Mozambique and Brazil signed a memorandum of understanding (MoU) for the joint development of biofuels during the Biodiesel Forum, held this week in São Paulo, Brazil. The event, whose theme was Technology and Innovation, ‘marked an important milestone in co-operation between the two countries’.
The MoU was signed between the Brazilian Union of Biodiesel and Biokerosene Producers (Ubrabio) and Mozambique’s Economic Stimulus Package Office (EAP), represented by João Macaringue, according to Further Africa. ‘This agreement strengthens measure 10 of the country’s package, which provides for the compulsory blending of imported fuels with biofuels,’ reads the report.
According to the information, Brazil is a world leader in biofuel production, with a robust market sustained by vast agricultural resources and favourable government policies. ‘The country stands out as the main global producer of ethanol and biodiesel, benefiting from advanced technology, high investment in research and development, and strong domestic and foreign demand,’ the source said.
Mozambique, with similar climatic, geographical and land use conditions to Brazil, is considered an ideal strategic partner. ‘The partnership aims to promote the development and adoption of biofuels, in line with Mozambique’s energy transition goals presented at COP 28,’ explains the note.
The MoU is expected to attract substantial investment from Brazil to Mozambique, fostering research, development and production capacity in the biofuels sector. ‘This influx of capital represents a promising opportunity for investors, potentially increasing the profitability of biofuel companies and valuing their shares,’ reads the note, which adds that the agreement should also create jobs in Mozambique, especially in the biofuel industry, with the support and expertise of the Brazilian private sector. The expansion of factories and facilities will require skilled labour, boosting economic growth in the areas involved.
