Brazil and Japan have signed a technical cooperation agreement to raise funds to develop agri industry in the Nacala Corridor,in Mozambique.
The project,known as Pro-Savana,will involve the exchange of technical knowledge between Brazil and Japan to promote agriculture in Mozambique.
The investment fund,which is known as Fundo Nacala,is presented by the Getúlio Vargas Foundation(FGV).The first phase of the project will involve$1bn investment each from Brazil and Japan.The project will focus on securing funding from the private sector.
FGV Projects director Cesar Cunha Campos said the fund would benefit ten million Mozambicans by supporting families as well as medium-sized and large agricultural projects.
The Nacala Corridor contains about 14 million hectares of farming land.This project is similar to the initiative that was undertaken in Brazil in the 1970s to improve the productivity of the Cerrado region.
