Macadamia Nut Producer of the future!

September 2012

Central Mozambique – Ideal climate for Macadamia production

• Former Portuguese Colony

• Mozambique experienced 17 years of civil war between 1975 and 1992.

• Today it is a democracy. Any president is limited to 2 terms of 5

years each.

• Languages – Portuguese & English and number of African Languages

Political stability & cooperation

• Economy is surging forward at between 7% and 9% annual rate of growth

• World’s largest coal deposits – plan to export 100 million tons per year

• Ongoing discoveries of natural gas, iron ore and fluorite • Beaches along coral reefs which draws an ever expanding tourism

industry • The Cashew Nut industry in Mozambique produced about 100,000

tons of raw kernel in the 2010 / 2011 season. The government has intervened to re-invigorate that sector of their Tree Nut industry.

Commercial Macadamia Nursery in Chimoio Mozambique

Large scale Macadamia plantings near Chimoio

Production of Cash Crops

• Access to land to grow crops – done through DUAT system

• DUAT – effectively a 49 year lease over a farm

• Roads, Electricity, Mobile networks and Internet is upgraded on a continual basis

Infrastructure development

• 2012 – Approximately 1000 hectares of Macadamias established mainly around Central and Northern midlands

• Oldest trees 6 to 7 years and are just starting to produce

• Other large planting include Sugar Cane, Bananas, Maize, Timber and many other annual crops

300 hectare development of 3 year old Macadamias

• Macadamia cultivars that are showing signs of good yield potential

thus far in those regions are: • 695 Beaumont - One local orchard 2.25kg per tree in year 4

and 3.6kg in year 5 (NIS) • 816 • 814

• Other trial plantings are already established

4 Year old 695 Beaumont with 2.25kg NIS average

• 15 – 19 degrees south • Altitudes of 650 to 1000m • Truly subtropical climate • Deep, free draining, red Hutton clay-loam soils • Good water availability • Summer rainfall – 800 to 1000mm plus per year

Consistent water supply – Perennial rivers

Investment opportunity • There are handsome income tax incentives for investors and there is a reliable

transport system in place; to and from South African markets, and run by the private sector

• The registration of a local Mozambique Company can be done in a few weeks and a 5 year business plan must be submitted to their local Investment Centre (CPI), during the DUAT (The right to use the land) application process

• Mozambique recognizes the importance of their Agri-business and have an encouraging approach for investors coming into the Macadamia Nut business in that Country

• There remains a unique opportunity for both private and corporate investors who may be interested in expanding their Macadamia Nut business, to look seriously at Mozambique.

• “We have had amazing co-operation with all departments relating to the national as well as provincial government authorities. We have dealt with their lawyers, department of Agriculture, Investment Centre, Customs and Immigration, with no problems.” - South African investor in Macadamia nut development in Mozambique

Cash crops (Paprika) & Permanent Crops (Macadamias)