Africa-Press – Mozambique. The Irish company Kenmare Resources, which has been mining the heavy mineral sands in Moma and Larde districts in the northern Mozambican province of Nampula, since 2009 claims it is consolidating its position as a key driver of development for small and medium-sized enterprises (MSMEs) by allocating about 40 per cent of its procurement budget to Mozambican suppliers.
Heavy mineral sands are used for production of titanium ores, such as Ilmenite, that are the raw materials used in paints, paper, and other products.
According to Isefa Sitoe, Kenmare’s Procurement Manager, interviewed by AIM, the company’s annual purchases from domestic suppliers have reached 73 million US dollars, “corresponding to 40 per cent of its procurement budget, reinforcing the company’s role as a strategic partner of Mozambican businesses and contributing to strengthening the local economy.
She explained that the investment between Kenmare and MSMEs gained new momentum with the Conecta Negócio Project, implemented by the Ministry of Finance with funding from the World Bank.
“We always start by looking for suppliers in Topuito (where the Kenmare dredge mine is located), then in Nampula, and only then in the rest of the country. We only resort to foreign suppliers if there is no local capacity. Currently, Kenmare works with 213 Mozambican suppliers, equivalent to 40 per cent of its 700 active partners. The volume of global purchases has varied according to expansion projects, ranging from 79 million dollars in 2023, 77 million in 2024, and a projection of over 73 million for 2025, driven by new infrastructure and maintenance works”, she said.
Sitoe said that services represent the largest share of national supplies, ranging from maintenance, logistics, fumigation, laundry, and metal structures. “Mozambique is a service-oriented country, and it is in this area that we find the greatest competitiveness”, she said.
“More than just numbers, Kenmare’s commitment translates into direct social impact, requiring that 80 to 90 per cent of the subcontractors’ workforce be Mozambican, as a way to guarantee job creation and local development”, she said.
However, the company is extending its attention to the areas of agriculture and fishing, studying ways to empower nearby rural communities to directly supply food products to the mining complex, a strategy that could diversify the local economy and reduce imports.
The integration of companies with mega-projects is being driven through training in management, certification, and procurement to equip companies with greater capacity to respond to the demands of multinationals.
For his part, Joel Sauane, a business development specialist in the Conecta Negócios Project, said there is a goal of training 1,000 companies in Cabo Delgado, Nampula, and Tete provinces in management areas.
“To date, 600 SMEs have already been trained, 200 of which are in Nampula. When it comes to training and financing, two success stories (national companies based in Nampula) stand out, notably Fumilar, a fumigation company that received 25 million meticais to build an entomological laboratory, canteens, and warehouses.
“The investment allowed the company to double its workforce and increase sales by 15 per cent. This benefitted Construção Auro, a construction company with a strong track record of providing services to mega-projects. We expect Fumilar to achieve 20 per cent growth by the end of the year”, he added.
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