VZCZCXRO7050
RR RUEHBZ RUEHDU RUEHJO RUEHMR RUEHRN
DE RUEHTO #1208/01 2841516
ZNR UUUUU ZZH
R 111516Z OCT 07
FM AMEMBASSY MAPUTO
TO RUEHC/SECSTATE WASHDC 8080
INFO RUCNSAD/SOUTHERN AF DEVELOPMENT COMMUNITY COLLECTIVE
RUEHAB/AMEMBASSY ABIDJAN 0050
RUEHAR/AMEMBASSY ACCRA 0105
RUEHFN/AMEMBASSY FREETOWN 0012
RUEHLO/AMEMBASSY LONDON 0059
RUEHLU/AMEMBASSY LUANDA 0752
RUEHYD/AMEMBASSY YAOUNDE 0014
RUEHLMC/MILLENNIUM CHALLENGE CORP WASHINGTON DC
RUCPDOC/DEPT OF COMMERCE WASHDC

UNCLAS SECTION 01 OF 02 MAPUTO 001208 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE PLEASE PASS USAID/AFR/SA 
STATE FOR AF/S 
 
E.O. 12958: N/A 
TAGS: ECON EAID EINV ETRD PGOV EAGR MZ
SUBJECT: CHIQUITA ESTABLISHES MOZAMBIQUE AS AFRICA 
HEADQUARTERS 
 
MAPUTO 00001208  001.2 OF 002 
 
 
¶1.  (SBU) This is a retransmission of Maputo 1157, which 
previously did not reach all addressees.  This cable is 
Sensitive but Unclassified (SBU), and contains business 
sensitive information that is not for distribution outside 
of the USG. 
 
¶2. (SBU) Summary:  Eager to access opportunities created by 
the European Union's preferential access programs, Chiquita 
is investing in Africa via a risk management approach that 
focuses on technical assistance to local banana growers 
while limiting capital investment.  Chiquita's decision to 
locate its African headquarters in Maputo was based on 
Mozambique's significant potential and strategic location 
able to reach both European and Middle Eastern markets. 
Chiquita's influx of technical assistance will give a major 
boost to commercial agriculture in Mozambique.  Chiquita 
currently has operations/partnerships in Ivory Coast, Ghana 
and Mozambique and is investigating possible investments 
partnerships in Cameroon, Sierra Leone and Angola.  End 
Summary. 
 
Chiquita Expanding in Africa 
---------------------------- 
 
¶3. (SBU) General Manager (GM) for Chiquita's operations in 
Africa Mark Oakley told Econoff that as a result of the 
European Union's (EU) African, Caribbean and Pacific (ACP) 
and Anything But Arms (ABA) programs, Chiquita made a 
decision to start looking seriously at banana and other 
product production in Africa for the European market. 
After examining Mozambique in greater detail, Chiquita 
realized that there is also significant opportunity for the 
Mediterranean and Middle Eastern markets given Mozambique's 
strategic location.  Chiquita currently has a small 
operation in Ivory Coast and partnerships in Ghana and 
Mozambique.  The company is investigating possible 
investments and partnerships in Cameroon, Sierra Leone and 
Angola.  Interestingly, although Chiquita seriously 
considered South Africa for its African headquarters, it 
decided on Maputo since it will have significant operations 
in Mozambique and flights to Johannesburg are easy to 
obtain. 
 
Chiquita's Africa Strategy and Mozambique Investment 
--------------------------------------------- ------- 
 
¶4. (SBU) Chiquita made a strategic decision to invest in 
Africa differently than it has invested in Latin America. 
Specifically, the company will not invest directly in land 
or cultivation, but will be putting capital resources in 
technical assistance, innovation and marketing.  What this 
means practically is that Chiquita partners with a local 
investor who buys/leases the land and invests capital in 
infrastructure and production, while Chiquita provides 
significant technical assistance and purchases the 
resulting product. 
 
¶5. (SBU) In Mozambique, Chiquita is partnered with 
Matanuska Ltd., which is held by Rift Valley Holdings 
(RVH), a primarily Zimbabwean company with some additional 
European investors.  Chiquita will establish its African 
headquarters with a General Manager for Africa and 
technical staff (production, infrastructure development, 
water management, irrigation, quality control and human 
resources) and will manage but outsource logistics.  (Note: 
Chiquita has already met with Fernando Couto, an investor 
in the OPIC-backed CDN Port of Nacala concession.  Chiquita 
believes it will be necessary to construct cold storage 
facilities and is interested in financing opportunities, 
including OPIC and ExIm.  End Note.)  Matanuska currently 
has a land concession for 6,000 hectares.  Banana planting 
will commence with 3,000 hectares after the next rainy 
season (February/March 2008) with first production and 
shipping expected in early 2009.  With 3,000 hectares in 
production Chiquita anticipates sending one vessel per week 
to load bananas at the port of Nacala. 
 
Beyond Bananas 
-------------- 
 
MAPUTO 00001208  002.2 OF 002 
 
 
 
¶6. (SBU) Chiquita would also like to get involved in 
additional projects in Mozambique and has begun preliminary 
discussions with TechnoServe to explore ideas and 
implementation strategies.  The General Manager believes 
these projects projects will include support for small 
growers, although in the banana industry that means at 
least 50 hectares or more, with a focus on specialty 
bananas and plantains.  Chiquita is also interested in a 
variety of other exotic, tropical fruit production for the 
specialty markets.  The primary market for these products 
remains the EU because of logistical limitations and 
product shelf life.  Chiquita has also stressed to 
Matanuska the importance of training and health programs 
and expects to partner with Matanuska, local NGOs and 
possibly USAID on various projects in these areas. 
 
¶7. (SBU) Comment:  Chiquita is making a big bet on Africa 
in hopes to satisfy growing demands in the EU and Middle 
Eastern markets.  If Chiquita and its partners are able to 
produce tropical fruits that meet international standards, 
it will significantly boost commercial farming operations 
in Mozambique.  We understand that Dole Foods is already 
making inquiries as only 12 percent of Mozambique's arable 
land is presently under cultivation.  Chiquita's innovative 
approach to investment in Africa, with limited capital risk 
and a focus on technical assistance and marketing, may 
provide a roadmap for other American companies interested 
in opportunities in the agriculture sector.  End Comment. 
 
Chapman