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Packaging Industry Report

The Republic of Mozambique

Export Packaging

The Republic of Mozambique

Geneva, 2008

Packaging Industry Report

ID=39063 2008 C-16 508 PAC International Trade Centre (ITC) Packaging Industry Report : Mozambique. Geneva: ITC, 2008. (Export Packaging) Doc. No. BAS-08-148.E

One from a series of studies on the packaging sector in selected African countries - provides an overview of the economic environment and its relevance to the packaging sector in Mozambique; looks at the Country's packaging industry by sector, as well as the consumption and trade of packaging goods and raw materials; outlines domestic supply and short and medium-term trends; examines the exisiting infrastructural and institutional support to the packaging industry; provides recommendations for improving the performance of the packaging sector and the supply situation at national, regional and international levels.

Descriptors: Mozambique, Africa, Packaging. EN International Trade Centre, Palais des Nations, 1211 Geneva 10, Switzerland (http://www.intracen.org)

The designations employed and the presentation of material in this paper do not imply the expression of any opinion whatsoever on the part of the International Trade Centre (ITC) concerning the legal status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries.

Mention of firms, products and product brands does not imply the endorsement of ITC.

Short extracts of this paper may be freely reproduced, with due acknowledgement of the source. Permission should be requested for more extensive reproduction or translation. A copy of the reprinted or translated material should be sent to ITC.

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Acknowledgments

Mr John Byett, and Mrs. Luciana Pellegrino, ITC International consultants specialized in the field of packaging, prepared this report.

Ms. Shakira Lakdawalla carried out copy preparation and design.

This report presents the results of a packaging industry audit of May 2006, a series of awareness building seminars and discussions held in June and December 2007, as well as the final recomme ndations for a plan of action.

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Acronyms and Abbreviations

ABRE Associação Brasileira de Embalagem AIGM Associação dos Industrias Gráficos CIDA Canadian International Development Agency CPUT Cape Peninsula University of Technology CTA Confederaçao das Associações Económicas DTI Danish Technology Institute DWB Double Wall Board FFS Form, Fill and Seal GDP Gross Domestic Product HACCP Hazard Analysis and Critical Control Points HDPE High Density Polyethylene IF Integrated Framework for Trade-Rela ted Technical Assistance INNOQ Instituto Nacional de Normalizacao e Qualidade IPEX Institute for the Promotion of Exports IR Infrared ISBM Injection Stretch Blow Moulding LDPE Low-Density Polyethylene LLDPE Linear Low-Density Polyethylene MIC Ministry of Industry & Commerce NGO Non Governmental Organisation PACT African Capacity for Trade PET Polyethylene Terephthalate PP Polypropylene PVC Polyvinyl chloride SADC Southern African Development Community SI International System of Units SME Small and Medium-Sized Enterprise SWB Single Wall Board TFOC Trade Facilitation Office Canada UEM University of Eduardo Mondelane UNIDO United Nations Industrial Development Organization UV Ultraviolet VAT Value-Added Tax

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Preface

The impact of globalisation is directly felt in the field of packaging, as exports have to comply with increasingly complex international standards and provisions, as well as target market specifications and requirements on safety, health, environmental protection and packaging.

Moreover, international trade rules and regulations, as well as the packaging expectations of importers and buyers, are changing drastically and rapidly. Increasing competition in the international market allows importers to take a very firm stand, requiring exporters from developing countries and transition economies to either meet their demands or lose market share. In addition, with the increasing participation of small and medium size enterprises (SMEs) in international trade, these companies are looking for relevant and practical state-of-the-art information and technical assistance on export packaging.

African exporters trading with developed countries, in particular, are at a major competitive disadvantage versus other regions because of the poor packaging of their export products. This situation prevents the sub-region from effectively competing and acquiring sustainable market position.

It is in this context that ITC’s export packaging activities have been focusing on capacity building programmes addressing exporting SMEs and trade support institutions (TSIs), as well as on the packaging supply chains in sub Saharan Africa. The objective of these programmes is to improve the export competitiveness of the region, by scaling up the capacity and capabilities of both the private and institutional packaging sector to serve the needs of the exporting industries. The activities undertaken will allow the setting up of short and medium term strategies and a roadmap at sub-regional level for capacity building on packaging.

Within this framework, a series of studies is being undertaken on the Packaging Sector in Selected African Countries. These studies will provide a basis for the identification of technical assistance needs for the packaging sector, i.e. projects, packaging initiatives and potential developments at regional level, in particular for exporting SMEs.

The information contained in these studies is of interest to all stakeholders involved in the export chain, including packaging end users, packaging goods and raw materials producers and importers, institutions providing infrastructural support to the packaging sector, as well as companies involved in physical distribution, insurance and financing.

In each study, the packaging-related information is structured along similar lines, namely:

1. The economic environment and its relevance to the packaging sector.

2. Consumption of packaging goods and raw materials by type.

3. Trade in packaging goods, raw materials and consumables.

4. Domestic supply and short and medium-term trends.

5. Infrastructural support.

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6. Recommendations for projects and actions for improving the performance of the packaging sector and the supply situation at national, regional and international levels, based on SWOT analysis.

The studies of the Packaging Sector in Selected African Countries are an important output of ITC’s Export Packaging programme, alongside its PACKit modules and other publications, all of which are listed on the Export Packaging website (http://www.intracen.org/ep/). Hard copies of these publications are available from the Export Packaging programme. Please contact:

Jacky Charbonneau Senior Adviser on Packaging Tel. +41 22 73 00 411 Fax. +41 22 73 00 576 Email [email protected]

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Table of contents

Acknowledgments i

Acronyms and Abbreviations ii

Preface iii

Executive Summary ix

1. Introduction 1

1.1 Industry audit 1

1.2 Seminars 1

1.3 Further packaging needs assessment 1

2. Overall business environment 3

2.1 Investment climate 3

2.2 Business activities 3

2.3 Logistics 3

2.4 Trade and imports 4

2.5 Labelling regulations 5

2.6 Labour 5

2.7 Markets 5

3. Packaging industry in Mozambique - Background 6

3.1 Packaging materials converted 6

3.2 Packaging imports 6

3.3 Printing 6

4. The packaging industry by sector 7

4.1 Rigid plastics 7

4.2 Flexible packaging 8

4.3 Plastics printing 9

4.4 Recycling 9

4.5 Corrugated board and paper 10

4.6 Metal products 11

4.7 Printing industry 11

4.8 Packaging design 12

4.9 Human resources 12

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5. Institutional support to the packaging industry 13

5.1 Institute of Standards and Quality (INNOQ) 13

5.2 Institute for the Promotion of Exports (IPEX) 14

5.3 Technical unit for promotion of local production 14

6. Discussion 15

6.1 Industry feedback April/May 07 15

6.2 Government policies with regard to the packaging sector 15

6.3 Impact of SADC agreements 15

6.4 The existence of an uncontrolled “informal trade” 16

6.5 Establishment of a Packaging Information centre. 16

6.6 Training 17

6.7 Establishment of a Packaging Testing centre 19

6.8 Personnel 20

6.9 Product Development 20

6.10 SWOT analysis 21

7. Recommendations, action plan & resource requirements 23

7.1 Reinforce exporters capacity in the field of export packaging through sector specific packaging counselling to the food processing industries 23

7.2 Strengthen technical support institutions through the creation of a Packaging Directory 23

7.3 Packaging Information centre 23

7.4 Strengthen technical support institutions through the set up of a packaging training centre and packaging education curriculum and networking with international packaging partners 24

7.5 Packaging in the education curriculum 24

7.6 Feasibility study for the set up of a Packaging Technical Centre 24

7.7 Reinforcing the regulatory sector by updating packaging and labelling regulations 25

7.8 Supporting and using the “made in Mozambique” brand identity on export packaging 25

7.9 Set up capacity building programmes to support the packaging supplier industries 25

8. References 29

Appendix I: Companies visited April–May 2006 30

Appendix II: Companies visited/interviewed by sector 31

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Appendix III: Report on seminars and discussions with industry, June 2007 33

Appendix IV: Contact details of companies visited April/May 2006 38

Appendix V: Internet references for Mozambique 44

Appendix VI: Reports on individual companies and people visited 45

Appendix VII: Mozambique product gallery and map 90

Appendix VIII: PACT Mozambique: Objective II 94

Appendix VIII: PACT Mozambique: Objective II 95

Appendix IX: Short Courses 97

Appendix X: Test equipment for packaging test lab 100

Appendix XI: Packaging information centre host: check list 101

Appendix XII: Course coordinator (Marketing person) for packaging 103

Appendix XIII: Integration into global markets: Opportunities and challenges for Mozambique 104

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Tables

Table 1: Injection moulding capacity..............................................................................7

Table 2: Injection stretch blow moulding capacity .........................................................8

Table 3: Blow moulding capacity....................................................................................8

Table 4: Blown film extruders.........................................................................................8

Table 5: Printing equipment in plastic sector.................................................................9

Table 6: Recycling equipment........................................................................................9

Table 7: Mozambique packaging companies contacted/visited, April-May 2006 ........... ......................................................................................................................30

Table 8: Mozambique printing companies contacted, May 2006................................30

Table 9: 24 April – 5 May 2006 .....................................................................................31

Table 10: 5-14 December 2007......................................................................................31

Table 11: Seminar assessment......................................................................................37

Table 12: Activities and performance indicators............................................................95

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Executive Summary

Recomendações, plano de ação & recursos necessários1

Reforçar e fortalecer a capacitação dos exportadores em relação às embalagens para exportação por meio de aconselhamento específ ico para o setor de al imentos processados.

a) Providenciar suporte de aconselhamento para setores prioritários dentro do segmento de produtos agrícolas (ex. indústria de castanhas de caju) para ajudar exportadores de Moçambique a migrar da exportação a granel ou sem identificação para embalagens / produtos diferenciados e personalizados. Organizar visitas de campo para grupo seleto de exportadores para Pemba sobre os procedimentos de exportação de castanhas de caju.

b) Organizar visitas de Mercado e participação em feiras de negócios específicas na África do Sul e Europa, visando o entendimento sobre os requerimentos de mercado e de embalagens, bem como das melhores práticas da concorrência, ex. feira Frutilogistica para frutas e vegetais na Europa ou feira Biofach para alimentos orgânicos na Alemanha.

c) Ao mesmo tempo, organizar visitas de indústria de processamento de alimentos agrícolas para feiras de embalagens no Brasil, Europa ou Índia para identificar tecnologias de embalagens que possam ser adaptadas.

Orçamento previsto de $90,000 para implementação desta atividade em 2008.

Uma cooperação de médio prazo entre o ITC (divisão Embalagem) e organizações sem fins lucrativos e associações de indústria que promovem o desenvolvimento das exportações no país, como a Technoserve, poderia ser iniciadas a fim de dar suporte a estas organizações sobre a otimização da embalagem. Uma opção a ser explorada é o investimento em contratação conjunta por setor industrial de fornecedor de embalagem e terceirização de acondicionamento.

Fortalecimento das inst i tuições de suporte técnico por meio da criação de Diretório de Embalagem

Empresas necessitam ter rápido acesso a fornecedores nacionais de embalagem e equipamentos. Para isto será criado um Diretório Nacional de Embalagem contendo: fabricantes de embalagens, fornecedores de insumos, importadores, gráficas, fornecedores de equipamentos e designers, visando facilitar o acesso dos exportadores a estas informações.

Orçamento previs to de $15,000 para implementação desta atividade em 2008.

Centro de Informações de Embalagem

Para garantir a sustentabilidade de todo o conhecimento adquirido e para facilitar a sua disseminação, recomenda-se a criação de ponto focal da embalagem no país, que trabalharia

1 This executive summary in Portuguese is a summary translation of chapter 7.

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como referência no assunto e multiplicador de informações, incluindo programas de treinamento para o mercado e transferência de conhecimento. Este Centro serviria às necessidades dos fornecedores e usuários de embalagens. Este poderia fornecer informações sobre requerimentos de mercado para exportação, e também dar suporte de aconselhamento sobre materiais, embalagens, tecnologias de acondicionamento (e envase), marketing e rotulagem.

• IPEX pode ser uma candidata para sediar o Centro de Infor mações em Embalagens

• A organização selecionada e o ITC devem em conjunto indicar e promover o treinamento de profissional de embalagem para concentrar as funções de ponto focal da embalagem (coletar e multiplicar informações) bem como coordenar treinamentos. O DNI será contatado para intermediar o treinamento / visita desta pessoa às fábricas do país.

• ITC deverá implementar ferramenta de controle referente ao desenvolvimento do trabalho deste profissional, como por exemplo, sistema de reporte ao ITC ou a seu representante.

Orçamento previsto de $ 80’000 para desenvolvimento desta atividade em 2008.

Fortalecimento de insti tuições de suporte técnico por meio do estabelecimento de centro de treinamento em embalagem, currículo de formação em embalagem e interação com parceiros internacionais

O objetivo deste programa é criar um ponto no país onde o treinamento em embalagens e afins possa ser planejado e colocado em prática. Por exemplo, o ITC poderia trabalhar em colaboração com a associação gráfica AIGM e oferecer assistência técnica especializada em treinamento referente ao tema impressão de embalagem, como flexografia, litografia, entre outros. O objetivo seria promover a excelência em design, reprodução e produção em litografia e flexografia.

Este importante programa poderia ser desenvolvido em conjunto com parceiros: África do Sul, Brasil (ABRE – Associação Brasileira de Embalagem), Dinamarca (Instituto de Tecnologia da Dinamarca) e coordenado pelo ITC. Moçambique irá, desta forma, se beneficiar com a rede de contatos em embalagem do ITC, incluindo a possibilidade de relacionamento com a ABRE, entidade líder do mercado da América Latina.

Orçamento previsto de $ 120’000 para implementação desta atividade em 2008.

Embalagem no currículo de formação

• A Universidade de Eduardo Mondelane e o Instituto Industrial de Maputo (colégio técnico) devem ser abordados para incluir programa de treinamento industrial experimental em embalagem para os seus alunos. Esta exposição ao setor de embalagens é componente fundamental aos cursos de graduação em engenharia. O DNI deverá ser contatado para iniciar e coordenar os contatos entre indústrias e universidades.

• Avaliar junto a estas universidades um programa de bolsa de estudos em embalagem para estudantes de graduação em engenharia. Isto ajudaria a garantir que alunos aceitos por Universidades de Moçambique estariam disponíveis para trabalhar neste setor a longo prazo.

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• Uma análise de melhorias no programa de polímeros da universidade e colégio de Engenharia Química deverá ser efetuada. Isto pode significar investimento em equipamentos de testes laboratoriais.

Estudo de viabi l idade para implementação de Centro Técnico de Embalagem

Ter um local no país onde exportadores e fabricantes de embalagens podem realizar testes de materiais e embalagens é muito importante para o sucesso das exportações, considerando as normas e regulamentos sobre embalagens, segurança alimentar e rastreabilidade.

O objetivo é preparar um estudo de viabilidade para a implementação de centro de testes de embalagens, para ser apresentado ao governo e possíveis doadores para seu financiamento.

O projeto prevê a instalação de um centro de recursos técnicos em embalagens, onde se poderia obter orientações técnicas sobre embalagens. Este também poderia fornecer informações sobre requerimentos de exportação do mercado, mas primeiramente orientações de suporte sobre materiais, embalagens, tecnologias de acondicionamento e envase, marketing, rotulagem e também treinamento. Este centro poderia incluir a criação de uma planta piloto de embalagem e processo de acondicionamento para produtores testarem seus produtos / embalagens e produzirem amostras para teste de mercado. Esta unidade poderia também facilitar o estabelecimento de uma associação de profissionais de embalagem.

Orçamento previsto de $ 50’000 para o estudo de viabilidade a ser conduzido em 2009.

Fortalecimento das questões regulatórias por meio da atualização das normas de embalagem e rotulagem

Uma atualização dos regulamentos sobre rotulagem de embalagem, atualmente coordenados pelo INNOQ, deve ser feita de forma efetiva. Definições de especificações de embalagens precisam ser elaboradas em relação à preservação/proteção, e contribuição da embalagem para identificação e diferenciação do produto. Esta atua lização pode ser facilitada pela experiência e suporte técnico de organizações parceiras no Brasil e na África do Sul.

Orçamento previsto de $ 80’000 para desenvolvimento desta atividade em 2008.

Reforçar e fortalecer o uso do selo “Orgulho Moçambicano – Made in Mozambique” nos produtos para exportação .

Deve-se buscar uma atualização do uso do selo “Made in Mozambique”, como por exemplo uso, controle, tempo de implementação, promoção do selo e custos para a empresa usuária.

O objetivo seria:

- Trabalhar com outras organizações para expandir o processo de certificação e qualificar mais empresas exportadoras para o seu uso;

- Trabalhar na otimização gráfica de execução do logo, atualmente com 5 cores e conseqüente forte impacto no custo de impressão.

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- Oferecer apoio no marketing e promoção do logo para recompensar as empresas pelo seu investimento.

Orçamento previsto de $ 150’000 para implementação desta atividade em 2009.

Implementar programas de capacitação para dar suporte às empresas fornecedoras de embala gens

• Além do aconselhamento técnico e treinamento, um programa de capacitação deve ser organizado para fornecedores de embalagens, incluindo visitas a fabricantes de equipamentos, visitas com acompanhamento técnico a feiras especializadas na África do Sul, como Packex, na Europa e no Brasil.

• Pesquisas de Mercado devem ser desenvolvidas para detector os temas requeridos (relacionados à embalagem e sua fabricação), número potencial de executivos para treinamento e/ou cursos de curta duração na indústria de embalagem

• ??Campanha de conscientização e valorização do Design de embalagem a ser promovida dentre a indústria alimentícia e de embalagem enfatizando a embalagem como ferramenta estratégica de marketing e vendas

• Estabelecimento de contato com experts em embalagem do Brasil e Portugal. Mestres em embalagem fluentes na língua portuguesa deverão ser identificados, em especial para o setor de plásticos. Para este fim a ABRE – Associação Brasileira de Embalagem será um parceiro-chave.

• O ITC deverá trabalhar, em parceria com a associação gráfica AIGM para oferecer auxílio técnico especializado no treinamento relacionado aos sistemas de impressão de embalagens.O objetivo é promover excelência em design, reprodução e produção em litografia e flexografia. Exemplo: a realização de visitas à gráficas para avaliar suas necessidades em treinamento em litografia e flexografia com ênfase em papelcartão e rótulos.

• Visitas serão feiras a empresas com links internacionais, em especialmente do setor de alimentos, para detectar e estabelecer seus padrões e critérios de fabricação e de embalagem e suas necessidades em treinamento em embalagem.

Orçamento previsto de $ 150’000 para o desenvolvimento desta atividade em 2009.

International Trade Centre xiii

Programa Objetivo Resultados Esperados

Parceiros Potenciais

Prazo Custo (US$)

Indicadores de Performance

• Programa de

treinamento de embalagem específico para indústrias de alimentos

• Diretório de Embalagem • Centro de Informações

de Embalagem • Centro de treinamento

de embalagem – cursos de curta duração

• Instalação de centro de

testes de embalagens – estudo de viabilidade

• Regulamentação em

nível nacional sobre embalagem

• Promover programa de

treinamento especializado e oferecer aconselhamento empresarial e mercadológico

• Fornecer aos usuários de

embalagem rápido acesso aos fornecedores de embalagens e insumos

• Criar um centro de

inteligência de embalagem que concentre e multiplique todas as informações relacionadas ao tema

• Criar um centro de

treinamento de embalagem • Definição das condições

para criação de laboratório nacional para testes de materiais, embalagens e produtos embalados

• Estabelecimento de novas

regulamentações sobre embalagem e rotulagem

• Melhoria das embalagens

para exportação em setores estratégicos (castanhas, outros)

• Um diretório de embalagens

constantemente atualizado com ampla distribuição

• Um centro de informações

de embalagem operante • Disponibilização de

programas de treinamento em embalagens, identificação de centro(s) de treinamento, treinamento e certificação de professores

• Definição de indicadores

para a busca de patrocinadores para o projeto

• Estabelecimento de novas

regulamentações sobre embalagem e rotulagem

ITC IPEX ITC - ABRE CPUT IPEX

ITC – ABRE CPUT Instituto de Tecnologia da Dinamarca (DTI) ITC – ABRE – CTI ITC – ABRE – INNOQ

2009

2008

2008

2008

2009

2010

90.000

15.000

80.000

120.000

50.000

80.000

Melhoria de performa nce das embalagens para exportação; indústrias de embalagens e de alimentos melhor capacitadas Facilidade de acesso ao diretório e nível de demanda por parte dos usuários de embalagem Nível de demandas por informações sobre embalagem Elaboração de currículo de treinamento em embalagem, número de professores treinados e certificados, treinamentos concluídos Conclusão do estudo de viabilidade Novas regulamentações em vigor

xiv International Trade Centre

Programa Objetivo Resultados Esperados

Parceiros Potenciais

Prazo Custo (US$)

Indicadores de Performance

• Suporte e promoção do

uso do selo “Made in Moçambique” nas embalagens para exportação

• Implementação de

programa de capacitação para indústrias fornecedoras de embalagens

TOTAL

• Programa para

implementação do selo nas embalagens para exportação

• Promover programa de

treinamento sobre exportação e oferecer aconselhamento empresarial

• Aplicação do selo nas

embalagens de produtos para exportação

• Incremento da qualidade

das embalagens para exportação

ITC - ABRE ITC – ABRE

2009

2009

150.000

150.000

735.000

Aplicação do selo em vigor

International Trade Centre 1

1. Introduction

The Ministry of Industry & Commerce (MIC), in partnership with the International Trade Centre (ITC), has implemented a programme component of the Canadian Programme for building African Capacity for Trade’ (PACCIA/PACT) (output II.1) in the field of export packaging support, with a focus on agri-food products. PACT is a joint programme by the ITC, Geneva and the Trade Facilitation Office Canada (TFOC), Ottawa, implemented in several countries of Africa, under the financing of the Canadian International Development Agency (CIDA). Its aim is to enhance the capacity of Africa’s private sector to conduct international trade.

PACT-Mozambique is in line with the priorities defined in the context of the Integrated Framework for Trade-Related Technical Assistance (IF). It focuses on several areas, including the improvement of packaging standards in the agro-food sector to meet export market requirements and improve export competitiveness. In this context, PACT-Mozambique decided to focus on improving the packaging standards in the agro-food sector to meet export market requirements and enhance competitiveness. This audit has been conducted as part of Objective II of the programme: “To assist Mozambican enterprises in improving their packaging with a view of enhancing competitiveness in the agro-food sector”. (Appendix VIII). This component is designed to facilitate improvement of packaging standards in the agro-food sector in order to meet export market requirements and enhance competitiveness of goods from Mozambique.

1.1 Industry audit

The packaging programme component started with an audit of the national packaging industry in April-May 2006. The aim of this audit was to conduct an assessment of the current capabilities of the industry to serve the current and future needs of the agri-food export sectors. As packaging impacts on a diverse range of services and industries, industrial visits focussed on covering the spectrum of ‘packaging’ producers and some users in the private sector. A range of interviews was also conducted across a number of relevant government departments. The packaging industry is concentrated near the capital, Maputo, with smaller industries near Beira and Chimoio (Central), and Nampula and Nacala in the North. Only packaging manufacturers in Maputo and Beira were visited for the purpose of the audit.

1.2 Seminars

The audit was followed by three awareness-building seminars with the agri-processing export sectors, held in Maputo, Beira and Nampula, respectively, in June 2007. Each seminar included round table discussions with several of the exporting agri-food sectors, in order to assess user requirements in terms of packaging supplies for exports. A total of 70 delegates attended these seminars, many being from local food industries.

1.3 Further packaging needs assessment

A third round of visits was made to assess packaging producer and packaging user needs with respect to the following:

2 International Trade Centre

1. Packaging information/ resource centre. E.g. provision of information on export packaging related matters, including import country regulations, packaging specifications for exports, international packaging standards, market information, bar codes, advisory support on materials, packaging and filling technologies, marketing, labelling, etc.

2. Provision of appropriate training courses in the packaging and related fields

3. Provision of a Packaging test centre that would provide test facilities to the industry.

The objectives being broadly based it was important to spread the net for these visits as wide as possible to ascertain the strengths and weaknesses of the industry as well as relevant Government agencies and education sectors.


2. Overall business environment

2.1 Investment climate

Mozambique’s economy, recovering from the civil war and benefiting from macro-economic reforms and large foreign investment projects, grew an average of 8% per year during 1994-2005, the best growth record for any country in sub-Saharan Africa over this period. The Mozambican Government expects an average real GDP growth rate of 7-10% over the next five years. (Reference 1)

2.2 Business activities

The primary business activities in Mozambique are still trading and retail sales, although this is changing. The three principal sales regions are the northern, central and southern sections of the country. Few traders distribute in all three regions due to the distances involved and limited infrastructure in place. Many Mozambicans engaged in international trade take advantage of personal ties to Portugal, South Africa, Zimbabwe, the Middle East, Brazil, or India to accomplish their commerce, and many speak English.

The "Doing Business in 2006" (which covers 2005) report by the World Bank identifies Mozambique as one of the most difficult countries to start a business. (Reference 3) In 2005 the average time to open a bus iness was 139 days. Investors face a number of requirements for permits, approvals and clearances, all of which take a significant amount of time and effort to obtain. The Government, working with donors, hopes to shorten this period considerably in the coming years. (Reference 1) (Appendix XIII: “Integration into global markets: Opportunities and challenges for Mozambique)

Private ownership of land is not allowed in Mozambique. Instead, the Government grants land-use concessions for periods of up to 50 years, with options to renew. Essentially, land use concessions serve as proxies for land titles; however they are not allowed to be used as collateral. The Mozambican banking community uses property other than land, such as cars and private houses, as colla teral. (Reference 2)

2.3 Logistics

Mozambique has about 5,000 km of paved roads. Road conditions are generally poor, except for large stretches of the main South-North highway, the Beira corridor and the toll highway connecting Maputo with Johannesburg, South Africa. The main South-North highway is passable from Maputo to Pemba, though vehicles must cross the Zambezi river by ferry. The road network connecting provincial capitals is in fair condition, but can be riddled with potholes and other obstacles, particularly during the rainy season. There are restrictions for driving on gravel roads after heavy rains but these are poorly implemented.

Rehabilitation and expansion of the road and rail network is continuing, with significant donor funding from the Wor ld Bank and other organizations. Rehabilitation of port and airport facilities also figures prominently on government and donor agendas.


The major commercial ports are at Maputo, Beira, and Nacala. Beira is Zimbabwe’s main port of entry to the world market. Political turmoil in Zimbabwe has slowed traffic through the port, with exports declining by approximately 40% since 2001 resulting with a large decay in local business. (Reference 1)

The rail network links Mozambique ports to South Africa, Zimbabwe and Malawi. However, there is no North-South rail link, e.g. connecting the capital to the other centres. (Appendix VII: ‘Mozambique product gallery’ - for more pictures; map of Mozambique).

Figure 1: One access road to Maputo’s industrial area

Figure 2: A good road to industrial area in Maputo

2.4 Trade and imports

South Africa is Mozambique’s biggest trading partner and the largest source of foreign investment. In 2005 the top five investors were South Africa, Great Britain, Zimbabwe, Portugal and Sweden. Most investment has been in the South, in and around the capital city, Maputo. An estimated 50% of imported products are consumed in the three principal cities of Maputo (South), Beira (Centre), and Nampula (North).

Mozambique is eligible for trade benefits as a member of the Southern African Development Community (SADC). Duties on imported goods range from zero to 20%, depending on whether a product is a primary input, intermediate, or consumer good. Although the top rate is relatively high, the average duty paid on all imports is now 9% on a trade weighted basis, making the Mozambican overall tariff regime one of the lowest in Africa. Procedures to clear customs are onerous. (Reference 2)

Under SADC agreements these duties are scheduled to drop in stages over the next 10 years and finally reduce to zero at the following dates:

• Products from South Africa

- Intermediate goods: 2008

- Finished goods: 2015

• Products from other SADC countries:

- Intermediary goods: 2008

- Finished goods: 2012


Typical duties on imported packaging materials are:

• Raw materials e.g. polymer, sheet metal: 2,5%

• Intermediate goods e.g. labels, boxes: 7,5%

A value-added tax (VAT) of 17% is also assessed at the point of sale. The National Directorate of Trade, which is part of the MIC, must license all importers.

2.5 Labelling regulations

Labelling requirements for foodstuffs and pharmaceuticals remain on the statute books since prior to independence. Latterly, industry-government task teams have been taking action on transgressions regarding illegal imports and labelling.

2.6 Labour

The estimated work force is approximately nine million, out of a total population of 19 million. However, only approximately 400 - 500,000 are formally employed.

Figure 3: A range of cashew nut products in local and imported packaging

An estimated 81% of the labour force works in agriculture, 6% in industry and 13% in services, e.g. more people work in the agricultural sector (generally doing subsistence farming) than in any other in Mozambique. While commercial agriculture remains limited, it is expanding, especially in sugar, cotton, citrus, coconut, cashews, and tropical fruit crops. (Reference 2)

Regulations in the areas of labour, health and safety and the environment are routinely not enforced, or are enf orced randomly to generate revenue from fines. (Reference 1)

2.7 Markets

Mozambique has a large, as yet unrealized, potential for horticultural/agricultural products. Citrus fruits, sugar, cashews, macadamias, lychee, tropical fruits, vegetables, tobacco, and flowers (specifically roses) are all potentially commercially viable cash crops in Mozambique.

Given the stringent phytosanitary requirements for exports of fresh produce, the majority of opportunities are in the processed food arena. Specifically, dried fruits, essential oils, jams/jellies, fruit juices, fruit peels, canned fruits and juices are all possible products that could be profitably manufactured and exported from Mozambique. (Reference 2)

Domestically produced oils, mainly coconut, groundnut, and maize combined with lesser amounts of cottonseed, sesame, and sunflower oil, generally dominate rural markets.

Equipment for the manufacturing and packaging of such products would need to be imported. The printing industry would require technical assistance to provide appropriate support to packaging.


3. Packaging industry in Mozambique - Background

Mozambique is poorly developed and the packaging industry is geared mainly to meeting basic needs with regard to local and a few exported goods. Most consumer goods are imported into the country, ready packaged. Supermarket shelves reflect this with major local packed products being confined to essentials like mineral water, fresh meats and dairy, cooking oils, flour, sugar and nuts. (Appendix VII: ‘Mozambique product gallery’ for pictures of products)

Packaging development in any country is driven by product needs. The agro-food sector in Mozambique has a small but growing export sector, making use of ‘packaging’. Some notable product supply deficiencies occur even with the basic foods, e.g. Maputo imports all its fresh milk requirements and certain vegetables.

3.1 Packaging materials converted

Packaging materials converted in Mozambique are:

• Plastics (rigid and film)

• Corrugated board

• Tinplate

• Sacks – PP

• Plain paper labels

There is no local production of paperboard cartons, paper sacks or bags, metal closures (scheduled to close during 2006) and glass. There is limited production of paperboard cartons. The one company producing tin cans is using a slow line. The cans produced are for specialised end uses, e.g. paint. The glass factory, Vidreira de Mozambique, may reopen this year, depending on finance.

3.2 Packaging imports

Packaging materials imported are corrugated board, paper products, paperboard, polymer, plastic (PET) pre-forms, tinplate, glass, pigments, and inks. Most packaging materials are imported from neighbouring South Africa. A tax rate between 0 and 7.5% is levied depending on whether the imports are categorised as raw materials, intermediate (semi finished) or finished goods. Many companies also apply for, and get, tax exemption on imported goods and materials.

3.3 Printing

The printing industry meets local needs for paper labels as well as the usual promotional materials, brochures, leaflets, reports, etc. At present, it offers little in print quality for export packaging. No production by printers of self-adhesive labels and paperboard cartons was identified during the audit.


4. The packaging industry by sector

Individual companies are reported on in Appendix VII: In total, the plastics packaging sector represents an estimated volume of less than 10,000 tons per annum. Topack, the market leader, converts about 200 tons per month. This represents about one-third of the plastic sector in Mozambique. Employees in the ‘packaging plastics’ sector total about 300.

4.1 Rigid plastics

The plastics sector is the better developed technologically, with companies offering injection moulding, blow moulding, injection stretch blow moulding (ISBM) and blown film extrusion. There is no vacuum forming, film lamination, co-extrusion technology in place; again, any local needs are mainly supplied from South Africa. The largest company, Topack, employs 100 people.

Injection moulding

Injection moulding capacity is the largest technology, mainly using old machines. Tonnage ranges from 100 to 1,000 ton clamp force. Materials processed are the standard commodity plastics LDPE, LLDPE, HDPE and PP. No engineering plastics were seen being processed although this survey only assessed ‘packaging’-related companies. Pigments are imported. One company is exporting crates to Angola.

Table 1: Injection moulding capacity

Company Injection moulding capacity

Implastic 180 ton, 400 ton and 600 ton

Industrias Manica 2 functional machines (170 and 150 ton); 4 non-functional

Plasticos da Beira 1 x 100 ton

Riplex 1 x 240 ton

Topack 2 x 650 ton; 1x 850 ton; 1x 1000 ton; plus smaller machines x 2; Screen-printing: semi automatic for crates

There is much unused and under utilised capacity. In two factories in Table 1, all injection-moulding machines were idle at the time of the visit. By contrast, the largest factory, Topack, is modern, well equipped and currently expanding. Tool room facilities are limited to basic repair and maintenance. There are few toolmakers in Mozambique. Moulds ex overseas are a low cost option.

Injection stretch blow moulding

ISBM is running at four companies, which supply the larger markets (local mineral water, cooking oil) with ISBM is running sizes up to 5 litres. One company is intending to place its


machines directly at factory sites where these containers are filled in the central district so as to minimise transport.

Table 2: Injection stretch blow moulding capacity

Company ISBM capacity

Greif 1 x injection moulding m/c (Nissei) supplying pre-forms; Hand blow (Wel Li, China) x 5; one more Nissei on order

Implastic 1 x ISBM blower; imported pre -forms

Riplex 4 x ISBM blowers; imported pre -forms

Topack ISBM blowers; imported pre -forms + made in house

Blow moulding

Blow moulding is a smaller business in Mozambique, producing bottles and containers up to 5-litre capacity. LDPE, HDPE, PP and, in one case, PVC, machines are running. Screen-printing of bottles was seen at only one company, Riplex, mainly on cosmetic bottles. Screen-printing of plastic crates is carried out at Topack.

Table 3: Blow moulding capacity

Company Blow Moulding Capacity

Implastic 5 x Bekum; processing PVC, LDPE, HDPE and PP

Industrias Manica 1 x Bekum; 1 x other

Riplex Blow moulding x 3 (Parkers): 2x single station, 1x double station. Screen printing, 1 colour; hot foil stamp

Topack 4 x Bekum

4.2 Flexible packaging

Materials converted are LDPE, HDPE and PP in thicknesses from 10 to 120µm. Supply is to the local bag and carry bag market, either as separate bags or on a roll. Film is flexographically printed, mainly on to carry bags and sachets and of poor quality. Laminations, metallised and co-extruded films are not converted in Mozambique and are generally supplied in printed form (e.g. 6 colour flexo) from South Africa.

Table 4: Blown film extruders

Company Blown film extruders

Industrias Manica 4 x extruders; LDPE, LLDPE, HDPE, PP

Plasticos de Beira 2 x extruders (one Battenfeld); 4 x carry bag extruders and makers; HDPE

Riplex 2 x extruders; LDPE, LLDPE, HDPE, PP

Topack 4 x extruders; LDPE, LLDPE, HDPE


Figure 5: 3 blown film extruders, Industrias Manica

Figure 6: Flexographic press, Riplex, Maputo

4.3 Plastics printing

Plastics printing presses are used mainly for simple printing work, e.g. carrier bags for retailers.

Table 5: Printing equipment in plastic sector

Company Presses

Industrias Manica 2 x flexo presses: one 4-colour and one 2-colour

Riplex 1 x flexo press (6 colour); quality = the best of the bunch one colour screen printing hot foil stamp

Topack 2 x flexo presses (4-colour) screen printing of crates

4.4 Recycling

At least 3 companies are actively involved, or will soon be involved, in recycling of externally sourced plastics waste. This is converted into cheaper packaging and other products.

Table 6: Recycling equipment

Company Presses

Plasticos da Beira Re-granulator. NB no pelletiser

Riplex Re-granulator and pelletiser

Topack Single screw extruder and pelletiser. (±100 kg /hour)


4.5 Corrugated board and paper

Cartonagens de Mozambique Lda (Carmoc) is the major producer of corrugated board (± 3000 tons p.a.); Embalagens Holdains lda (Holdains) is the 2nd supplier (± 1 000 ton p.a.) in Mozambique. Both companies are South African owned. Carmoc operates the only corrugator in Mozambique. There are two other smaller converters. Board produced is SWB ‘b’ and ‘c’ flute and DWB, e.g. banana cartons. The producers’ chief customers are the fruit industry, SA Breweries, Coca-cola, BA Tobacco, and the fish /prawns and cashew industries.

The two converters are characterised by having old to very old equipment. This situation is anticipated to change within the next years for the major supplier of corrugated board, Carmoc. The company will become a wholly owned subsidiary of the South African company, Nampak. The eventual capital investments proposed will result in quality and supply improvements for board from Carmoc.

Intended investments include changes to or new equipment for die cutting, slotting and gluing. Die cut boxes and trays are part of Carmoc’s product line. Their largest off take of these is by "Bannaland” (18kg). Other export fruit products are tropical fruits including pineapples. There is currently a problem with supply of cutting and creasing blades that is resulting in poor quality boxes. There were a number of complaints by users downstream made during the expert visit. Carmoc are currently running at 60% capacity and are able to take on more business.

Figure 7: Preparation of bottles for recycling

Figure 8: Loading paper on corrugator, Carmoc, Maputo

Figure 9: Printer-slotter, Holdains, Maputo


Paper

Paper and other paper products (laminates; coated), materials are South African sourced (e.g. from the South African owners). Import duty is 2.5%.

Carmoc is actively pursuing the installation of equipment to make 2-ply paper bags. These will hold up to 5 kg of product, e.g. flour, potatoes, etc. Material will be imported and printed in two colours. The factory site may be in Beira.

Printing

Printing is of mediocre quality on 4-colour flexo printer-slotters (e.g. poor register of colours). Photopolymer plates are ex South Africa.

4.6 Metal products

The two companies involved, Greif and Carmoc, supply to paint and oil manufacturers and do not produce main line food cans. Greif export their product, a 90-litre drum, to South Africa.

Figure 10: 5 litre cans, Carmoc

Figure 11: Litho plate maker, Academica

4.7 Printing industry

There are an estimated 1,500 employees in Maputo and 500 in the Beira area involved in printing. This is based on 25 to 30 Maputo companies and 8 to 10 Beira companies.

The two mainstream companies visited, Academica and SGL, are amongst the largest in Mozambique. They offer 1 to 5 colours, plus varnish coat, and litho printing of promotional materials, brochures, leaflets, etc.

Mozambique does not have:

• Reel to reel label presses for self adhesive labels

• Paperboard carton production

• UV or IR ink drying technology.


4.8 Packaging design

There are a few packaging graphic designers in Mozambique. Examples of the work seen were suitable for export quality packaging. Further appraisal is required.

4.9 Human resources

A number of managers commented on skills shortages to set and run plastics conversion equipment and printing presses. Skills’ training is ‘in house’ utilising, in some cases, imported skilled artisans. A ‘printing’ school used to run in Maputo and this is a possible route to assist in the printing area.

Training of toolmakers for mould maintenance and manufacture is not required at this stage in the development of the plastics industry. Plastics manufacturers outsource repairs from South Africa and Portugal.


5. Institutional support to the packaging industry

There are a large number of commercial and industry associations running in Mozambique, the more relevant to ‘packaging’ being:

• Graphics association: Associação dos Industrias Gráficos (AIGM) de Mozambique

• Fruitisul: Associação de Fruticultores do Sul de Moçambique

These associations operate under the umbrella of the Confederaçao das Associações Económicas (CTA). (See appendices for details).

5.1 Institute of Standards and Quality (INNOQ)

The national authority for legal metrology, the Instituto Nacional de Normalizacao e Qualidade (INNOQ), is the custodia n of national standards of measurement. The legal unit of measurement is the International System of Units (SI).

Responsibilities of INNOQ include to:

• Acquire and assure maintenance, conservation and updating of primary and secondary measuring standards;

• Supervise the feasibility of the use of measuring equipment;

• Assure accreditation and coordinate national network of Metrology Laboratories;

• Assure and update the national measurement system, taking into consideration the recommendations, conventions, international conferences etc., which are endorsed or ratified by the Republic of Mozambique;

• Approve and assure application of regulations related to Metrological Centres;

• Accreditation of inspection staff;

• Promote and coordinate the representation of Mozambiq ue in regional and international metrology institutions and assure the institutional link with their secretariats;

• Promote the establishment of agreements with regional and international metrology centres aimed to improve the use of their metrology centres;

• Promote research activities within metrology scope.

There are no test/check facilities at INNOQ. Laboratories are used at the Ministry of Health and the Ministry of Agriculture.

Summary of INNOQ work in the ‘packaging’ area include:

• Revised regulations on labelling are being updated as a result of discussions and mutual agreement with SADCC countries. There are no major implications for local products.

• HACCP is only implemented in the fish and cashew nut export business.

• ISO 9000 has been implemented in 7-8 Companies all non-packaging.

• Packaging: At present there are no legal metrology requirements for packaging.


Instrument Calibration and Evaluation Systems : At present there are no facilities for calibration of instruments.

Legal metrology practitioners : At present there are only the trade measurement inspectors with basic education, employed by the City Councils.

5.2 Institute for the Promotion of Exports (IPEX)

IPEX is a non-profit government organisation with the purpose of encouraging exports via market identification, promotion and dissemination of relevant trade information. For example, there is a trade and market information centre with a library including an export directory and exporter’s manual.

Current food products exported include:

• Cashew nuts to India in bulk for re-processing

• Prawns to Japan and Europe

• Grapefruit to Europe

• Bananas to South Africa

• Coconut oil to Switzerland,

• Tea to Malawi and Zimbabwe

• Sunflower cooking oil

Example : The current volume of prawns exported: ± 9 000 tons p.a. Packaging is all imported from Europe or South Africa.

Potential exports (or exports that have been tried in the past): mineral water.

5.3 Technical unit for promotion of local production

This unit was started in January 2006 by the Ministry of Industry and Commerce, and is tasked with promotion of local and export goods.

The ‘Made in Mozambique’ label is awarded to compliant manufacturers and services.

Categories of compliance include environmental, safety, labour relations, and social responsibility. Products currently in agro-foods include citrus, cashew nuts, tuna, and prawns.


6. Discussion

6.1 Industry feedback April/May 07

Three main issues came out of the discussions with industry in Maputo, Beira and Nampula (April/May 2007):

• Government policies with regard to the packaging sector

• Impact of SADC agreements

• The existence of an uncontrolled “informal trade”.

(Appendix III: Report on seminars and discussions with industry; June 07).

6.2 Government policies with regard to the packaging sector

In the context of government policy and its current and future effect on the packaging industry, the discussions with industry highlighted the following:

• Packaging standards : these need to be updated including legislation on labelling and coding.

• Information / resource centre : Provision of information on export packaging related matters, including import country regulations, packaging specifications for exports, international packaging standards, market information, bar codes, etc.

• Packaging testing centre : Where packaging suppliers and users can test their packaging, including the important packaging/product packed interface (vital for perishable food products).

• Finance: The necessity to include financial incentive schemes on export programmes that extend beyond export sectors to the supply related industry, including packaging line equipment (e.g. adapt/upgrade facilities to operate to the required international standards).

6.3 Impact of SADC agreements

The national packaging industry is, in general, not well developed. One major contributory factor to this is that superior ‘packaging’ can be easily obtained from the relatively sophisticated ‘packaging’ sources of South Africa and other SADC countries. The low level of import duties on such goods and services reinforces the presence of strong regional players in the country. Still, users perceive packaging quality, especially in the export sectors, as unsatisfactory.

Import duties between Southern African Development Community (SADC) countries are due to be dropped in 2008. The major impact on the national packaging industry and agro-sector of the impending removal of tariff barriers is reduced competitiveness and, more specifically, the duty rates on intermediary goods (e.g. semi-processed packaging materials imported, such as PET preforms), which carry a 7.5% duty rate. As a result, national agro-processors, such as beverage companies, are at a competitive disadvantage versus imported products; neighbouring exporters to Mozambique don’t incur such government taxes on their packaging materials.


Examples: Riplex foresees difficult market conditions ahead as tariff barriers on imported SA finished goods in the plastics sector are zero-rated. On the other hand, Mondipak will be given a more competitive edge, as the 7.5% it now pays on imported board will go.

6.4 The existence of an uncontrolled “informal trade”

A major point of concern was raised with the presence of illegally imported packaging materials (e.g. preforms; labels; bottles) and packed products that do not undergo any quality controls and disturb market prices. Examples: CIM and Mondipak expressed the illegal importation of goods as a concern. In both cases, these were affecting business in a marked way.

6.5 Establishment of a Packaging Information centre.

There was a consensus amongst the visited supplier and user companies that a packaging information centre would be an asset and could be utilised immediately. The type of information required would vary widely with the industry concerned and therefore should cover as wide spectrum as possible e.g. materials, processes, labelling, coding, legislation, etc. Ease of access to this information is a relevant issue. Availability of on-line access with file download, CD/DVDs, printed ‘packaging /printing suppliers’ directory are examples.

Location

There were a number of options for location of the information centre. IPEX was the best match by far to the ‘packaging’ criteria. The major valuable services provided by IPEX include:

• An active information retrieval and dissemination infra-structure already established and in contact with industry

• Current information: a two-people -assisted library with 3 information workstations available to members; Intranet facility; existing database of exporters

• Communication: A twice a month newsletter emailed to its members; a market alert service to members via SMS

• Resources available : photocopier, scanner, and printers.

• A nearby training centre for running of seminars.

• Satellite offices in Beira and Nampula

• Representation of local business and industry at International trade shows

Detailed information on ‘packaging’ can be relatively easily be inserted into existing information structures at IPEX. The various synergies with the information and services currently offered would ensure ease of access for ‘packaging’ enquirers. IPEX will be able to provide a ‘one stop shop’ on information not only for export market requirements, but also advisory support on materials, packaging and filling technologies, marketing, labelling, etc. In fact, ITC’s involvement with IPEX can be traced back quite a few years already.

Criteria used to assess suitability are listed in appendices.


6.6 Training

There seldom are enough resources to meet every training need. However, the consequences of not training are far more expensive than the costs of training in terms of failure to develop the potential of Mozambique’s human capital.

The distinction between training and education is important when considering how to assess training needs. Training is concerned with the competency of people who already are part of the national workforce; education is concerned with providing a knowledge base and thinking capacity needed by men and women to be productive members of the workforce at some future time. In the packaging context, both are required with training being the more urgent. Visits to the educational institutions are reported separately below.

Current training

Manufacturers apply a variety of techniques for the training their staff. The larger Companies (e.g. Topack, CIM) have a more rigorous approach, whereas smaller companies use little forward planning. Sourcing varies from taking trainees ‘off the street’ to using graduates from the local technical institutions. Portugal has always been a source of engineering and other trades and larger companies will continue to bridge the training gaps by importing the skills required. One comment made was that the aluminium smelter, Mozal, has had a considerable effect on using up supply of locally trained engineers. Mozal, a subsidiary of the South African company Billiton, employs 1,000 Mozambicans and represents the country's largest economic project to date.

The local technical institutions are geared up to produce the usual range of skills to mechanical and chemical engineers, either at the artisan level (welding, soldering, etc) or more academic, generic knowledge on engineering at the University (UEM).

Certif ication .

Two companies visited are going to implement certification in the near future: Topack with ISO 9000 and CIM wit h HACCP on one biscuit line.

Both these initiatives planned for 2008 will see radical changes to training in these Companies. For Topack, these needs are urgent, as their experienced Portuguese operatives have retired leaving a short-term skills gap.

No visits to Companies with international links were made but most certainly this will be the case with some of these as well, particularly those manufacturing foodstuffs.

Problems in Training

Training needs assessment for an industry such as this with its many sectors, each having its particular materials and conversion equipment, is a complex task. A small sample of companies was interviewed in the producer and user sectors. Key aspects of training delivery in Mozambique are:


• Language. Delivery of the training materials in Portuguese is most important at the supervisor /operator level. In one Company (Topa) the language barrier was so bad that they have ceased bothering about training.

• The small size of each of the industry sectors (board, plastics, etc) in Mozambique too mitigates against having a common approach e.g. a specific competency based course run at one independent venue would not be viable.

• Sharing of a production facility for training. Access to the factory floor by employees from another company is always a problem due to confidentiality issues.

• One comment made (Riplex), that operators did not hold supervisors in high regard and therefore instructions were largely ignored, also needs to be considered.

• Quality culture. The concept of quality is poorly understood, (workers, supervisors, managers). e.g. Riplex: no precision on attaching labels and hand trimming of bottle neck; Mondipak: outdated and poorly maintained equipment gives poor cutting/trimming of board.

For maximum effect, training needs to be on the job, preferably in-house and on equipment and machinery as used by the operator / supervisor. Training topics, therefore, need to be focused on critical competencies in the major production sectors where there is enough demand. To assess the demand would require further investigation, particularly in the printing industry.

Besides technical training on packaging, it would be necessary to build the knowledge among high management level at packaging producer and end-user companies regarding the importance of packaging as a strategic marketing and selling tool, including the Design concept and technique.

(See Appendix IX: Short course on: Marketing.)

Plastics

The demand by topic would be dictated by the relative importance in the industry. Injection moulding is the dominant technology followed by blow moulding. The topics that probably would sell best would be ‘injection moulding’ (e.g. Topack), blow moulding (e.g. Riplex).

Educational courses, such as ‘plastics materials’, ‘quality’ and ‘printing’, may be of interest to a number of plastics and related companies. (See appendices for content)

In this regard, improvement of the ‘polymer’ content of the local university chemical engineering course was one suggestion.

Board

There are 2 major corrugated box manufacturers in Mozambique, each with training resources in South Africa. More applicable here would be general courses on ‘Packaging’ for the companies and their customers (e.g. buyers, admin staff etc.) dealing with, for example, manufacturing processes, material properties and the protection and sales appeal aspects of packaging; and for producers, a program about quality including the storing of raw-board and finishing.


Foods industry

Training topics, selected on the basis on being fairly generic in application throughout the industry, would be on principles and operation of form, fill and seal (FFS), heat sealing and shrink wrapping equipment. CIM have offered the use of their production equipment to the industry in general for any training required.

Technoserve, the agency that is implementing training in the foods area for production plants, is interested in an applicable packaging course running alongside their in-house training.

Specific courses on an individual company basis would not be viable and is best approached by using a more general approach e.g. a course on ‘food packaging’. (See Appendix IX)

Education

The closest matches to ‘packaging’ in the education sector are that of mechanical and chemical engineering. These two disciplines could help supply the packaging industry with technically qualified artisans, diplomats and graduates in the longer term. Three levels of training / education were covered by site visits:

• Centro de Formação Profissional Metalomecânica. (A Mechanical Engineering training centre)

• Instituto Industrial de Maputo (Technical college level)

• University of Eduardo Mondelane (UEM)

All are potential sources of young staff qualified to be brought into the industry. Discussed with the college and university were suggestions to ensure more students are exposed to opportunities in the packaging industry:

• Exposure to any industry is currently included as a ‘practical’ component for each course. This could include some time spent in selected ‘packaging’ companies.

• A ‘packaging’ bursary scheme would also ensure that approved Mozambique students would be available for work in the industry in the longer term.

Also of note was that the plastics company, Topack, and the Centro de Formação Profissional Metalomecânica are working together to ensure a supply of trained staff for their workshop.

6.7 Establishment of a Packaging Testing centre

The establishment of a testing centre in a country or company marks the usual technical growth to a point where there is sufficient knowledge and demand for such. Indicators used to measure this were:

• Current level of testing carried out in a company

• Use of quality control procedures in production

• Use of specifications to control, order and compare packaging materials

• Company certification requirements


In contrast to the positive demand for an information centre, the test centre concept was received with little interest. Current quality culture in the packaging producing industry is virtually nonexistent.

Foodstuff and other product manufacturers would have a need for testing; but this would have to be assessed in terms of demand.

Topack, the leading plastics company, carry out product specific testing in-house. More generic tests, as provided by an independent packaging lab would not be of too much value to them. CIM, however, as a large user of flexible and corrugated packaging, currently have their incoming packaging materials tested in South Africa and support the creation of a test centre. This view is also likely to be expressed by international companies whose packaging (generally imported) is required to be of a high standard.

On balance, there is not enough current demand in Mozambique to warrant a ‘packaging’ test centre.

Laboratório de Engenharia de Mozambique (LEM) is a competent test centre utilised by the engineering sector and INNOQ for a wide variety of tests and checks. They are the best candidate for the hosting of a packaging test centre. INNOQ planned test laboratory developments are also of interest, but dependent on the raising of finance.

6.8 Personnel

The packaging information centre will require an employee, probably on a part time basis initially, who will integrate within the existing IPEX structure. The research, planning and conducting of training and short courses will involve a part time person with marketing skills. Both these areas could be handled by one person but probably not as successfully as two specialists; one dealing with information dissemination at IPEX, the other a packaging course coordinator. (Job specification proposal – see appendices)

It is clear that the country’s economy is betting on the growth of export of local goods, especially agricultural products. This was made evident by different private and government bodies’ efforts to push local producers forward.

A well structured packaging industry would be key to provide, at competitive cost and strategic logistic system, packages such as boxes or retail packs. Further, the technical and quality program to be run in the packaging industry would bring to the country international standards of quality and the sense of searching for industrial solutions nationally.

6.9 Product Development

Product development is a major way to stimulate change in this industry; e.g. investment in ‘packaging’ and related technology must be linked to commercially viable, local or export products. This is the case with the current success of cashew nuts packed for retail. Identification of suitable products and preservation methods has been made by a number of government departments and NGOs. This link between packaging users (e.g. growers) and the local packaging industry requires strengthening so that locally sourced packaging can be developed and used.


Therefore, part of the solution is not the quick fix of importing the equipment and ‘technology’ for the industry, but to provide the education and training at a pace suitable for each product that has been uniquely identified beforehand.

6.10 SWOT analysis

A SWOT analysis of the packaging industry in Mozambique produced the following results:

Strengths

• Variety of agro-food products available with export potential; specifically cashew, dried fruit and fruit juices.

• The ‘plastics’ production sector is relatively advanced technically with a good product range.

• Plastics recycling companies in place.

• Some good quality printing of paper-based products.

• “Made in Mozambique” label; a good marketing platform to build on.

Weaknesses

• Wide scale dependence on imported goods.

• Poor quality of packaging – machines and materials.

• No local production of paperboard, self-adhesive labels, paper bags/sacks, glass and food cans.

• Corrugated board – an important medium of export of goods – low in quality.

• Management and productions standards for foodstuffs not in place – e.g. ISO 9000, HACCP.

• Low level of skills available for use in industry.

• Poor infrastructure – road, rail

• Poor monitoring of health and safety issue in factories.

Opportunit ies

• Link in ‘packaging’ considerations at the start of product development projects.

• Communicate the role of ‘packaging’ – as a protection and sales tool – to the major exporters.

Threats

• Lowering of SADC import tariffs over the next 10 years.

• Illegal importation and illegal labelling of goods (‘informal trade’).


• Dominance of industry by imported goods and packaging materials – board, paper, flexible plastics, tinplate, glass, pigments.

• Packaging user companies not seeing a return on investment when using the “Made in Mozambique” label due to poor label promotion.


7. Recommendations, action plan & resource requirements

7.1 Reinforce exporters capacity in the field of export packaging through sector specific packaging counselling to the food processing industries

a) Advisory support to a selection of priority agro food sectors (e.g. cashew nut industry) should be provided, to help Mozambican exporters move away from bulk undifferentiated exports to differentiated branded packs. Organize field visit with a selection of exporters to Pemba regarding export practices of cashew nuts.

b) Organize market visits and participation in specialized trade shows in South Africa and Europe, in order to understand market and packaging requirements and competition best practices, e.g.‘Fruitlogistica’ for fruits and vegetables in Europe, or ‘Biofach’ for organic foods (Germany).

c) At the same time, organize agro-food processor visits at selected packaging trade shows in Brazil, Europe or India to identify and help in the selection of adapted packaging technologies.

A budget of $ 90’000 is foreseen for this activity for implementation in 2008.

A medium term cooperation of ITC Packaging with non for profit organizations and industry associations operating on export development in the country (such as Technoserve) could advantageously be initiated to support these organizations in the field of packaging optimization. One option to be explored is the investment in joint contract packaging operations by industry sector

7.2 Strengthen technical support institutions through the creation of a Packaging Directory

Enterprises need to have a quick access to national suppliers of packaging materials and equipment. This will be achieved with the creation of a national packaging directory: packaging producers and converters, importers, printers, equipment suppliers and designers in order for exporting enterprises to quickly identify suppliers of packaging materials and equipment.

A budget of $ 15’000 is foreseen for this activity for implementation in 2008.

7.3 Packaging Information centre

To ensure sustainability of knowledge acquisition and transfer in the country, it is recommended to create a focal point for ‘packaging’ in the country that would provide knowledge acquisition and transfer regarding information sharing, training activities, expertise transfer. The centre would serve the needs of the suppliers and users of packaging materials. It could provide information on export market requirements, but also advisory support on materials, packaging and filling technologies, marketing, labelling, as well as provide training.


• IPEX could be a candidate to host the Packaging information centre.

• The organization selected and ITC jointly appoint and arrange for training of a ‘packaging’ resource /information specialist who will possibly double up as a training coordinator. DNI be approached to facilitate the local industrial exposure/ training of this person.

• ITC will need to ensure controls are in place with regard to the nature and extent of the work being done by the resource person e.g. a system of reporting to ITC or ITC representative.

A budget of $ 80’000 is foreseen for this activity for 2008.

7.4 Strengthen technical support institutions through the set up of a packaging training centre and packaging education curriculum and networking with international packaging partners

The purpose of this programme is to create a place in the country where packaging related training can be organized and delivered. For example, ITC could work, in close collaboration with the printing association (AIGM), and offer technical expert assistance on training related matters pertinent to printed packaging e.g. flexo, litho and screen printing. The aim would be to promote excellence in design, reproduction and production in lithography and flexography.

This important programme could be joint-developed with four partners: South Africa, Brazil (ABRE, packaging association of Brazil), Denmark (Danish Technology Institute) and coordinated by ITC. Mozambique will thus benefit from the contributions of the ITC packaging network partners, including the possibility of networking with ABRE, Latin America’s leading packaging institution.

A budget of $ 120’000 is foreseen for this activity, to be developed in 2008.

7.5 Packaging in the education curriculum

• The University of Eduardo Mondelane and Instituto Industrial de Maputo (Technical college) be approached to include appropriate ‘packaging’ industry experiential training for their students. This industry exposure is already an important component of full time courses for engineering. DNI will need to be approached to initiate and coordinate this industry – education institution liaison.

• A ‘packaging’ bursary scheme supporting full time engineering students should be investigated with these Institutions. This would help to ensure that approved Mozambique students would be available for work in the industry in the longer term.

• An investigation into improving the ‘polymer’ content of university and college Chemical Engineering qualifications should be made. This may mean expenditure on test equipment for laboratories.

7.6 Feasibility study for the set up of a Packaging Technical Centre

Having a place in the country where exporters and packaging producers can get their materials and packages tested is very important for export success, in the context of packaging rules and regulations, food safety as well as food traceability.


The proposal is to prepare a feasibility study for the proposal of the set up of a packaging testing centre, to be presented to the government and the donor community for financing.

The project would be to set up a technical resource centre for packaging, where technical advice could be obtained on packaging matters. It could also provide information on export market requirements, but primarily advisory support on materials, packaging and filling technologies, marketing, labelling, as well as pr ovide training. It could also include the creation of a packaging and filling pilot plant for the producers to test their products packaging operations and prepare samples for market testing. This unit could also facilitate the establishment of an association of packaging professionals.

A budget of $ 50’000 is foreseen for this feasibility study to be conducted during 2009.

7.7 Reinforcing the regulatory sector by updating packaging and labelling regulations

An update on packaging label regulations, currently undertaken by INNOQ, should be made effective. Definition of packaging standards needs to be made regarding preservation/ protection and the contribution of packaging to product identification and differentiation. This update would advantageously benefit from the experiences and technical support of partner organizations in Brazil and South Africa.

A budget of $ 80’000 is foreseen for this activity during 2008.

7.8 Supporting and using the “made in Mozambique” brand identity on export packaging

An upda te should be obtained on the use of the “Made in Mozambique” label e.g. usage, controls, timing to implement, label promotion and costs to the user company.

The objective would be to:

- Work with other organizations to expand the certification process and qualify more exporting enterprises to be able to use the logo;

- Work at optimizing the graphic execution of the logo, currently 5 colours, and a major cost handicap at the printing level.

- Offer assistance in the marketing of the logo so that Companies receive value for their investment.

A budget of $ 150’000 is foreseen for this activity in 2009.

7.9 Set up capacity building programmes to support the packaging supplier industries

• Next to technical advice and expert training, a capacity building programme should be organized for the suppliers, including visits to key equipment suppliers, the attendance (with experts coaching) to selected packaging trade shows in South Africa (e.g. ‘Packex’ exhibition), Europe or Brazil.


• Market research to be carried out to ascertain the required topics, (packaging and production related), potential numbers of staff for training and/ or short courses in the packaging industry.

• A ‘Design’ awareness campaign be promoted in the food industry and packaging producers empathising ‘packa ging’ as a strategic sales and marketing tool

• Links will have to be established with ‘packaging’ expertise in Brazil and Portugal. Portuguese speaking potential trainers will have to be sourced, particularly for use in the plastics sector. In this regard, Associação Brasileira de Embalagem (ABRE) is an ideal potential partner. In the longer term, ITC need to ensure that the ‘train the trainer’ approach is used.

• ITC should work, in collaboration with the printing association (AIGM), and offer technical expert assistance on training related matters pertinent to printed packaging. The aim would be to promote excellence in design, reproduction and production in lithography and flexography. E.g. Visits be first made to printing companies to assess training needs in litho and flexography with emphasis on paperboard cartons and labels.

• Visits will be made to companies with international links, particularly in the foods sector, to establish their manufacturing and packaging standards and packaging training requirements.

A budget of $ 150’000 is foreseen for this activity in 2009.


Programmes Objective Expected results Potential partners

Timing Cost (UD$)

Performance indicators

• Sector specific packaging

training programmes for the food industries

• Packaging directory • Packaging information centre • Packaging training centre

with short courses • Set up packaging test centre:

feasibility study • National packaging

regulations

• Hold expert training

programmes and deliver sector and enterprise level counselling

• Provide all packaging users

with easy access to packaging suppliers

• Create an expertise centre in

the country which holds all information related to packaging

• Create a packaging training centre

• Terms of reference of the

creation of a national laboratory to test materials and products packaged,

• New packaging and labelling

regulations in place

• Export packaging

improvement for exporters in selected sectors (cashew, others)

• A packaging directory

widely available and regularly updated

• An operational

information centre on packaging

• Packaging training

courses available, training centre(s) identified, certified trainers trained

• Mozambique has terms

of reference to look for financing of a packaging test centre

• New packaging and labelling regulations in place

ITC IPEX ITC-ABRE CPUT IPEX ITC-ABRE CPUT Danish Technology Institute (DTI) ITC- ABRE – CTI ITC- ABRE INNOQ

2009 2008 2008 2008 2009 2010

90’000 15’000 80’000 120’000 50’000 80’000

Better performing export packages; better informed packaging suppliers & users Packaging users possess easy access to the directory and use it Number of enquiries for packaging information Packaging curriculum designed and Number of trainers trained and certified Trainings completed Feasibility study completed New regulations in place


Programmes Objective Expected results Potential partners

Timing Cost (UD$)

Performance indicators

• Support the usage of “Made

in Mozambique” on export packaging

• Set up capacity building

programmes for the packaging supplier industries

TOTAL

• Programme for on pack

implementation of logo • Hold export training

programmes and delivery of enterprise level counselling

• Logo used on export

packaging • Packaging industry

players improve the quality of export packaging supplies

ITC-ABRE ITC-ABRE

2009 2009

150’000 150’000

735’000

Certified logo in place


8. References

The following references have been used in this report:

1. Mozambique 2006 investment climate statement; 01/26/2006 Trade information centre, U.S. Department of Commerce. http://www.trade.gov.

2. Doing Business In Mozambique: A Country Commercial Guide for U.S. Companies, 2005.

3. CTA 9th Industry conference, 3-5th May 2006; Maputo.


Appendix I: Companies visited April–May 2006

Table 7: Mozambique packaging companies contacted/visited, April-May 2006

Company Main processes Products Employees

Carmoc Corrugated paper; tinplate containers, tissue paper

Corrugated boxes; cans; tissue paper 200

Holdains Printing, slotting; direct import of boxes Corrugated boxes 39

Implastic IM, EBM, ISBM Injection moulded products, bottles, plastic containers

28

Industrias Manica IM, EBM, blown film Injection moulded products, printed film, bags, bottles, 33

Plasticos da Beira IM, EBM, blown film, recycling Injection moulded products, film, bags, pipe 33

Riplex IM, EBM, ISBM; blown film Injection moulded products; bottles; printed film, bags

31

Topack IM, EBM, ISBM; blown film Injection moulded products; bottles; plastics containers, printed film

100

Greif IM, ISBM; can and drum line Metal products: 1 to 210 litre; PET bottles

70

Total 495

Table 8: Mozambique printing companies contacted, May 2006

Company Main processes Products Employees

Academica Lithography Promotional materials, brochures, leaflets, reports, computer paper

160

SGL Lithography Promotional materials, brochures, leaflets, reports

64

Media Print Digital Printing; lamination Promotional materials, brochures, leaflets

±10


Appendix II: Companies visited/interviewed by sector

Table 9: 24 April – 5 May 2006

Converting Material Companies visited Date

Corrugated Cartonagens de Mozambique Lda (Carmoc) Mondipak (formerly Holdain Ida)

2006 2006/7

Labels Academica; Spectrum Graphics Limitada (SGL) 2006

Plastics - rigid Topack; Riplex; Implastic; Industrias Manica; Plasticos da Beira lda; Greif

2006/7 2006

Plastics - flexible Topack; Riplex; Industrias Manica; Plasticos da Beira

2006/7 2006

PP Sacks Topa 2007

Tinplate Greif; Cartonagens de Mozambique (Carmoc) 2006

Paper None in Mozambique -

Paperboard Cegraf not visited 2006/7 -

Glass Vidreira – not operational -

Table 10: 5-14 December 2007

Other Company/Organisation visited or interviewed Date

Printing Academica 2006

Printing Spectrum Graphics Limitada (SGL) 2006

Printing Media Print 2006

Food Producer CIM (wheat, maize products) 2007

Food Producer Anarcadia (cashew) 2007

Food Producer Van Duzi: Baby Corn 2007

Food Producer Agrogest: fresh milk, yogurt 2006

Food Producer Cabo Caju: Cashew nuts 2006

Food Producer Mafumbise sugar 2006

Food Producer Productos alimetaries Lda (Portal): Nestlé products 2006

Food Producer Soc de Pescas Miradoura, lda: prawns 2006

Food Producer Soluções lda: prawns 2006

Food Producer Union General Corporation (UGC): cashew nuts 2006

NGO Technosserve 2006/7

NGO Kulima 2006

Government National Directorate of Industry (Ministry of Industry and Commerce)

2006/7


Other Company/Organisation visited or interviewed Date

Government Institute of standards and quality (INNOQ) 2006/7

Government Institute for the Promotion of Exports (IPEX) 2006/7

Government Technical unit for promotion of local production 2006

Government Laboratotio de Engenhaia de Mocambique (LEM) 2007

Professional institution

Associacao das Industrias Gráficas (AIGM) 2007

Education University of Eduardo Mondelane (UEM) 2007

Education Instituto Industrial de Maputo (IIM) (Technical collage level) 2007

Education Centro de Formação Professional Metalomecânica (Mechanical Engineering training centre)

2007

Conference 9th annual conference of the private sector, 3-5th May 2006, Maputo

2006


Appendix III: Report on seminars and discussions with industry, June 2007

A series of 3 seminars and discussions with industry were held during the period of 6-11t June 2007, with the cooperation of the MIC.

1 . Maputo

Dates: 6th and 7th June 07, seminar and discussions

Venue: VIP Hotel, Maputo and Ministry of Industry and Commerce, Maputo, respectively

Present at seminar: about 25 delegates, packaging suppliers, users and government.

Present at discussions: about 8 delegates

Discussions

• Illegal imports are a big issue for Van Leer (packaging producer), CIM (general maize and wheat based foods- flour, pasta, biscuits) and Açucar (sugar). There are many exacerbating factors e.g. Government inactivity, large informal market. A private – public sector task force; is addressing this but large financial losses continue. Tightening of 1983 ‘packaging labelling’ legislation is required (the update is currently in the hands of INNOQ, the National Institute for Standardisation and Quality)

• Food labelling and packaging certification: currently food manufacturers can go through CSIR and SABS in SA.

• CIM: There is much dissatisfaction with locally sourced outer containers from Holdains and Carmoc. Films, (e.g. rotogravure PP) are imported as local suppliers cannot supply quality and in more than a 4 colour flexo.

• Sugar: Locally sourced woven PP bags, ex MIC and TOPA, are used for bulk packaging there is potential for export of specialty consumer packs of sugar.

• Cashew: Anacardia Ltd is exporting 30-ton p.a. in bulk packs and is looking for an appropriate pack for consumer packs for export.

• Association for packaging suppliers and users. There was some support for the formation of a professional body to represent the industry. Some large scale producers in Mozambique have a professional body representing them e.g. sugar; cashew.

• Honey: Frutimel Lda is an producer of honey and wishes to export to South Africa. Production is at 10 tons p.a. Currently in glass jars, the producer is seeking an appropriate PET jar.


2 . Beira

Date: 9th June 07

Venue: Mozambique Hotel, Beira

Seminar and discussion delegates: 21

Composition: a wide spectrum of packaging user companies from Beira and Manica province.

No local packaging producers were present.

4 of the scheduled 6 presentations were made to delegates followed by an hour of round table discussions. The seminar was abbreviated due to one day only being available at Beira venue.

This arrangement worked well as delegates stayed for the general discussion session afterwards and this sequence was repeated in Nampula.

Discussions

• Supply chain: The major point raised by a number of delegates was the unreliable supply of packaging materials, from Beira and Maputo suppliers. One view expressed was that packaging suppliers were doing packers a favour rather than a service in providing packaging supplies. This added to the poor quality of supply, aggravated manufacturers ability to maintain good delivery of their production. Imported materials were often cheaper and more reliable in supply and quality. Comment was also made about the higher cost of some packaging versus the imported material. No comments were made about the provision of service and infrastructure as contributory factors to this poor supply.

• Illega l trade and products. No comments were made concerning the influx of illegal products and counterfeits into Mozambique.

• Van Duzi farms of Chimoio exports fresh vegetables, mainly corn, by air to Britain c/o a South African cargo carrier. Van Duzi use a reliable collection door-to-door service provided by a South African cargo company to Johannesburg airport. Further growth is envisaged into other product lines. The company is seeking a supplier of plastic punnets. They have applied to “Fairtrade” for use of a label.

• Jam producer is seeking assistance in packaging alternatives for his range of jams. He is exporting 20 ton p.a. to South Africa Various options and information sources were discussed.

• ‘Solid Gold’, an exporter of cheeses in the Chimoio area, is applying for the “made in Mozambique” label. The producer is also intending to improve his current vacuum packaging line by using a flow wrap machine. He also believe there is a need for PET bottle source in the Chimoio area.

• A wine producer in Beira was visited. The company is a small family run business of between 30 –50 employees. Core business: mixing and filling of wines and spirits, no distillation. Packaging used is imported glass bottles, 750 ml and 5 litre and their own 250ml PET bottle. Closures are imported ex. Hungary and labels are printed in Beira.


One bottle blower, ex China, is producing the PET bottles with preforms supplied by Novoplas, Maputo. They are in need of technical skills to operate the bottle blower.

An offer to assist in this was made by the Van Leer delegate. Product quality of the company’s finished product is poor. Once again the quality of local litho printed labels was found to very low; e.g. poor registration, white flecks and poor colour maintenance on the labels that is typical of some of the industry. Current packaging line equipment is old or non existent. The company is actively pursuing the launch of fruit juices into the local market.

3 . Nampula

Date: 11th June 07

Venue : Executive Hotel, Nampula

Seminar delegates: 25

Composition: a spectrum of packaging user companies (about half the number of delegates) and Government officials from Nampula province. Producers present represented the following products: salt, flour, juices, mineral water, beverages, biscuits, and tea. One delegate produced his own PET bottles from preforms. No other packaging producers or any fruit growers were present.

Discussions

Locally sourced packaging is unusual for companies. Issues raised were individual Company concerns:

• Tea: There are 4 major tea producers. Beira is the preferred port for export as there are about 14 vessels calling there per month, versus 2-3 at Nacala. Tea is exported to South Africa, Kenya, Sweden, North Africa in 25kg aluminium based sacks. Required is information on US import regulations; labelling; pallets; flexible packaging alternatives for the current sack

• Mineral water in PET - duties on imported mineral water bottles: these products will soon be zero rated versus that of local preforms for local sourced water being levied at 7,5%

• No issues of illegal imports or poor supply were raised

4 . General conclusions

• The seminars were well received and appreciated by a broad cross-section of industry. (See table: “seminar assessment by delegates”). About 70 delegates attended the 3 seminars, the majority being from the packaging user industry. Sustainability of provision of ‘packaging’ information would be better ensured in future by a local packaging resource centre

• The use of imported packaging materials is very common. Factors of lower cost, better reliability of supply and quality were often cited, particularly in the Beira /Chimoio region. The Nampula producers rely heavily on packaging sources from Malawi, Zimbabwe and South African. Materials imported are from across the spectrum of packaging – plastics films, outer corrugated boxes, labels. The PET bottle is the one item that Mozambique


packaging industry is getting right as bottle blowing is relatively easy on a technical level. Food manufacturers rely on imported preforms.

• Small, relatively inexpensive packaging line additions would enable some small businesses, e.g. juices, cheese producers, to improve their production line efficiencies and product quality,

• Good quality print on packaging is a weak point in the supply chain. The relatively high cost and medium to poor quality is a factor in making purchasing decisions on using locally sourced materials. The poor quality of corrugated boxes was a common complaint.

• Joint purchases by companies of packaging; across user sector packaging standards; packaging test centre: These options are not viable, the industry is too small and diverse to warrant.

• Entrepreneurs would benefit from a specific resource directory for packaging materials and print available in the country. The current business directory, produced by Informacao Telefonica Profissional (ITP) for 2007/08 is inadequate for packaging and printing contacts in Mozambique in terms of scope and depth of information provided.

• Inadequate control of illegal packaging and products are a major underlying cost factor and threat to good business practice in the business environment.

• The SADC tariff reductions and their eventual elimination will certainly affect the profitability of smaller packaging suppliers and packaging user companies.

5 . Recommendations

• A technical unit for packaging where local advice can be obtained on packaging matters be established. The could provide resources on, for example, materials, marketing, labelling, training. A suitable ‘home’ for this unit may be INNOQ or IPEX. This unit could also facilitate the eventual establishment of an association of packaging professionals if there is a need. ITC make provision for the training of any personnel

• The equipment upgrade of the major corrugated box producer, Carmoc, be evaluated

• An update on packaging label regulations, currently undertaken by INNOQ, be obtained

• Closer cooperation of ITC Packaging with Technoserve be sought e.g. cashew, fruit packaging. Appropriate fruit growers need to be contacted with regard to their packaging needs

• The offering of soft loans to assist the entrepreneur using packaging lines be investigated. This finance would be focussed on purchase of small packaging line equipment. There must be provision of appropriate machine training at the same time.

• A business directory of Mozambique contacts in the packaging and printing field be produced. This would include auxiliary services such as quality auditors, graphics designers, local transporters, port facilities, marketing agents, bar coding

• Contact be made with the printing association (AIGM) with regard to offering assistance on training related matters pertinent to printed packaging e.g. flexo, litho and screen printing


6 . Seminar assessment by delegates

Table 11: Seminar assessment

Seminar topic Of no value Of some value

Very useful information

Total responses

Introduction to packaging Packaging as a marketing tool Packaging materials Product assessment and packaging Packaging for export Packaging industry in Mozambique

2 1 1 1 1 1

7 10 10 12

5 2

38 36 36 26 23

9

47 47 47 39 29 12

Total 7 (3%) 46 (21%) 168 (76%) 221 (100%)

The number of delegates differed for some of the sessions.


Appendix IV: Contact details of companies visited April/May 2006

Company Address Email Tel/Fax

Corrugated

Cartonagens de Mozambique Lda (Carmoc) General Manager: Mateus Gonçalves

[email protected]

[email protected]

Ph: +258 21 400 428 / 21 401 362 Fax: +258 82-401-622 / 21 401 075 Ph: +82 301 0530 / 82 309 0280

Mondipak Manager: Nuro Mulá

Av. das Industrias 1862 Machava, Box 303, Maputo

[email protected]

Ph: +258 21 750 043 / 372 / +82 301 2230 Fax: +258 21 750 044

Plastics

Riplex Ragendra Dhirajlal

Av. de Mozambique 1548

[email protected] Ph: +258 21 475 054 +258 82 301 0100 Fax: +258 21 477 564

Industrias Manica Owner: Chariff 82 387 8978 Manager: Yoaõ Sacuzi

Rua da Extremadura 952, Beira

Ph: +233 533 13

Implastic Directors: Nelson and Clara Silva

Av. Jorge Jardim, Praceta 505, Matola

Ph: +258 780 568 /3826

Plasticos da Beira lda Manager: Manuel da Costa Chin

Rua do Algarve 814, C. P. 947 Bairro dos Pioneiros

Ph: +258 328 986; 328 987 Fax: +258 328 988

Greif Managing Director: Henk Son Also President, American Chamber of Commerce

Rua Mateus Sanso Muthemba, 452 r/c Matola

[email protected] Ph: +258 21 492 904 Fax: +58 21 492 739

Topack Managing Director: Joachim de Oliveira Director: Maria Teresa Magalhães

Production Manager: Jorge Guerra

Av. do Trabalo, Box 2006, Maputo

[email protected] mtmagalhã[email protected] [email protected]

Ph +258 21 400281 / 402686 Fax: +258 21 402178b



Sacks

Mozambique Sack, Maputo Marketing Manager: Maraj Nathani

Ph: +82 382 8132

Topa International, Maputo Managing Director: J. Hwang President: Jochua Kang

[email protected] Ph: +258 21 751 622 Fax: +258 21 750 646

BNC Packaging General Manager: Geraldine Sharma

Blantyre, Malawi [email protected] Ph: 674 255

MIC, Maputo F. Geyea

[email protected]

Printing companies

Academica General Director: Fezal Sidat Also Vice President, AIGM

Avenida da Oua, no 50, CP 1215, Maputo

[email protected] Ph: +258 21 400 416/ 402 181/ 404 340 Fax: +402 919 082 30 45 24

Spectrum Graphics Limitada (SGL) Executive Directors: Nilofer Lakhani, Nadya Manji

Av. 25 de Septembro 2604, Maputo

[email protected] [email protected]

Ph: +258 21 325 516 / +258 82 328 3990 Fax: +258 21 303 727

Media Print

Av. Agostinho Neto 326, Maputo

[email protected] Ph: +258 21 487 573 Cell: 82 302 2920

Design companies

Boomerang Rico Rocha

Maputo Ph: +828 225 810

NGO

Technoserve Director: Jake Walter Consultant: Rachide Sultana

Av. Zedequias Manganhela no 267, 5th Andar, Flat 6, Prédio Jat, Maputo

[email protected] Ph: +258 21 326 171/3 Cell: +258 82 464 3690 Fax: +258 21 326 166

Kulima General Coordinator: Domenico Liuzzi

Av. Karl Marx 1452, C.P. 4404, Maputo

[email protected] www.kulima.org

Ph: + 258 21 430 665/ 321 622 Cell: 82 31 27160/ 84 398 3580 Fax: +258 21 321 510



Food producers

Anacardia

Managing Director: Mr.Miranda,

Marketing Manager: Maria dos Santos

Area: Inhambane [email protected] Ph : +82 44 90750

CIM Production Director Alvaro Teixeira,

Via Impasse, Porta No. 76, C. Postal 605

[email protected] Ph: +258 21 720088 / +258 82 3014870 Fax: +258 21 720091

UGC (Union General Corporation) Luciano Sambane

Rua Comandante Moura Braz 31, Box 668, Maputo


Cell: (258) 082 312 922

Van Duzi Managing Director: Chris Serfontein

Area: Chimoio [email protected] Ph: 82 300 3001

Agrogest lda Teresa and Ramiero

Rua do Savane no 1286, Box 1115, Beira

Cell: 82 5 020 540

Cabo Caju lda Distributors: Peter Yannakakis

On pack:

Av. de Angola 1943 /129 Maputo Factory location: Pemba


Ph: 467035 / 6 Fax: 21467037

Mafambisse sugar Production manager: Robert Whitelaw Sugar contact: Açucareira de Moçambique, S.A.R.L.

Rua: Zedequias Manganhela, nº 520 Prédio 1º de Janeiro C.P. 547 - Maputo Beira: C.P. 1121Largo do Buzi nº 6

Mafambisse:

[email protected] Ph: 21-30 31 06 / 31 3635 Fax: 21-42 73 16

Ph: 23-32 90 32 Fax: 23-32 63 65

Ph: + 23 96 0014/11/63/ 16 Fax: 23-96 00 15 / 96 00 68

Packaging Mozambique lda, Nacala Contact: Inácio Junior

[email protected] Ph: 2652 6722 / 2652 6012

Produtos alimentaries Lda (Protal) Managing Director: Alkis Macropulos; Kimon Macropulos

2270 Av. de Mozambique Box 1852, Maputo

[email protected] Ph: 21 475 306 8 Fax: 21 475 218



Soc de Pescas Miradoura, lda Beira agent: Roy Basilio

Soluções lda Carlos Garcia Jaime Langa


Ph: + 258 21 302 040 Cell: + 258 82 320 8550 Fax: + 258 21 302 554

Ph: 258 21 320 621

Government Departments

National Directorate of Industry (DNI)

A department of the Ministry of Industry and Trade (MIT)

National Director: Sergio Macamo

Abilio Cossa

Niall Condon

Oswalda Wilson

Praca 25 de Junho 300 7th floor Box 4052 Maputo

[email protected] [email protected] [email protected] [email protected]

Ph: +258 21 352 646 Cell: 82 303 2710 Fax: + 258 21 352 669

Instituto Nacional de Normalizacao e Qualidade (INNOQ) (National Institute for Standardisation and Quality) Director general: Alfredo Sitoe Department head: Eduarda Mungoi

PO Box 2983 Av. 25 de Septembro, 1179, 2. Maputo, Mozambique

[email protected] [email protected] [email protected]

Ph: +258 21 303 822/3 Fax: +258 21 304 206 Cell: + 258 823 290 730

IPEX – Mozambique Export Promotion Institute

Managing Director: José Jossias

Head of Dept: Cecilia Candrinho

Director: Maria Rita Freitas

Senior Trade Promotion Officer: Gilda Manjate

Senior Trade Promotion Officer Agueda Muchate

Av. 25 de Septembro, 1008 Box 4487 Maputo

[email protected]

http://www.ipex.gov.mz

[email protected] [email protected] [email protected] [email protected] [email protected]

Ph: +(258) (21) 307 257/8 Fax: + (258) (1) 307 256



Ministry of Industry and Commerce

Technical unit for promotion of local production

Director: Olga Gomes

[email protected]

Other Contacts

Laboratório de Engenharia de Moçambique (LEM)

President: Mr. Manoel da Conceição;

In charge of the chemistry lab: Mr. Henrique Filsmore

Maputo [email protected]

[email protected]

Ph: + 258 21 47 52 66

Director: Jake Walter

Deputy Director: Juma Juma

Consultant : Rachide Sultana

Av. Zedequias Manganhela no 267 5th Andar, Flat 6, Prédio Jat Maputo


[email protected]

Ph: + 258 21 326 171/3 Cell: +258 82 464 3690 Fax: + 258 21 326 166 Ph: +258 82 459 7490

CPI – Mozambique National Investment Promotion Agency

Web: http://www.cpi.co.mz

U.S. – Mozambique Chamber of Commerce

Web: http://www.ccmusa.online.co.mz

Associação dos Industrais Gráficos (AIGM) de Mozambique

President: Lucas Chachine

Cegraf: Av. de Angola No. 2732, C. Postal: 1736

[email protected]

Ph: +258 21 491 914 / 491 964 / 493 089 Ph: 84 308 8050 Fax: +258 01 466 560

FRUTISSUL: Associação de Fruticultores do Sul de Moçambique

President: José Alcobia

Matola Ph: 721414

Fax: 721414

CTA Paulo Fumane

Rua de Castanheda 120 Maputo

[email protected]

[email protected]

Ph: +258 21 491 914 / 491 964 / 493 089 Fax: +258 493 094

Associaçao Moçambicana de

Av. 25 de [email protected] Ph: +258 21 308 464


Company Address Email Tel/Fax Armadores de Pesca Industrial de Camarão

Secretary General João Mangave,

Septembro 1123-11 C.P. 4608 Maputo

Fax: +258 21 308 465

Centro de Formação Profissional Metalomecânica (Centre for Professional Metal- Mechanical Engineering Training)

Director: Mr. Carlos Mucareia, Director for Education Program: Mrs. Teodolinda F. O. Fortes

[email protected] Mucareia Ph: 21 466 218 / 82 49 88 570 Fortes Ph : 21 46 62 18 / 82 49 88 570;

Associação Nacional das Empresas Metalúrgicas e Electromecânicas ANEMM

Mr. João Reis

Portugal Ph: 82 62 61 524 +351 21 711 27 40 + 351 96 69 69 476

Instituto Industrial de Maputo Principal: Mr. Carlos Mucareia

Maputo

University of Eduardo Mondelane

Director, Engineering Faculty: Prof Doutor Eng Jorge Nhambui,

Staff member: Dr. Marcos Figueiredo

Staff member: Prof. Doutor Eng. Rui Sitoe,

[email protected] [email protected] [email protected] [email protected]

Ph: +258 21 475 718; Fax: +258 21 475 311 Ph: +254 827356223 Ph: + 258 21 475 319 Fax: +258 21 475 311


Appendix V: Internet references for Mozambique

Study on Food Processing and Agro-Industrial Sub -Sector.

Sector: AGRO-INDUSTRY

Project: Study on Food Processing and Agro-Industrial Sub-Sector, Mozambique

Client: UNIDO and Ministry of Industry and Energy - Mozambique

Funded by: UNDP

Year: 1990 - 1992

Title Email / Web

Government

Confederation of Business Associations of Mozambique (CTA)

Official page: http://www.mozambique.mz Web: http://www.cta.org.mz

Centro de Promoção de Investimentos (Investment Promotion Centre)

Web: http://www.mozbusiness.gov.mz/news.php

Instituto Nacional de Normalizacao e Qualidade - INNOQ (National Institute for Standardisation and Quality)

http://www.sadc-sqam.org/NationalSQAM/Mozambique/SADCMEL_Directory.htm

Mozambique export promotion Institute

http://www.ipex.gov.mz/index_en.html

Packaging in Mozambique

SABCO http://www.ccsabco.co.za/index.php?option=com_content&task=view&id=27&Itemid=46

Nampak http://www.nampak.com/

Yellow pages http://www.b2b-bestof.com/retailers/mozambique_yellow_pages/ http://www.paginasamarelas.co.mz/

General consultants http://www.austral.co.mz/section-ukhome

NGO http://www.technoserve.org

Embassy http://www.usembassy-maputo.gov.mz/

Market research

http://strategis.ic.gc.ca/epic/interne t/inimr-ri.nsf/en/gr109425e.html http://www.researchandmarkets.com/reportinfo.asp?report_id=132430

Economy http://www.theodora.com/wfbcurrent/mozambique/mozambique_economy.html http://www.africaguide.com/country/mozamb/info.htm

Other general references http://www.mbendi.co.za/land/af/mz/p0005.htm http://www.cia.gov/cia/publications/factbook/geos/mz.html http://www.export.gov/ http://www.austral.co.mz/article/archive/15/8


Appendix VI: Reports on individual companies and people visited

Academica

Business

Printing Company for general brochures, leaflets, reports, computer paper. 160 employees. Major customers: mineral water; oil companies

Equipment

Pre -press computer lab

• Thermal 125 Lastra plate maker

• Epson plotter

Product ion

• ‘Heidelberg’ press; 5 colour + varnish

• Computer paper press; x 1 colour

‘GTO’ press; 4 colour

• Guillotine x 4

• 5 x small presses; 1-2 colour

• Folder and gluer; ‘Moll Versa’ (unused); supplier ‘Pressma Trisave’ (Pepar)

• New digital press purchased at IPEX

No SA labels; but have done in the past; sheet fed.

5 colour Heidelberg

General view - production


Had a book assembly line. Recently sold as no Govt work (Education Ministry) has come their way.

Raw mater ials

Paper ex Indonesia, Brazil at 2,5% duty. Inks ex South Africa at 7,5% duty.

Imported books carry no duty and no VAT charged.

Weaknesses

Low skills levels of press operators. This is endemic in the Maputo printing industry. An estimated 1 500 employees in Maputo and 500 in Beira area. This is based on 25 – 30 Maputo companies and 8 to 10 Beira companies.

Opportunit ies

ITC investigate the need for training in printing e.g. Resuscitate the former printing school based at Cegraf, (Maputo based printing company).

Contact: Sachine, President of Associação dos Industrais Gráficos (AIGM) de Mozambique.

Tel: 84 308 8050

Assessment

Largest printing Company in Maputo.

An average printing quality

Contact details

General Director and Vice President AIGM: Fezal Sidat, Avenida da Oua, no 50 CP 1215 Maputo Ph: +258 21 400 416/ 402 181/ 404 340 Fax: 402 919 082 30 45 24 [email protected]

Also interviewed: Adam Sidat

Pre –press computer lab


Agrogest lda

Business

Production of fresh milk and yoghurt for Sofala province; 1 500 litre per day

Packaging

80µm LDPE sachets, flexo printed (ex Riflex) in 250ml (yoghurt) and 500ml (milk). Filled on VFFS.

Future products

Diversify to 2 litre fresh milk in PET; 500ml HDPE bottle; cheese

Opportunit ies

Dairy farm: Maputo milk is imported ex South Africa There are few cows in Maputo region. Agrogest lda is the only packager of fresh milk in Mozambique.

Graphics association: Associação das Indústrias Gráficas (AIGM) de Mozambique

Structure

The Association has one part-time employee and has no own facility or assets. It is hosted by a Maputo based printing company, Cegraf, owned by Mr. Chachine. He runs the Association on a voluntary basis when necessary who, on paper, has a number of AIGM sub groups/ committees reporting to him.

The association operates under the umbrella of the Confederação das Associações Econômicas (CTA). This voluntary organization has a major mandate in education and training in the printing and graphics sector. Funding is from the 40 members via a monthly fee, although not all pay.

AIGM does not receive any other funding.

Main products and markets

The association members are mainly focused on printing and around the country there are maybe 200 to 300 printing industries – small and using litho technology and generally not working with ‘packaging’ directly. Package printing (cartons; self adhesive labels) represents a

Contact details

Teresa and Ramiero

Rua do Savane no 1286 Box 1115 Beira Ph: 825 020 540


small (and occasional) portion of their businesses. E.g. shrimps for export, tobacco, airlines catering service and some food products such as pasta and cake.

Mr. Chachine recognizes this will grow in importance. Out of the 40 member companies, 4 may work with off-set printing of packaging and 4 (sometimes the same ones) with (old) litho technology.

Mr. Chachine’s feeling is that the package carton segment will grow significantly in the next years. E.g. Tea product is becoming very popular nationally and abroad and may grow a lot in the next years. Paperboard is imported and a bit expensive. He believes there is no informal business importing it.

AIGM act iv i t ies.

The members used to get together every month but now -a-days this is more infrequent. The activities they have been working on are discussions with government regarding taxes and legislation for the printing industry.

Train ing

Printing training was centered in the 80’s at Cegraf.

AIGM tried to implement training programs for the graphic industry but had no funds for its implementation. Trainers have had to come from abroad, from either Brazil or Portugal, since there is no one suitable in the country. This has proved to be expensive.

The most recent initiative (2002) was under the project name ‘Poda- cat’ and this folded due to lack of printing company finance about 3 years ago.

Currently the larger companies carry out training ‘in-house’. There are no links being made use of with Brazilian or South African (PIFSA) print training resources.

Future activi t ies

AIGM plans to have its current employee working full time for the assoc iation.

Mr. Chachine will investigate funding from IFC – International Finance Corporation.

Cegraf

The Company supplies 4 colour litho printed cartons to the local airlines to hold passenger meals. They are the only manufacturer of cartons in the country. They also print 4 colour self-adhesive labels. A 5-colour press is expected in 2008.

ITC pro ject

Mr. Chachine recognized as very important the establishment of a packaging information centre, training programmes and the testing facility. The more urgent item is the information centre and training.


He became very interested in hosting the packaging information centre – it could be focused on carton packaging primary and also plastics. Cegraf once operated a flexible plastic operation but it now obsolete. He did not mention where the Centre could be hosted.

He understood ITC’s goals and said that he could help to find someone to run the Centre - but ITC would have to find funding to maintain this person. He himself would give some attention to the

Centre when possible. He is interested in the training programs and literature. He understands the training would have to happen at a companies’ facility. He is also willing to keep contact with the Ministry of Industry and Trade regarding the packaging Centre.

Assess ment

An association that currently seems to be inactive and with not much enthusiasm to change from the Director. More consultations are required with the industry and larger printing companies to resolve the way forward with respect to training.

References

Poda-cat project: Kenneth Gunn, USAID project leader. Neville Huxham was used as a consultant 011 782 1885 / 011 888 5593; fax: 011 888 3846

Anacardia

Technologies/Processes

Cashew nut processor and packer. 83 employees and 5 staff members.

Anacardia are actively pursuing the introduction of 100g retail pack of cashew into Southern African market. The Company anticipates exporting about 16 ton per month in 100g sachets. Other packaging formats have been examined e.g. composite pack; stand up pouch, PET tube. This consumer pack will give about 3 times the profit on their existing 22,68 kg vacuum packed bulk export pack. HACCP compliance still needs to be obtained ex Technoserve.

The company aims to buy its own form, fill & seal machine and use nitrogen flus hing. It has a quotation from Nampak, South Africa and is looking for financial support.

Their main supply of production, packaging and graphics information up till now has been South African company, Jota-Jota. Not an ideal situation for them. GS1 in South Africa has been contacted with regard to bar coding. Anacardia believe that the “Made in Mozambique” label is interesting but the one year to obtain is too long.

One constraint is that local government is demanding the minimum wage for workers in the cashew nuts industry. (The minimum wage is growing 14% p.a. in the last few years.)

Training

Anacardia’s main complaint is lack of packaging regarding packaging in Mozambique and they are fully supportive of a packaging information centre.


They suggest the following items be covered in a short course on foods and nut packaging.

Mould design, successful design to appeal to new markets, brand creation and brand in franchise system, folding carton shapes, international standard type dimensions for packs, colours and identification codes; selecting films, certification or international recognized package.

Cabo Caju lda

Business

Growing packaging and export of cashew nuts. 3 flavours – plain, periphery and salted. The company exports 2-3 tons p.a. in 30g and 100g VFFS sachets.

Material: Met PET supplied from South Africa. PAC carries the “proudly Mozambican” logo.

Contact Details

Managing Director: Mr Miranda,

Marketing Manager: Maria dos Santos

[email protected] Ph: +82 44 90750 Area: Inhambane

Future products

Small catering packs of butter ex dairy in Chimoio

Assessment

This is the only export retail pack I have found on the local supermarket shelves! Way ahead of anything else in terms of presentation.

Cabo Caju’: 3 flavours on retail shelves

Contact Details

Peter Yannakakis Catch a nut Av. de Angola 1943 /129 Maputo [email protected] [email protected] Ph: 467 035 / 6 Fax: 21 467 037


Carmoc (Cartonagens de Mozambique Lda)

Business

The Nampak operation in Maputo is ‘Carmoc’. It is predominantly a Corrugated operation. A small welded can (1litre; 5 litre) line and paper roll operation as well. Corrugated volume: 3 000 ton p.a.

Equipment

• ‘S & S’ corrugator

• 2 printer slotters (3 colour)

• Rotary die cutter

• Stitcher

• Folder gluer

• Sourcing

Paper sourced ex South Africa Mondi 95%; SAPPI 5%. No more paper ex Swaziland used. Duty on imported paper: 2,5%

Starch: African products, South Africa.

Board produced: swb; dwb ‘b’ and ‘c’ flute.

Impregnated waxed board – banana market

Fisheries carton – wet strength Mondi paper

Carmoc

Carmoc: general views inside the corrugating factory


Print ing

Photopolymer plates ex South Africa; locally designed, 3 colour.

Markets

Bananas (up to 5 000 cases per day in season); fish/prawns; cashews;

Breweries; Protal – condensed milk (Angola); biscuits (Angola)

Major customers: SAB; Coca cola; BA Tobacco

Assessment

Opportuni t ies

Potential markets for corrugated shipper growth: grapefruit, lychee and oranges

Citrus: Die cut trays for citrus – estimated savings by Carmoc for customer = 40%. Tray erector required by packers.

Potatoes: Paper bags for potatoes for Maputo market initially. Investment in bag making machine required.

Weaknesses

Current printing machines out of date; poor register

Recommendat ions to Nampak for future capital expenditure

• 4 colour press – to improve colour options and register

• Stretch wrapper for finished product – to improve cleanliness for food products; conveyors for movement of product on floor;

• Corrugator – new cut off end with auto splicing

• Boiler – change to LPG gas and then eventually to natural gas

Carmoc: tinplate and corrugated products


ISO 9000 is being investigated – will take years to implement.

AIDS is taking its toll – about 10 of the current workforce of 200 affected. AIDS awareness program in place.

Centro de Formação Profissional Metalomecânica (Centre for Professional Metal-Mechanical Engineering Training)

Areas of training act ivi t ies

• Hydraulics

• Mechanical engineering – tool making, welding

• Design: Auto-Cad

• Electrical engineering

• Air conditioning

• CNC mould making

• Accounts and Managing

Aim

This technical training centre prepares students for employment in the engineering industry.

There is a large demand for technicians in the local market. Skilled people usually move to South

Africa. Most students are from Maputo; some workers, some graduating students, some school graduated students.

Contact details

General Manager: Mateus Gonçalves. [email protected] 82 301 0530 / 82 309 0280 [email protected] Office Ph: +258 21 400 428 / 21 401 362 Fax: +258 82-401-622 / 21 401 075

Carmoc Beira : 233 02043; 82 3090 280 492/3 Estr. national no 6 Alto Manga


Managing board

Divided into three parties representing workers – OTM, employers – AIM and government – Ministry of Works.

Courses

Curriculum courses, day and night time, from 3 months up to one year. 85% practical training / 15% theoretical. Ad-hoc courses run in the institute.

Teachers / t rainers

Mozambicans. For specific matters, technicians from industry will be invited to give a special class. Diploma: as qualified technical worker. Used as a professional capacity or to improve grade skills.

Partnerships

From 1999 it has established formal partnerships with institutes from Portugal for technical support. Some lab equipment is provided by Portuguese institutions. They may sponsor half the tuition fees of students as well.

Facil i t ies

Organised, clean, well located, may face space problem in a near future. Labs are well equipped. Single facility. A possible next one will be in Beira. A library is not yet available.

Electronics engineering and industrial graphics are not covered in the courses offered, as the demand is small.

Main running cost

Lab materials and trainer fees.

Latest investment

They have received a CNC machine and will start training programs for students in the second semester of 2008. The plastics company, Topack, requires these skills for its employees.

Response to ITC project

Recognizes as important the Packaging Information Centre, the Training Program and the Lab/Testing facility. Would be able to host packaging training according to ITC’s suggested demand. It would be a theoretical course.

How to start: Send a formal intention letter to be presented to the board.


CIM

The Company is a large foods manufacturer with products including flour, biscuits, pasta. Biscuit production, on 11 lines, is at 450 tons per month. Pasta, on 6 lines at 1 000 tons per month. Maize flour is on 2 lines, wheat is on 2 lines. Some of this product is exported. CIM intends to go for HACCP accreditation on the biscuit line in 2008.

Packaging

GND PP is imported from India and South Africa. Italian packaging machines are in place, e.g. Bosch, Pavana. Graphic design is carried out in-house. Outer cartons are supplied by Carmoc and Mondipak. These are of poor quality, the major complaints including incorrect size and poor cutting and trimming and a poor delivery service. Paper bags are supplied ex Nampak sacks, 1, 2, 5 and 5kg sizes. Woven bags are 12,5 and 50 kg ex local companies, e.g. Topa. LLDPE shrink film is sourced from South Africa.

Current duties on semi finished goods, inc luding packaging, are at 7,5%. These are expected to be zero rated in 2008 although CIM has not been advised of this.

CIM makes use of the ‘Made in Mozambique’ label. They invested MT $ 2 000 000 in this project and believe that they are getting no value as the label is not promoted. Their business is affected considerably by illegal importation of goods.

Train ing

CIM has 450 employees in Maputo and 150 in Beira. CIM runs its own training for employees. Their suppliers of packaging equipment give regular operator training on the equipment. It is supportive of the ITC training initiative and offered the use of its ffs equipment for any machine-based training in this area.

Contact details

ANEMM – Associação Nacional das Empresas Metalúrgicas e Electromecânicas / Portugal

Director: Mr. Carlos Mucareia, Ph: 21 46 62 18; 82 49 88 570

Director for Education Program: Mrs. Teodolinda F. O. Forte Ph: 21 46 62 18; 82 49 88 570 [email protected]

Mr. João Reis +82 62 61 524 / 351 21 711 27 40 +351 96 69 69 476


CIM are supportive of the information resource centre and the test lab. They currently have any required testing of packaging materials carried out in SA. This includes colour variation, delamination, tear, adhesive test, film thickness, ink adhesion, and heat salability.

Future project

Low cost fortified foods ex CIMs pasta and biscuit lines are being considered for the local market. Reference: Themos Ntasis, International Relief and development; [email protected]

There are about 7 other smaller biscuit manufacturers in Mozambique.

Nat ional Di rectorate of Industry (DNI)

ITC ini t iat ive

A mid week report back on the progress of this feasibility study was given. DNI offered the use of a room as an information centre. DNI was expecting to host the packaging information centre.

Contact Details

Production Director: Alvaro Teixeira, [email protected] Ph: +258 21 720088 / 82 3014870 Fax: +258 21 720091 Via Impasse, Porta No. 76, C. Postal 605 Área: Matola

Contact Details

A department of the Ministry of Industry and Trade (MIT) 1502, 25 de Setembro Av. Maputo Box 4052 Maputo

Sergio Macamo; [email protected] Ph: +258 21 352 691 Fax: 258 21 327 892

Abilio Cossa [email protected] Niall Condon [email protected] Oswalda Wilson [email protected]


Mondipak (Formerly E mbalagens Holdains lda)

Business

Formerly Holdains, this 90% Mondipak owned company produces about 1 000 tons p.a. of corrugated board.

Slotting and printing of corrugated board. Mondipak, South Africa is the owner of this small business. 39 employees.

Market size estimates: Carmoc 3 – 4 000 tons; Holdains 1 000 ton.

There are 2 other smaller corrugated converters who import their raw materials from the Far East.

Equipment

Flexo press x 3 colour with slotter

Letterpress x 2 colour with slotter

1 x rotary die cutter

2 x flat bed die cutter

Folder gluer

4 x stitchers; wax impregnator.

Dies and printing plates made in South Africa

Materials imported

SWB ‘b’ and ‘c’ flute; DWB cut and in flat form; finished shippers

Duties: Imported board at 7,5%; inks 2,5%. Interesting to note, banana cartons are at 0% duty as the boxes are viewed as ‘in transit’ through Mozambique once filled with bananas.

Source: Nampak, Nelspruit, South Africa.

Products

RSC and die cut tray styles in up to 3 colours. Certain products are imported complete and sold ‘as is’ e.g. banana telescopic carton.

Flexo press with slotter

General view


Major customers include producers of wines; spirits; bananas; soap; mineral water and ‘Unilever’

New equipment proposed: 1x flexo printer

Staf f ing

There are about 25 staff directly in production; some of whom have many years experience but no formal qualifications; some unreliable as far as time in the factory and many poorly trained.

Import duties for board and inks are to be dropped in 2008 making for more competitive pricing from Mondipak. Carmoc, the much bigger opposition company has been paying no duties on their incoming paper supplies. Artists in Nelspruit deal with artwork; their Johannesburg Company produces the stereos (about 1 week to supply).

In format ion centre

The Company is very supportive of an information centre being established.

Train ing

The Company has been using training facilities offered by their South Africa holding company, but there have been language problems enc ountered. Local training would be very machine specific and there would not be a large enough market for on the job training supplied by another provider. However, general courses in packaging for Mondipak and their customers (e.g. buyers), dealing with, for example, the protection and sales appeal aspect would be useful.

Test ing

The Company carries out no formal testing on the board; no customers are requesting this. There is a limited amount of assessment via custom stacking tests. There are no distribution tests e.g. vibration, carried out. These are requested and, if there were a need, their Company in South Africa would assist.

The fu ture

The market for corrugated is accelerating, mainly due to increased fruit packaging requirements. They are running at full capacity at present, and that is just for the Maputo based market. Supplying new banana and pineapple plantations are a large part of this growth.

A rotary die cutter with 2-colour press is expected ex Mondipak South Africa during 2008.There is a possibility of a corrugated plant being installed in the longer term.

Threats

Clearance delays at border; weakening exchange rate. Illegal importation of corrugated boxes is a major headache and is affecting profits. This will have to be addressed.


Greif (Van Leer)

A USA based Company with 70 employees established in Maputo 1962 and producing:

• Metal products: drums 1 to 210 litre

• PET bottles

Metal

The major product is a 90-litre drum for export to Karbochem, South Africa. They are able to produce a variety of sizes in their small plant; including food size cans. One colour screen-printed. Other products: vegetable oil cans, paint drums and pails.

PET

Bottles and jars, either from preform (hand blow) or ISBM. Range: 350 ml to 5 litre. Main products are for vegetable oil and mineral water.

• Machines: hand blow Wel Li (China) x 5

• Nissei injection moulding machine

New equipment: another Nissei m/c is on order.

Moulds are imported cheaply ($500-600) from China. There is no mould design or mould making facility – they rely on the parent Company in South Africa

Raw mater ia ls .

Sheet metal (bulk buy via parent Company) and PET resin are sourced from South Africa. PET preforms ex China

Contact details

Manager: Nuro Mulá Av. das Industrias, 1862 Machava Box 303 Maputo Ph: +258 21 750 043 / 372 +248 82 301 2230 Fax: +258 21 750 044 [email protected]

Greif


Re-granulated PET, ex their plant only, is sold to South Africa. They only use virgin PET in their plant.

There is a 2,5% tariff on imported goods. General company tax rate: 32%

Opportunit ies

• Further extension into water packaging. An injection moulding plant in Nampula is planned; 1- 1,5 litre water bottles.

• Forming alliances with customers so as to ensure continued market for this products

Threats

• Illegal imports of finished products and in PET pre-forms ex China were highlighted. An industry – Government task team, set up 7 months ago, has been successful in limiting and stopping these businesses. In some cases, closing them down in a day.

• There is a general attitude of tax avoidance in Mozambique; particularly payment of VAT (at 17%)

• Import clearance delays at the Mozambique South Africa border are a continual headache. There seems to be little support from Mozambique customs authorities for release of imported goods. Greif is opening up a bonded warehouse to minimise delays.

Assessment .

Limited packaging range in a well controlled business

Implastic A privately owned plastic business running for 17 years. 3 technical staff and 25 employees.

Products: A range of injection moulded and blown containers; mineral water and oil containers being the major products.

Processes: blow moulding; injection moulding; ISBM

Contact details

Managing Director: Henk Son Matula President, American Chamber of Commerce, Rua Mateus Sanso Muthemba, 452 r/c Ph: + 258 21 492 904 Fax: +258 21 492 739 [email protected] www.ccmusa.co.mz (Henk Son also current vice president, CTA)


Equipment

• Blow moulding: 5 x Bekum processing PVC, LDPE, HDPE and PP

• Injection moulding: 3 machines – 180 ton, 400 ton and 600 to n

• ISBM blower x1: PET containers to 5 litre

General view: blow moulding General view: injection moulding

Raw mater ia ls sources:

Malaysia, Taiwan, and Korea. Not South Africa – too expensive.

PET pre-forms: South Africa. No duty on raw materials.

Moulds are ex Portugal and Portugal

Opportunit ies

Opening up ‘hole in the wall’ operations with several mineral water and vegetable oil bottle customers in the North.

Crate manufacture – they are quoting on business with Coca cola.

Threats

Illegal importation of packed products: e.g. vegetable oil

Some of the injection moulded product range

Some of the blow moulded product range


Assessment

Their business is in trouble running at 20 % of capacity; blow plus injection moulding, The PET market alone is in growth…other product lines too small for Mozambique alone. For example, their contract with BP to supply 5 litre HDPE oil containers cancelled due to BP sourcing from South Africa. Unused moulds for 10 and 20 litre buckets; 5-litre paint can with lid; PP closures. One machine running at time of visit.

No bottle / container printing.

No flip top PP cap mould

No mould design and manufacture

Industrias Manica

Business

Conversion of plastics – film, bottles, and injection moulding.15-20 ton per month claimed. 32 employees; printer not on full time staff.

Equipment

• Blown film extruders x 4

• Blow moulding machines x 2 (one Bekum)

• Injection moulding machines: 2 functional (170 and 150 ton); 4 non-functional

• Flexo presses x 2. One 4 colour and one 2 colour.

• Small heat sealers

Raw mater ials

Polymer sourced ex South Africa; closures ex Zimbabwe

Contact details

Av. Jorge Jardim Praceta 505 Matola Ph: 780 568 / 382 Directors: Nelson and Carla Silva

Injection moulding equipment – old and 4 machines not working


Products

30µm – 120µm bags on roll – sugar bags, textiles

Containers: 350ml bottles (juices) to 5 litre, handled containers (oil)

Injection moulded: closures

Assessment

Customers have been lost in the juices and oil markets. One machine running at time of visit. The Company is struggling.

Contact details

Manager: Yoaõ Sacuzi Rua da Extremadura 952, Beira Ph: 233 533 13 Owner: Chariff: 82 387 8978

Insti tuto de Industrial de Maputo

Principal: Mr. Carlos Mucareia contact details: Cossa, DNI

Public institution. Medium-level / technical education center. This is the largest technical institute for medium level -courses in Mozambique.

Technical programs offered

• Mechanical engineering

• Electronics: electrical systems, heavy current electricity, and illumination

• Civil engineering: hydraulic, construction, roads

• Chemical engineering: analysis (+ lab analysis), industrial processes, raw-material treatment

Courses

3 years length including a 3 month of internship at companies. No contact with packaging producer companies and end-users as yet. Ad-hoc courses are run, especially in the mechanics and electrical system areas, if resources available.

Number of students

Day courses – 833 / Night courses (mostly for workers) – 637.

Mechanical engineering laboratory


Ful l t ime teachers

Mechanics 90%, Electronics 80%, Chemistry 80% and technicians from other institutes.

Library

A small library is available with technical literature. Students can take books home.

Campuses

The main one is in Maputo and a smaller one is in Beira.

Financ e

Financed by the state and tuition from students.

Funding program

Available for the hydraulics program only.

Partnerships

Could have ITC sponsoring some students and having them working for the packaging industry when graduated. Has already partnership with other technical bodies. Does not have formal partnership with any institute from Portugal.

Labs

Mechanical: basic equipment available for students. Chemical: sparsely equipped.

Institute of standards and quality (INNOQ)

(National Institute for Standardisation and Quality)

The national authority for legal metrology is Instituto Nacional de Normalizacao e Qualidade (INNOQ) and is the custodian of national standards of measurement. The newly appointed Director is Alfredo Sitoe (formerly Director of Ministry of Industry and Commerce.

Summary of discussions held:

• Revised regulations on labelling will be implemented this year as a result of discussions and mutual agreement with SADCC countries. No major implications for local product labelling.

• HACCP has only been implemented in the fish and cashew nut export business.

• ISO 9000 has been implemented in 7-8 Companies – all non-packaging.

• Legal units of measurement: International System of Units (SI). No Test facilities available.


• Laboratories are used at Ministry of Health and Ministry of Agriculture, Maputo.

• Expressed interest in a ‘packaging for export’ seminar

Responsibi l i t ies of INNOQ

INNOQ is concerned in general with:

• Standardization: 72 standards have been issued to date, including a labeling standard.

• Metrology: calibration, length, mass, compression

• Certification: scheme for product certification; accredited labs required, (ISO 17025)

• Technical barriers to trade

• Acquire and assure maintenance, conservation and updating of primary and secondary measuring standards

• Supervise the feasibility of the use of measuring equipment

• Assure accreditation and coordinate national network of Metrology Laboratories

• Assure and update the national measurement system, taking into consideration the recommendations, conventions, international conferences etc., which are endorsed or ratified by the Republic of Mozambique

• Approve and assure application of regulations related to Metrological Centres

• Accreditation of inspection staff

• Promote and coordinate the representation of Mozambique in regional and international metrology institutions and assure the institutional link with their secretariats

• Promote the establishment of agreements with regional and international metrology centres aimed to beneficiate the use of their metrology centres

• Promote research activities within metrology scope.

Instrument Calibration and Evaluation Systems: At present there are no facilities for calibration of instruments.

Legal metrology practitioners: At present there are only the trade measurement inspectors with basic education employed by the City Councils.

Packaging

At present there are no legal metrology requirements for packaging. At a recent

Ministerial meeting ‘packaging’ was identified as one of the barriers to trade due to it currently not meeting trade criteria that included attractiveness and correct material selection. There is one mobile metrology lab in operation in the Maputo area staffed by a team of 7. Plans are in place to have INNOQ represented in each of the major provinces.

Technical personnel are all with degrees. Currently there are 2 in-house training projects, one funded by World Trade Organization (WTO). Metrology training (2 weeks) is being carried out by a Brazilian similar body - INMETRO.


INNOQ has a room allocated to training, holding about 10. Details of the labeling standard are to be obtained.

INNOQ is in the feasibility stage of a redevelopment. $300 000 has been allocated to drawing up new building plans that will include lab space for metrology, microbiology for foods, chemical and physical properties and assessment of construction materials. Capital required for this major project will amount to $10 million. Government has indicated that they are prepared to find 46% if donors can raise 54%.

Assessment

INNOQ is under resourced for hosting a packaging information centre. As a training location they can offer a spare room, laptop and direct projector. In the long term a packaging test centre could possibly be located with them. Synergies include technical expertise in lab operation; ready supply of technical personnel; access to legislative requirements including labeling, transportation and food requirements e.g. HACCP. It is recommended that communication continue with INNOQ with regard to their planned developments and their search for donor finance.

Packaging: At present there are no legal metrology requirements for packaging.

Contact details

Instituto Nacional de Normalizacao e Qualidade (INNOQ) (National Institute for Standardisation and Quality) PO Box 2983Av. 25 de Setembro, 1179, 2. Maputo, Mozambique Ph; +258 1 303822; +258 1 303823 Fax: +258 1 303658 http://www.sadcsqam.org/NationalSQAM/Mozambique/[email protected]

Director: Alfredo Sitoe Cell +258 823 290 730 [email protected]

Department head: Eduarda Mungoi [email protected]

Inst i tute for the Promotion of Exports (IPEX) IPEX is a non-profit government organisation with the purpose of encouraging exports via market identification, promotion and dissemination of relevant trade information.


IPEX plays a pivotal role in the gathering, storage and transmission of trade related information in the country. International assistance has been supplied by ITC (under JITAP programme) and Centre for Promotion of Imports from developing countries from the Netherlands (CBI). External links have been established with other Southern African counties, various NGOs and Government departments. An External Trade Manual is to be published early 2008.

Structure

There is a staff of 40 in Maputo; 5 in Beira and 5 in Nampula. Formerly in 3 divisions, IPEX now has been restructured to 4:

• Market and product development

• Trade information

• Planning and statistics

• Support division – HR and administration

Services provided by IPEX

• Satellite offices in Beira and Nampula

• Database of exporters

• Intranet facility

• A newsletter emailed twice a month to its members (+-1000)

• A market alert service to members via SMS

• An information library with 3 information workstations available to members. Resources include photocopier, scanner, and printers.

• A nearby training centre for running of seminars. 10 rooms for 25 people each. Under utilized at present.

• Representation of local business and industry at International trade shows

• A three-month / 5 modules training program targeted at medium-size exporting companies; supported by Invent/Germany.

• EuroGap program for food certification: the aim is to build capacity at one company to export certified food product to Europe.

ITC ini t iat ive

IPEX would welcome the establishment of a packaging resource/ information centre and would be able to provide facilities for training /seminar sessions. A ‘packaging/printing’ directory would be a useful addition to their information resources and they would be able to assemble some required data for this in-house.

Some current food products exported:

• Cashew nuts to India in bulk for re-processing there


• Prawns to Japan, Europe

• Grapefruit to Europe

• Bananas to SA

• Coconut oil to Switzerland,

• Tea to Malawi, Zimbabwe

• Sunflower cooking oil

Potential exports or exports that have been tried in the past: mineral water

Laboratório de Engenharia de Moçambique (LEM)

LEM is a public institution, (“the eyes of the State”), that works for the public and private sectors. It is responsible for the accreditation of other laboratories and for the analysis and tests on materials produced in Mozambique.

Areas of analysis

Chemistry (including plastics, inks and varnishes), mechanical and physical e.g.: concrete, steel, and water. Examples of ad-hoc work for private companies are analysis for concrete, steel, soil, geological prospecting and chemicals.

Employees

60 people with technical skills and 7 engineers: chemistry 2; materials 3; civil construction 2.

Contact details

Director General: José Jossias [email protected] Head of Dept Cecilia Candrinho [email protected] Director: Maria Rita Freitas, [email protected] Avenida 25 de Setembro, 1008 Box 4487 Maputo Ph: +258 21 307 257/8 Fax: +258 21 307 256 [email protected] http://www.ipex.gov.mz

Chemical laboratory, LEM


Willing to hire more.

Future investments

Equipment acquired and arriving on March 08: physical-mechanical analysis of paper, plastics and wood. A list of new equipment that is being bought was provided.

Accredi tat ion

LEM does not have international accreditation such as ISO 9000. Will apply in the future for some areas of the lab. The testing follows international standards such as ISO, BS, SABS and others.

Relat ionship with INNOQ

INNOQ is the institute for regulation and standards. LEM is the institute for quality control, including the verification and accreditation of INNOQ tests, when they come to do it. LEM is the one to make all analysis that will be included in INNOQ regulations.

Relat ionship wi th universi ty

Students may use the lab for learning and training. Testing usually takes one week, including written results/analysis. The lab operates throughout the year.

Comments

LEM has the space and infra structure to accommodate new testing equipment. They also have technically competent personnel to run and maintain such equipment.

They are interested in hosting a packaging lab, inside their chemistry facility. They would provide two technicians to run the lab and to go through specialized training.

First step for a partnership: sending a letter of proposal to Mr. Conceição detailing the intended partnership.

Mr. Henrique will send us by e-mail a list of clients with whom we can get references.

Mr. Henrique can provide a list of charges for the different analyses currently offered. This would serve as an indicator of charges to the packaging industry for testing services.

Contact details

President Mr. Manoel da Conceição; Ph: +21 47 52 66 [email protected]

In charge of the chemistry lab Mr. Henrique Filsmore [email protected]


Mafambisse sugar

Business

Sugar production from sugar cane. One of 4 sugar companies operating in Sofala province (near Beira). Owners: Tongaat-Hullet of South Africa. Sugar markete d by DNA for all 4 companies. Brand name: ‘Acuçar’. 2005 production: 50 000ton (50kg /1kg = 50 /50). Rail link to Beira port.

Packaging

1 kg polyethylene bag, printed, ex Durban, South Africa 20 of these are wrapped in LDPE baler bag.

50kg woven polypropylene bag, 100gsm, stitched at both ends, unprinted

New packaging to be implemented: the woven PP bag to be given a loose LDPE liner. Bag to be one colour printed. Stitched closed. Sourced from ‘Mozambique sack’, Maputo

A bulk bag (e.g. 1 ton) would be preferred but there are logistical problems downstream e.g. handlingat port.

Packaging l ine

1kg: VFFS (‘Hamac’) machine x 3

1kg: Hand filling (about 50% of 1kg production)

50kg: fill and stitch close

Production Manager: Robert Whitelaw

3 VFFS machines on 1kg sugar line

Hand packing of 1kg sugar. Slow, but more reliable than old machines


Plasticos da Beira lda

Business

Conversion of plastics – film, injection moulding, pipe – mainly using recycled materials

About 10 ton per month converted. 33 employees

Packaging contacts

Mozambique sack, Maputo Marketing manager: Maraj Nathani Cell: 82 382 8132

Topa International, Maputo Managing Director: J. Hwang, [email protected]

BNC Packaging, Blantyre, Malawi General Manager: Geraldine Sharma 674 255 [email protected]

MIC, Maputo F. Geyea [email protected]

Sugar contacts

Açucareira de Moçambique, S.A.R.L. Rua: Zedequias Manganhela, nº 520 rédio 1º de Janeiro C.P. 547 - Maputo Ph: 21-30 31 06/31 36 35 Fax: 21-42 73 16 [email protected]

Beira C.P. 1121 Largo do Buzi nº 6 Ph: 23-32 90 32 Fax: 23-32 63 65

Mafambisse Ph: 23-96 00 14/11/63/16 Fax: 23-96 00 15/96 00 68 [email protected] Contact: Inácio Junior

New PP 50kg bag for sugar. Previously not printed.


Equipment

• Blown film extruders x 2 (one Battenfeld)

• Carry bag extruders and makers x 4

• 100 ton injection mould machine

• The blown film line doubles up as a pipe extruder with a switch of the die granulator.

NB no pelletiser

Raw mater ials

Sourced worldwide. Not currently importing – small quantities bought from another converter. Uses mainly recovered plastics from local users e.g. Shoprite, sugar factories, Municipality

Products

12 – 60µm film for sachets and HDPE carry bags

Thicker LDPE film for general coverings, DPC

Injection moulding: cups, plates. No packaging items.

Assessment

Not in main line packaging. No printing offered. The only plastics recycler in Beira.

No pelletiser. Little of plant running at time of visit.

Contact details

Manager: Manuel da Costa Chin Rua do Algarve 814C. postal 947 Bairro dos pioneiros Ph: Beira 328 986; 328 987 Fax: Beira 328 988

Produtos alimentaries Lda (Protal)

Business

Protal is the only producer of condensed milk products and do so under licence from Nestle. The packaging used is a 200ml can with litho printed wrap around and glue label. Their small plant is HACCP compliant and is under strict scrutiny from the overseas parent company.

Blown bag lines. Pipe is extruded from recycled materials


Packaging specifications and design are as per Nestle requirements.

Products produced: Nestle Condensed milk; cheese

To be launched 2006: Cremora; Maggi soup in a paper / aluminium / ldpe lamination using VFFS pack.

Sourcing : All primary packaging is and will be sourced ex Nampak, South Africa. Laminations and cans not made locally. Locally sourced packaging: outer corrugated tray ex Carmoc, Mozambique; shrink film for outer ex Topack, Mozambique.

There is no incentive to purchase low technology label materials locally – due to higher cost and poorer quality.

Duties on importation: raw materials e.g. polymer, sheet metal 2,5%

Intermediate goods e.g. labels, boxes: 7,5%

Dispensation can be sought and obtained however for certain products – as is the case with Protal’s packaging imports.

SADC duties will be reduced to zero at the following dates:

Products from South Africa intermediate goods: 2008

Finished goods: 2015

Products from other SADC countries: finished goods: 2012

Intermediate goods: 2008

Other issues.

Importation of similar and counterfeit products affecting business e.g. copies and competitor to condensed milk – sold as condensed milk but not adhering to food defined category. Recently private sector organizations have been working together with various government entities on a task-force team in an effort to combat intellectual property right infringement and related public safety issues.

Crown cork

Board member: Alkis Macropulos

Producer of crown closures for soft drinks (50%) and beer products (50%).

Protal’s condensed milk

These counterfeit products found on retail shelves


This factory is closing during 2006, due to SABCO (soft drinks) sourcing their requirements from India at $270 per box versus $400 local price.

Riplex

Business

Injection moulding; blow moulding; ISBM; blown film. A privately owned small plastics company begun in 1995. One setter and 30 other employees.

Products

• Blow moulded bottles and containers, 100 ml to 5 litres. Many smaller bottles fall into ‘cosmetics’ market; larger e.g. 5 litre vegetable oil can

• Injection moulded articles –in the packaging area are ‘closures’ for all the Company products

• ISBM bottles and jars

• Film on roll or separate; bags; carrier bags – 6-colour print; s/w material. LDPE 40 to 200µm; HDPE to 80µm

Mater ia ls converted

LDPE, HDPE, PP, PVC, PET

Supply sources: Polymer: Korea, Dubai. Dies, moulds ex Far East; plates and screens ex South Africa

Duties: Polymer 2,5%; polymer from South Africa 0%; perform (= semi finished goods) 7,5%

Contact details

Managing Director: Alkis Macropulos and Kimon Macropulos 2270 Av. de Mozambique Box 1852, Maputo Ph: 21 475 306 8 Fax: 21 475 218 [email protected]

Bag maker


Equipment

• Blow moulding x 3 Parkers: 2x single station, 1x double station

• ISBM blowers x 4

• Injection moulding 1x 240 ton

• Blown film extruders x 2

• Flexo press (6 colour)

• Screen printer (1 colour)

• Hot foil stamp re-granulator and pelletiser

Planned: 2 station blow moulder on order

Staf f ing

There are 28 employees. Operator numbers for the processes are: Blow moulding : 10; injection moulding: 2 ; blown film: 4 ; recycling : 1 ; There is no formal QC department.

Riplex produces a variety of plastics goods…bottles, jars, Jerry cans, film and offers simple printing on to these. Flexo x 6 colour; screen x 1 colour. There is no in house tool making. Moulds are sourced ex Durban and Portugal, Taiwan. He foresees difficult market conditions ahead as tariff barriers on imported SA plastics will be dropped in 2008.

Test ing

No formal testing of incoming raw materials or of final product is carried out. Lab testing would be a help in identifying flow characteristics of various grades of polymer e.g. MFI test.

Train ing

There is a low level of appropriate skills and knowledge for his workers. Mechanical,

Electrical and Chemical engineers that come out of university have no specific knowledge for working at a plant. Training is on the job carried out by the owner and the 5 supervisors. Personnel undergo a 90-day evaluation period.

One suggestion is to improve the polymer content of the local university chemical engineering course.

Main t raining related di f f icul t ies at the plant

Supervisors have no authority, have no skills on supervision, and cannot maintain quality of work, products and organization of the plant. Workers have no quality consciousness and have little respect for Mozambican supervisors.

6-colour flexo press unit


ITC ini t iat ive

Riplex recognizes as extremely important the Packaging Information Centre, the Training Program and the Lab/Testing facility. They are supportive of a series of plastic oriented training courses e.g. plastics / polymers chemical properties; plant organization, packaging, finishing, and quality control. He would be able to release appropriate production machines for such a course for his staff only. Blow moulding is the major activity and this should be addressed first via in house training of the supervisors.

He can also send employees to participate in a week training program – even if in SA. For example: 1 operator from silk printing, 2 operators for flexo printing, 4 operators for blow mould machines, 1 for injection mould and supervisor. Total: 1 supervisor and 8 workers.

Assessment

Strengths

Variety of technologies and products made on relatively new equipment; recycling capability; hot foil stamp; 6 colour film

Weaknesses

No mould making or maintenance; 1 colour screen only; no direct exports. Printed bags are exported, however, as consumer goods - ‘salt’ bags.

Company is surviving well on its diverse product range.

Contact details

Ragendra Dhirajlal Av. de Mozambique 1548 Ph: + 258 21 475 054 +258 82 301 0100 Fax: +258 21 477 564 [email protected]

Soc de Pescas Miradoura, lda

Business

Fishing – prawns for export to Portugal. Operate a fleet of 9 trawlers >3 miles off the Mozambique coast. Approximately 1 000 ton per year. Brand name: ‘Frip’ in 800g, 1,5 and 2kg packs.

‘Carmarão’ = prawn; ‘Gamba’ = shrimp


Shrimp and prawn in SBS imported board printed in South Africa

Packaging l ine

On board trawlers, prawns are sorted by size, packed and frozen, initially –40 ºC, then kept at –23-25ºC. Exported direct to Portugal.

Poly coated SBS board, litho printed and supplied by Nampak C&L, South Africa.

Beira agent: Roy Basilio

Soluções lda

Business

Exporter of prawns; location: Maputo

Currently 30 ton p.m. exported frozen in 2kg paperboard 2 piece carton ex NC&L, South Africa. Operate as a cooperative.

Brand name: Sol Mariscos (shell fish). Plan to open 2nd factory in Beira. Total exports ex Mozambique are about 9 000 ton p.a.

Opportunit ies

• Are seeking assistance: Import replacement of the carton with local printer. Carton window?

• Clear plastic lamination for smaller retail pack.

Issues of hygiene, labelling, graphics, pack mass, pack structural design discussed.

Fol low up

JB to obtain information on: SBS board supply; MAP for plastic pouch alternative; material for plastic pouch.


Contact details

Carlos Garcia [email protected] Ph: +258 21 302 040 Cell: +258 82 320 8550 Fax: +258 21 302 554

Jaime Langa Ph: +258 21 320 621 [email protected]

Spectrum Graphics Limitada (SGL)

Business

Printing of promotional materials – booklets, leaflets, and labels. 64 employees.

Training is all in-house using overseas skills to assist. They have undergone extensive expansion in their current premises. They are not members of the local Graphics association as they feel it’s not in their best interests.

Equipment

• Pre-press computer lab

• Plate maker

Produc t ion

• Heidelberg speedmaster 5 colour and coater (new)

• 3 x 2 colour presses (Roland 200)

• 3 x 1 colour presses

• 3 x guillotines

• 2 x folders

• Stitcher / gatherer

• Perfect binding

• Rotary die cutter – Heidelberg

• Laminator

Heidelberg 5 colour press

2 colour presses


Raw mater ials

Paper ex South Africa. Inks, varnishes ex Japan

2,5% duty; this Company has been exempted.

Future

• The Company has identified the need for printing of paperboard cartons – non-food contact. e.g. tea, cigarette, toothpaste. They plan to purchase appropriate equipment to run carton production line.

• Digital printing to be installed.

• A specially fitted room has been constructed for ‘security’ printing – a new area of business.

• Flexo and CTP also to be investigated.

Assessment

A well run, proactive Company. The directors have run a similar Company in Canada and know the quality requirements of overseas markets first hand. Their prices are higher; their quality is to match.

Contact details

Executive Director: Nilofer Lakhani

Executive Director: Nadya Manji

Av. 25 de Septembro 2604 Maputo Ph: + 258 21 325 516 Cell: +258 82 328 3990 Fax: +258 21 303 727 [email protected] [email protected]

Technical unit for promotion of local production

Started January 2006, the unit is tasked with promotion of local and export goods. The ‘Made in Mozambique’ label is awarded to compliant manufacturers and services.

Categories of compliance include environmental, safety, labour relations, and social responsibility.

Products currently include citrus, cashew nuts, tuna, and prawns

General view pre-press


Volume of prawns exported: 9 000 tons p.a.

Contact details

Director: Olga Gomes Ministry of Industry and Commerce [email protected]

Technoserve Business

NGO with the aim of assisting growth of new businesses in wood, horticulture, cashew and tourism sectors. 28 employees with offices in Maputo, Chimoio, Nampula This NGO provides technical; and marketing assistance to new and established agro food producers. The markets are small and include: bananas (Nampula; South of Maputo) green bananas (Gorongosa) mangoes (Manica) and pineapples (Sofala). The greatest growth potential is seen in the banana market.

TechnoServe's work in Mozambique involves:

• Identifying specific industries that, if revitalized, could provide jobs for rural residents and a market for small-scale farmers;

• Identifying specific "high-value" products that could give small-scale farmers a competitive edge in domestic, regional or international markets;

• Locating entrepreneurs with compelling businesses ideas of relevance to the rural poor, and helping them to build successful businesses

• Forging strategic alliances with business, civil society and government leaders involved in rural economic development.

Established: 1997 Staff: 28, with offices located in Maputo (headquarters), Chimoio and Nampula Focus: Cashew and Horticulture Industries, Mentoring Entrepreneurs and Businesses Number of Business Receiving Assistance: 13

Projects of packaging interest

1. Agro Industrias Association (AIA) in Nampula region. Cashews are being exported in bulk to a distributor in the Netherlands under the “Zambic” brand name. Suitable warehousing at Nacala port still to come. Exports amount to about 2 container loads per week. (No tonnages supplied).

Contact: Antonio Miranda; Cell: 82 609 4660 [email protected]

2. Macia Castonhade Mozambique near the village of Macia, south of Maputo.

No brand name as yet. Contact Mussa (ex South Africa); cell: 82 301 7100


Packaging is an 11,48kg bulk pack in a clear plastics co-extrusion (‘Cryovac’). Material ex Huhtamaki, South Africa. The packs are carbon dioxide flushed to extend shelf life. Label is self adhesive ex South Africa. Two of these ‘bulk packs’ are packed per outer case, supplied by Carmoc, Mozambique. Comments again about poor quality from Carmoc.

HACCP compliance by end of 2006 and thence onto ISO 9000 are the quality aims for these projects. Rachide Sultana is undertaking this. Shelf life tests are currently being carried out. No local distribution of product.

3. “Citrun” fruit exports to Europe. Used to be in partnership with Cape Span, South Africa.

Contact: Paulo Negroin, cell: 82 31 75 550 [email protected]

No dried fruit projects are underway by the NGO, Technoserve. Train ing

Technoserve provide on the job training to food processors. There is a possibility of introducing ‘packaging’ related training alongside their existing HACCP training. There are too few growers to warrant separate training/education in packaging. In the ‘packaging’ domain, growers primarily require market related rather than technical information e.g. packaging formats available for the product, sales appeal, and sources of supply.

Other market related information:

• Canning and juicing is prohibitive because of rising labour costs; e.g. compliance to minimum wage.

• ‘Chiquita’, international marketer, producer and distributor of fresh fruit, processed fruit and vegetable products, now have offices in Maputo.

• A fruit juice (mango) manufacturer is renovating premises to start up in Beira

• April – October is the dry season and small quantit ies of fresh fruit products are available

• In general, consumer awareness in Mozambique of product and packaging is poor.

• Technoserve have found much Government tardiness with respect to running test labs in the country. They advise private sector participation in their operation.

• Pineapple production: There is little strategic planning resulting in increase of production and decrease of quality.

• Cashew: No national standards are employed

Weaknesses

The tribes in Mozambique are not all Portuguese speaking. A major problem in sustainability of the systems implemented is finding suitable local candidates to be trained for technical positions e.g. QA.

Opportunities

Technoserve could be approached to supply speaker(s) for the upcoming ITC seminars e.g. HACCP


Contact details

Director: Jake Walter [email protected]

Deputy Director: Juma Juma [email protected]

Consultant : Rachide Sultana [email protected] Ph: + 258 21 326 171 /3 Fax: + 258 21 326 166 Cell: +258 82 464 3690

Av. Zedequias Manganhela no 267 5th Andar, Flat 6, Prédio Jat, Maputo

Topa International lda

Technologies/Processes

Film extrusion; circular loom weaving; stitching; flexo printing (1x 4 colour; 2x2 colour; 1x1 colour)

The Company manufactures woven polypropylene bags, +- 75gsm, supplying in excess of 50% of the market requirements. They make 10 million p.a., this constituting more than 50% of the local market requirements. Their customers are typically manufacturers of sugar, maize, flour, and rice. An estimated 30% of their bags are eventually exported by their customers. They employ 130 operatives. 5 on maintenance and 10 in administration. Korean owned. The Company uses Korean sourced engineers to head up maintenance. About 16 operatives are used on the extrusion process and 8 to run the printers.

Train ing

None is formally carried out, the major problems cited being the Korean- Portuguese language barrier and the ‘lack of passion’ to learn from the locals.

Qual i ty contro l

This is ‘hands on’ by experience Korean technicians. No ‘testing’ is involved.

Assessment

A Company supplying a low cost product at the bottom end of the packaging market. Their interest in ‘packaging’ and training of staff is zero.

Contact Details

President: Jochua Kang [email protected] Ph: +258 21 751 622 Fax: 258 21 750 646 Area: Machava, Maputo


Topack This is Mozambique’s largest plastics company being the major producer of blow moulded, injection moulded and blown film products.

Their product range includes:

• Blow moulded: pails, cans, bottles, and water containers up to 30 litres. HDPE, LDPE

• Injection stretch blow moulded bottles: PET (no soft drink bottles)

Injection moulded: crates (major product); closures, buckets.

Capacity: 200 tons per month. Current exports: HDPE crates to Angola. Employees: 100

Crates are a major exported product

Range of blow moulded containers for general use

Topack’s extensive range of buckets, jugs, bowls


Equipment

They have a relatively modern factory and are currently extending moulding facilities in a number of areas.

• Blow moulding: 4 x Bekum

• Injection moulding: 2x 650 ton; 1x 850 ton; 1x 1000 ton; plus smaller machines x 2

• ISBM

• Screen-printing: semi automatic for crates

• Blown film: a wide range of gauges on 4 extruders. LDPE, LLDPE, HDPE e.g. shrink film, gusseted bags

• Printing for bags: 2 x 4 colour flexo presses

• Re-granulation: this is a new upgrade with

• ±100 kg /hour single screw extruder and pelletiser. The aim is to extend the present recycling of scrap crates to recovery of Municipal waste. Products: pails and damp proof course film for building industry.

Tool room has been upgraded for mould repair and maintenance. They are, in fact, capable of making moulds, but require the to ol making expertise.

Raw mater ia ls sourc ing

From various suppliers – in particular, Dow. Pre-forms are both moulded in house as well as imported.

Train ing

Topack has 90 – 110 operatives and supervisors in production related activities. The need for training has renewed impetus, as the Company is to be ISO 9000 listed early 2008. They take in 9th grade school leavers and make use of the Maputo based Centro de Formação Profissional Metalomecânica.

All training is on the job under the control of the production manager. For blown film extrusion their experienced Portuguese operatives have retired leaving a short-term skills gap. The comment was made that there is a shortage of supply of suitable engineers and technicians as Mozal, the recently acquired aluminium smelter, is using a large portion of local supply.

Flexo printing at Topack

Blown Film Extruders


Mould making.

Initia lly the Company had its moulds repaired in South Africa. This proved to be expensive as the mould had to go though export and import procedures as well as time delays.

Their own tool room is now used for maintenance of moulds. They will probably be making their own moulds, of a simple 2-plate type, in the near future. To that end, the Company has invested in a CNC machine, spark eroder and surface grinder. There are few specialised mould makers in

Mozambique and these offer only the making of blow moulds. The more complicated injection moulds are manufactured in Portugal.

Test ing

Currently, the Company runs a small lab with the testing concentrating on their major product, crates. They are about to network their computers in the factory to facilitate in-company communication.

Print ing

No problem with screen printers. Skills training required for flexo printing

New products

Topack’s fruit and vegetable HDPE crates are nearing production. These will be marketed as corrugated box replacement. These 6 and 20kg carrying capacity crates are no returnable, light weight and stackable and can carry an attached label. They are aimed at the soft and hard fruit markets and will carry a slight premium over the corrugated box.

Future developments

One-way, low weight, crates for fruit and vegetable exports and marketing of plastic pallet for export goods.

Assessment

This Company is the leader in the plastics packaging sector. One of the requirements of ISO 9000 is that they will need to show evidence of structured training throughout the

Company. They are thus very likely to make use of an information centre and ‘plastics’ specific training topics. For training, ‘Portuguese’ is a must. The topics that probably would sell well would be ‘injection moulding’ and ‘plastic materials’. A course on ‘quality’ and ‘printing’ may be of interest. The testing they carry out is product specific. More generic tests, as provided by an independent packaging lab would not be of too much value.

Strengths

Wide range of injection, blow moulded and film products possible on relatively new and brand new equipment.


Weaknesses

Poor quality flexo printing; no co-extrusion or lamination; no mould making expertise

Contact details

Managing Director: Joachim de Oliveira [email protected]

Director: Maria Teresa Magalhães mtmagalhã[email protected] Ph: +258 21 40 64 69 +244 222 290 646 Cell: +258 823 017 460 +244 923 310 289

Production Manager: Jorge Guerra [email protected] Ph: +258 823 118 430 Fax: +258 21 40 2178

Av. do Trabalo Box 2006, Maputo

Van Duzi

Van Duzi farms produce about 160 tons p.a. of various vegetables for sale on retail market in Britain. The range includes baby corn, chillies, rogette, fine beans, mange tout, and sugar snap.

Packaging materials are sourced from Zimbabwe, Plastique and Hunyani. They use imported packaging as the local is poor quality and for retail outlets in Britain BRC accreditation is becoming essential. ‘Plastique’ is BRC accredited. Their goods bear the retailers label and brand name; some have Mozambique as the origin.

Van Duzi wants to go into packaging manufacture for themselves. The major items would be vacuum trays and shrink film. They are seeking someone to help with a feasibility study for this venture into packaging manufacture.

Contact details

Managing Director: Chris Serfontein [email protected] Ph: +258 82 300 3001 Area: Chimoio


UGC (General Union of Cooperatives)

Background

By the early 1970s, during its final years as a Portuguese colony, Mozambique had grown to become the world's largest producer and exporter of cashew kernels. Today cashew nut production is still one of Mozambique's largest industries.

Business

Production of cashew nuts for local and export market. Processes are labour intensive - steam, shell, dry, peel, sort, vacuum-pack and label.

Capacity 600 tons, of whic h 50% is exported in large, bulk bags. Product is flushed with CO2 and vacuum packed in co-extruded material ex Huhtamaki, South Africa

Local goods packed in 330g PET jars.

Assessment

Labour intensive production line with use of correct packaging technology and materials. Future opportunities for growth are good.

Technoserve assisted cashew product ion uni ts

By April 2004, TechnoServe had helped to establish and is currently assisting seven medium-scale cashew processing plants in Nampula Province:

Product range: PET jars and Vacuum 200g pack.

De-husking

Locally printed label on PET jar

Cashew nuts: Bulk export pack; 2 are packed per shipper


1. Miranda Cajú, located in Namige, Mogincual, is TechnoServe's first cashew client. It has a 1,250-ton capacity, employs 460 workers, and purchases raw cashew from 12,500 smallholders.

2. Africajú Lda, located in Namialo, Meconta, has a 1,500-ton capacity, employs 160 workers, and will purchase raw cashew from 10,000 smallholders.

3. IPCCM, located in Murrupula Sede, has a 1,000-ton capacity, employs 84 workers, and will purchase raw cashew from 10,000 smallholders.

4. Miranda Cajú, located in Angoche Sede, began operations in April 2004. It has a 1,500-ton capacity, employs 230 workers, and purchases raw cashew from 5,000 smallholders.

5. Alexim Lda, located in Iuluti, Mogovolas, began operations in April 2004. It has a 1,000-ton capacity, employs 75 workers, and purchases raw cashew from 2,300 smallholders.

6. Moma Cajú Lda, located in Mecone, Moma, began operations in April 2004. It has a 1,000-ton capacity, employs 63 workers, and purchases raw cashew from 1,200 smallholders.

7. Macia Cajú, located in Macia, Macia, began operations in March 2004. It has a 1,500-ton capacity, employs 70 workers, and purchases raw cashew from 1,500 smallholders.

Miranda Cajú

Miranda Cajú: packaging line

Contact Details

Luciano Sambane Cell: +258 082 312 922 [email protected] [email protected] Rua Comandante Moura Braz 31 Box 668 Maputo http://www.technoserve.org


University of Eduardo Mondelane

UEM is a University of long standing in Maputo. Its engineering faculty, situated about 5 km from the city centre, has about 360 undergraduates. The Engineering degree course is 5 years long, including 6 months of in service training in the local industry. This faculty was selected as having potential with respect to the possible establishment of a packaging test centre because of its engineering academic roots.

Some of the lab facilities were in chaos when visited as major building alterations were underway.

These are scheduled for completion March 2008. However, the provision of lab space and resources would not be an obstacle in the longer term. The current engineering library is to be relocated to one central site shared by all University students. The Faculty encourages links with industry; there were no current ties with packaging companies.

Advantages of using UEM as a site for a packaging ‘testing’ facility:

• Non-commercial and independent of industry

• Equipment would be shared by both students and industry, making it more fully utilized.

• Incorporation of typical packaging oriented tests into the standard curriculum would extend the experience for the undergraduates and expose them to the typical requirements of industry

• Proximity to industry is good

Disadvantages:

• Slower delivery of test results; particularly during vacation periods

Contact Details

Director, Engineering Faculty: Prof Doutor Eng Jorge Nhambui [email protected] Ph 258 21 475 718 Fax: 258 21 475 311 Staff Member: Dr Marcos Figueiredo Ph: 254 827356223 [email protected] [email protected] Staff Member: Prof Doutor Eng Rui Sitoe [email protected] Ph 258 21 475 319; Fax: 258 21 475 311


Appendix VII: Mozambique product gallery and map

Most consumer goods are imported into the country. Supermarket shelves reflect this with major local packed products being confined to essentials like mineral water, fresh meats and dairy, cooking oils, flour, sugar and nuts.

Maputo has the greatest concentration supermarkets. Imported goods from Portugal, South Africa dominate the shelves. Many fresh vegetables are imported.

Local products: Flour; sugar; oi l

• Imported paper bags; locally made 50 kg woven PP bags.

• Oil in locally produced PET bottles and closures

• Graphics: A predominance of the national colours.

Dairy – all imported milk ex South Africa; aseptic packs


Local products: Mineral water

Mineral water, a good variety, all in locally produced PET bottles/ containers and closures. Label graphics: poor to average.

Local products: Nuts

Good and poor examples of packaging.

• Flexible pack: metallised PET; flexo print; excellent graphics.

• Jar: locally produced PET; graphics dull.


Local product: Seafood – packed and loose.

Unat t rac t i ve ly p resented .

Seafood: export goods

Packaging: all imported SBS paperboard; imported shippers. This is packed on board factory ships whilst off the Beira coast and exported directly to Europe.

Local products

• Locally produced HDPE bottle and label

• Flexible packaging: imported PP


Beira.

Much of this city is a shadow of what it was in the 60s and 70s. Contributory factors: Low level of investment; port under utilized.

Roads

The 5 000km of paved roads are generally in average condition; some major roads pitted with potholes.

A road through Matola - major industrial area

One of the main roads through centre of Maputo

Maputo shoreline



Appendix VIII: PACT Mozambique: Objective II

Objective II of the PACT Mozambique programme is to: “Assist Mozambican enterprises in improving their packaging with a view of enhancing competitiveness in the agro food sector.”

The outputs, activities and performance indicators relating to this objective are set out below:

Table 12: Activities and performance indicators

Outputs Activities Performance indicators Month Services/tools Responsible

II.1 Better awareness of enterprises of export market requirements in packaging of their products; introduction of related improvements at the enterprise level

II.1.1 Review the packaging needs of the agro-food sector based on market requirements, including current sources of supply (local packaging industry/imports)

• Diagnostic completed of the packaging situation in the agro-food sector including an audit of the current export situation for packaging of agro-food products, the packaging supply chain, the availability of institutional support and a cost effectiveness analysis study on packaging.

• Enterprises with better knowledge of packaging requirements for their products

April 06 Materials developed with PACT Senegal and Ghana

ITC DNI-National Directorate for Industries IPEX INNOQ Chamber of Commerce CTA Sector associations

II.1.2 Organize a debriefing session and prepare a report on above information collected

Report on the session completed

May 06

II.1.3 Organize a series of three awareness building export packaging seminars and a series of sector specific round tables with the objective of (1) Preparing, discussing and validating an action plan for improving the

• Number of sessions conducted

• Number of participating enterprises

• Action plan validated by local stakeholders

• Report on the training sessions

• Degree of satisfaction of

June 06


Outputs Activities Performance indicators

Month Services/tools Responsible

packaging o f the agro food sector, (2) Stimulating collaborative efforts among enterprises with the same packaging needs, (3) agreeing upon a set of packaging standards (4) discussing the feasibility of grouped purchases, as well as (4) the opportunity of creating contract packing operations.

participants with information /assistance provided

II.1.4 Implement the action plan. Cost-sharing activity based on the findings in II.1.3

• Number of companies involved in the joint group activities.

• Number of companies benefiting from the action plan

• Number of companies implementing the action plan.

July 06


Appendix IX: Short Courses

Short course on: “Plastics materials”

This would include the following topics:

• Plastics as chemicals.

• Advantages and disadvantages of plastics in general

• Key terms in use in the industry; e.g. amorphous/ crystalline; grades; cross-linking; degradation.

• Plastic testing – an overview.

• Use, applications, advantage and disadvantages of commercial plastics: LDPE, HDPE, LLDPE, PP, PVC, PA, PET, PS, HIPS.

• Laminations and co extrusions.

Short course on: “Quality assurance”

This short course on practical quality assurance and control is targeted at the plastics, packaging industries and printing industries. The course covers the essential background, for quality awareness. QC tools (e.g. statistics) required for day-to-day running of a QC department would be dealt with in a separate course.

Who should at tend

Short course designed as an entry-level course for QC practitioners and production supervisors and Company management team in the plastics, packaging and printing industries e.g. blow moulding, extrusion; injection moulding, blown film, corrugated board; flexo printing.

Specif ic outcomes

Quality Awareness: Assess and explain the meaning of quality in a personal and Company related contexts; Explain the role and importance of QC in a company; identify core values in the Company mission and quality policy statements; identify what quality means to customers. Evaluate the principles of fault prevention and its implications for quality. Assess the major implications of ISO9000…the 8 quality management principles; Draw up a specification

Course out l ine: Qual i ty awareness

The meaning of quality; decision on policy; company Mission statement; your Company’s goals and core values; quality and prevention; quality and performance standard; work as a process; process improvement; functions of Quality department.

ISO 9000: The requirements of ISO9000: 2000 and the implications of the 8 quality management principles.

Specifications and quality control:


• Inspection, quality measurement and control.

• Specifications, standards, codes of practice.

• The cost of quality.

• Deming (PDSA) cycle

Short course on: ‘Print ing’

• Reproduction & colour.

• Bar coding.

• Introduction to printing processes.

• Flexographic printing.

• Rotogravure printing.

• Lithographic printing.

• Screen-printing.

• Hot foil stamping.

• Transfer pad printing.

• Heat shrink labelling.

• Ink jet printing.

• Print characteristics and process choice.

• Printing inks.

Short course on ‘Food packaging’

Topics for one of this course would include technical and marketing related topics e.g.:

• Food spoilage.

• Permeability and barrier.

• Selecting plastics films.

• Mould design.

• Successful design to appeal to new markets

• Brand creation and brands in franchise system

• Folding carton shapes

• International standard dimensions for packs

• Colours and identification codes

• International certification.

Short course on: Marketing

• Packaging as a marketing tool: the silent communication and advertisement.


• Consumer’s needs: direct and indirect needs.

• Retail’s demands: distribution, effect on sales, reduction of looses, shelf impact.

• Packaging Design: effective communication and technique.

• The effect of colours and images and quality printing.


Appendix X: Test equipment for packaging test lab

• Tensile tester.

• Compression tester.

• Thickness gauge.

• Tear tester.

• Ancillary equipment: Knives; rulers; volume measurement; balance; vernier gauge; micrometer; tool set; thermometer.

• Conditioning room.

• Office equipment: PC and software; printer; scanner.

The IMPEE Porta LAB is a useful lightweight start to a laboratory. Made as a portable lab for testing of packaging, its durability would need to be investigated. Cost $11,000 USD; FoB, Mexico City.


Appendix XI: Packaging information centre host: check list

Current

• Structure of organization & titles; names.

• Mission, Activities & Services, Funding.

• Knowledge base.

• Current information on tap re packaging and printing.

• Economic knowledge.

• Own and in house literature on packaging.

• In house literature on packaging.

• Exporting matters knowledge.

• Legislation knowledge (on packaging, import/export, taxes, food safety, environment)

• International trends knowledge (packaging, design, consumers, retail, environment, food safety, traceability.)

• Areas of practical packaging/ printing expertise.

• Experience in running short courses? Evidence of success on running.

• Existing links with the packaging/printing industries? Database of contacts.

• Existing or planned lab test facilities/equipment.

• Availability of Information Center about packaging to the market (companies, students, etc.)

• Partners e.g. other institutes, labs, government section, Joint projects with other institutes, labs, government, etc.

• Newsletter (could be an electronic one.)

• Regions of activity (e.g. Nationally or focused in Maputo.)

• Visit to international trade shows.

• Market needs knowledge (end-users, retail, etc.)

Personnel

• Availability; further training required? Ability to teach/train? Education level? Any currently on further studies?

• Current technical competencies re packaging. e.g. materials; engineering

• Marketing expertise; ability to promote courses and ‘packaging’.

• Enthusiasm and motivation for this work.

• Training to be given on information retrieval e.g. at ITC.


Resources

• In house space…office; room for expansion?

• Resources: phone, PC; fax; email; photo copy?

• Extra required office, lab, and transport.

• Finance: estimated costs, personnel; extra resources

• Able to run courses in house / in Company?

• Accessibility by course delegates to premises (parking; safety); ease of communication with office

Our feel ing

• How well know it is by industries, institutes, government, etc. / how respected it is before the market.

• Impartiality.

• Ethic.


Appendix XII: Course coordinator (Marketing person) for packaging

Job specification

Some of these items are better allocated to IPEX based ‘information’ specialist.

1. Produce and manage database / spreadsheet of companies, appropriate government departments; contact details.

2. Assess industry short course/ training needs: market research, survey; quantify demand.

3. Advertise resource centre, short courses, etc to industry, press: email; phone, fax; brochure.

4. Run an industry committee for market needs discussion.

5. Arrange short courses/ training: venue; times; dates; costs; speakers; catering; chase up delegates; certificates of attendance.

6. Finance: bank a/c; controls on a/c ; payments to speakers; venues. Financial sustainability?

7. Resources: handle enquiries on trade; enquiries on testing, markets; suppliers; potential customers; literature post; web site produce and maintain.

8. Produce a ‘packaging and print’ suppliers guide.

9. Arrange / coordinate translations to Portuguese of key literature, etc.

Personal dimensions

• Marketing bent and enthusiastic.

• Portuguese and English spoken and written.

• PC skills.

Objectives required for 2008

• Survey on industry demand for possible short courses/ training requirements.

• Run ‘x’ number of training / short courses.

• Personal training courses undertaken e.g. management skills.

• Run a packaging committee for industry.

• Government and Industry contacts made.

• Suppliers guide / directory: research and publish.

• Set up enquiries database; keep records of these.

• Research on similar centres elsewhere; start on benchmarking.


Appendix XIII: Integration into global markets: Opportunities and challenges for Mozambique

Presentation by Steven Radelet. Centre for Global Development, at the CTA 9th Industry conference, 3-5th May 2006; Maputo.

Rule of Law (percentile rank), 2004

0 %

10%

20%

30%

40%

50%

60%

70%

80%

Mozambique Botswana Ghana India Madagascar South Africa Tanzania Uganda

Source: World Bank Institute. Kaufmann, D., A. Kraay, and M. Mastruzzi. 2005. “Governance Matters IV: Governance Indicators for 1996–2004,” World Bank Pol icy Research Working Paper 3630.


P r o c e d u r e s D u r a t i o n C o s t M i n i m u m c a p i t a l

C o u n t r y ( n u m b e r ) ( d a y s ) ( % G N I p e r

c a p i t a )

( % G N I p e r

c a p i t a )

M o z a m b i q u e 14 1 5 3 9 5 . 0 1 2

B o t s w a n a 11 1 0 8 1 0 . 9 0G h a n a 12 81 7 8 . 6 2 8I n d i a 11 71 6 1 . 7 0M a d a g a s c a r 11 38 5 4 . 3 2 1 5 8S o u t h A f r i c a 9 38 8 . 6 0T a n z a n i a 13 35 1 6 1 . 3 6U g a n d a 17 36 1 1 7 . 8 0

S o u r c e : D o i n g B u s i n e s s i n 2 0 0 6 , W o r l d B a n k .

S t a r t i n g a b u s i n e s s

Business Costs [1]

Perceptionof the Rule of Law

Perceptions ofControl of Corruption

Control of Corruption (percentile rank), 2004

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Mozam

bique

Botsw

ana

Ghana

India

Madag

asca

r

South

Africa

Tanz

ania

Ugand

a

Source: World Bank Institute. Kaufmann, D., A. Kraay, and M. Mastruzzi. 2005. “Governance Matters IV: Governance Indicators for 1996–2004,” World Bank Policy Research Working Paper 3630.


Business Costs [2]D i f f i c u l t y

o f h i r i n g

R i g i d i t y

o f h o u r s

D i f f i c u l t y

o f f i r i n g

R i g i d i t y o f

e m p l o y m e n t

H i r i n g

c o s t

F i r i n g

c o s t s

C o u n t r y( % o f

s a l a r y )

( w e e k s o f

w a g e s )

M o z a m b i q u e 8 3 8 0 2 0 6 1 4 . 0 1 4 1 . 0

B o t s w a n a 1 1 4 0 4 0 3 0 0 . 0 1 8 . 9G h a n a 1 1 4 0 5 0 3 4 1 2 . 5 2 4 . 9

I n d i a 5 6 4 0 9 0 6 2 1 2 . 3 7 9 . 0M a d a g a s c a r 6 7 6 0 5 0 5 9 1 8 . 0 4 0 . 9

S o u t h A f r i c a 5 6 4 0 6 0 5 2 2 . 6 3 7 . 5T a n z a n i a 6 7 8 0 6 0 6 9 1 6 . 0 3 8 . 4

U g a n d a 0 2 0 2 0 1 3 1 0 . 0 1 2 . 0


( 0 - 1 0 0 i n d e x , 0 = b e s t )

H i r i n g a n d f i r i n g w o r k e r s

Competitiveness Rankings

Country 2003 2 0 0 4 2 0 0 5

Mozambique 8 12 2 3

Botswana 64 57 6 0Ghana 29 35 5 0India 44 48 5 8Madagascar 5 8 9South Afr ica 58 61 6 5Tanzania 31 21 4 0Uganda 21 24 2 6

Source: Global Compet i t iveness Report 2005-06 , Wor ld Economic Forum

Growth compet i t iveness index

(Percenti le ranking)


Time to clear goods at port

02468

10

1214161820

Ethiop

ia

Moz

ambiq

ueNige

ria

Ugand

a

Zambia

Kenya

Mad

agasc

ar

Morocco Chin

aInd

ia

D a y s t o c l e a r i m p o r t s , m e d i a n D a y s t o c l e a r e x p o r t s , m e d i a n

Source: Benn Eifert , Alan Gelb, and Vijaya Ramachandran, “Business Environment and Comparative Advantage in Africa: Evidence from the Investment Cl imate Data,” CGD Working Paper #56, 2005.

Costs of crime, unofficial payments, and securing contracts

0

1

2

3

4

5

6

7

8

9

1 0

Ethiop

ia

Mozambiq

ueNige

ria

Ugand

a

Zambia

Kenya

Madagas

car India

China

Morocco

c o s t o f c r i m e + s e c u r i t y ,% o f s a l e s

u n o f f i c i a l p a y m e n t s t o “ g e tt h i n g s d o n e ” , % o f f i r ms a l e s , a v e r a g e

% c o n t r a c t v a l u e i ni n f o r m a l p a y m e n t s r e q u i r e dt o s e c u r e c o n t r a c t , a v e r a g e

Source: Benn Eifert , Alan Gelb, and Vijaya Ramachandran, “Business Environment and Comparative Advantage in Africa: Evidence from the Investment Climate Data,” CGD Working Paper #56, 2005.


Indirect costs as a share of total costs

0 0.1 0 . 2 0 . 3 0 .4 0.5 0 .6 0 . 7 0 . 8 0 .9 1

c h i n anicaragua

bangladeshsenega l

india

m o r o c c obol iviaugandaniger ia

e t h i o p i ak e n y a

tanzaniam a d a g a s c a r

zambiamozambique

indirect labor cap i ta l i n p u t s

Source: Benn Eifert, Alan Gelb, and Vijaya Ramachandran, “Business Environment and Comparative Advantage in Africa: Evidence from the Investment Climate Data,” CGD Working Paper #56, 2005.

Perceptions ofGovernment Effectiveness

Government Ef fect iveness (percent i le rank) , 2004

0 %

1 0 %

2 0 %

3 0 %

4 0 %

5 0 %

6 0 %

7 0 %

8 0 %

Mozambique Botswana Ghana India Madagascar South Africa Tanzania Uganda



Regulatory Quality

Regulatory Qual i ty (percenti le rank) , 2004

0 %

10%

20%

30%

40%

50%

60%

70%

80%

90%

Mozambique Botswana Ghana Ind ia Madagascar South Af r ica Tanzania Uganda


D o c u m e n t s f o r e x p o r t

S i g n a t u r e s f o r e x p o r t

T i m e f o r e x p o r t

D o c u m e n t s for import

S i g n a t u r e s fo r impor t

T i m e f o r impor t

C o u n t r y ( n u m b e r ) ( n u m b e r ) ( d a y s ) ( n u m b e r ) ( n u m b e r ) ( d a y s )

M o z a m b i q u e 6 12 4 1 16 12 4 1

B o t s w a n a 6 7 3 7 9 10 4 2G h a n a 6 11 4 7 13 13 5 5India 10 22 3 6 15 27 4 3M a d a g a s c a r 7 15 5 0 9 18 5 9S o u t h A f r i c a 5 7 3 1 9 9 3 4Tanzan ia 7 10 3 0 13 16 5 1U g a n d a 13 18 5 8 17 27 7 3

Sou rce : D o i n g B u s i n e s s i n 2 0 0 6 , W o r l d B a n k .

T r a d i n g a c r o s s b o r d e r s

Business Costs [1]


Business Costs [4]

P r o c e d u r e s T i m e C o s tC o u n t r y ( n u m b e r ) ( d a y s ) ( % o f d e b t )

M o z a m b i q u e 3 8 5 8 0 1 6 . 0

B o t s w a n a 2 6 1 5 4 2 4 . 8G h a n a 2 3 2 0 0 1 4 . 4I n d i a 4 0 4 2 5 4 3 . 1M a d a g a s c a r 2 9 2 8 0 2 2 . 8S o u t h A f r i c a 2 6 2 7 7 1 1 . 5T a n z a n i a 2 1 2 4 2 3 5 . 3U g a n d a 1 5 2 0 9 2 2 . 3


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