Ouro Verde Project, Phase 1 The project partners want to set up a factory for the production of panela (natural sugar) in a remote northern region in Mozambique.The applicant, Agricane Ltd, is a South African consulting company specialised in agricultural development, processing and management in various countries in Africa. Amongst others Agricane has experience in setting up small growers schemes for sugar cane in Malawi, Swaziland and Mozambique.Ecoenergia Mozambique LDA is linked to SEKAB which has ample experience with projects for the sale and development of bio fuels. SEKAB is a leading European supplier of ethanol from sugar cane and is the only supplier of verified sustainable bio ethanol in the world. Ecoenergia was established in order to start development of ecological sugar cane production for future bio ethanol production in Mozambique. It has spent the last three years setting up the plantation in Ocua. There is now a plot of 20 ha in production and another 30 ha is ready for planting. Here different varieties and growth methods are tested.The partners want to set up a production plant for the production of natural sugar (panela). For the production of natural sugar the raw materials will come from the organic sugar cane plantation. The market targeted will be the EU while a small volume will be sold in South Africa. The aim is to set up relatively small-scale production, close to the location where the sugar cane plantation is.Corporate Social Responsibility (CSR)The project will gain HACCP, organic and Fair Trade certification.Processing will be done according to occupational and safety regulations as well as ISO 14001 (environment) management system standards. Furthermore, a safety, health and environment (SHE) system will be drafted and implemented for the project and associated contractors.Impact•	Employment and working conditionsFor the processing 41 staff will be hired. Salaries will vary between 3 euro per day for general labour to 6 euro for semi-skilled labour. Medium-level employees will be local staff and wages will be 280 euro per month.Of these 41 jobs, 15 will be part time staff. The administrative staff will total 10.Basic-level administrative staff will earn 70 euro per month, medium-level 570 euro per month and high-level staff 700 euro per month.•	Innovation / Transfer of knowledgeThe project will be set up in a rural, underdeveloped part of Mozambique. Most of the knowledge transfer will be new to the area. Training of all level employees as well as SHE issues will be conducted on a regular basis.•	Chain effectsAs mentioned, the project will be set up in an underdeveloped part of Mozambique. Main spin-off effect is the development of infrastructure (roads, electricity, water) this project will bring for local communities.The project will furthermore offer employment as well as internship possibilities for the local technical school.An outgrowers scheme is not part of the PSI project but may be developed with nearby communities as the market develops.•	EnvironmentEnvironmental impact is limited as the project will process organic sugar cane. The waste produced will be mostly used to fuel the processing plant and used as fertilizer.As the agricultural production area will be expanded, more land will be needed. For this expansion local farmers and communities will have to be moved elsewhere. This is done in close consultation with the local government and population.•	Position of womenThe number of women employed will be limited and is projected to be 4 in total. Setting up a facility for the production of organic natural sugar in Ocua.