Mozambique has put in place several areas in order to improve its economy and lift the nation which was ravaged by war.

APAMO General Director Joao Jeque said Monday Mozambique's sugar production is expected to shoot to about 295,000 tonnes from 243,860 tonnes last year.

Mozambique's four operational sugar mills are expected to produce about 295,000 tonnes of sugar this year, compared to the 243,860 tonnes produced in 2007; said Jeque.

He told allAfrica.com that the four sugar companies have already started this year production campaign hoping to surpass the best record of the country's last 30 years production.

The director disclosed that Xinavane and Maragra companies in the Southern African country's capital of Maputo province will produce 80,400 tonnes and 79,691 tonnes respectively whereas Sena and Mafambisse companies, in the central province of Sofala, are set to produce 75,000 and 60,000 tonnes respectively.

According to the allAfrica.com report, Mafambisse and Xinavane factories, which are owned by the South African Tongaat-Hullett group, are planning to expand their production areas which are anticipated to allow sugar production to rise to 177,000 tonnes a year by 2009.

The expansion of Tongaat-Hullet production is estimated to cost US$ 189 million, 63 per cent of which is to be invested in modernizing and expanding the factory infrastructures.

Mozambique produced 243,860 tonnes of sugar last year and exported 93,754 tonnes to the European Union preferential markets as well as to the free market where prices are said to be much lower.

However this figure was a reduction of 45 per cent compared to the exports made in 2006.

Mozambique exports yielded about US$ 45.9 million in 2007, 29 per cent less than in 2006.

The Southern African country is also looking at building its economy through improving its tourism facilities looking ahead to the 2010 World Cup in South Africa.

In another development Mozambique is ready to license new operators in the fixed-line phone market after ending state-owned TDM's monopoly late last year, a senior government official told Reuters on Tuesday.

"We want to encourage local and foreign companies to invest in the fixed phone network. If you come up with a proposal today, I will approve it, and this is immediate," Transport and Communications Minister Paulo Zucula said.

The fixed-phone market has suffered due to problems within TDM and competition from mobile phones, which were introduced in the southern African nation more than a decade ago.