Local production of Jatropha for oil production started mid 2005. An estimated 150 ha has been planted by farmers and organisations. The demand for affordable biodiesel is large due to the high price of conventional diesel (presently above US$ 1,- per litre); This should be compared to the average income of around US$ 60,- per month. Therefore the stimulus for further upscaling is large. In first instance Jatropha oil will be used for local or private use, for bio-diesel or electricity.

The mission on behalf of FACT, funded by Stichting Het Groene Woudt (SHGW), resulted in two project proposals, of which one was considered viable. Three donors were found willing to finance the project: Stichting DOEN, HIVOS and Stichting Solidaridad, all from The Netherlands. FACT Foundation is the main partner and has appointed its associate Arrakis as the company in charge for the overall management. The main local partner is ADPP Mozambique.

The objective of this project is: to build an infrastructure and capacity to enable the autonomous upscaling of the activities after termination of the project. The project will initiate the local production of Jatropha seeds and develop a local market of end-users for the oil. The creation of capacity among the local small farmers and technicians is an important component of the project. The start of the actual activities was 15 November 2006 and the planned completion date is end 2009. Other local partners in Mozambique are: GAIA and FNR Mozambique (Mr. Flemming Nielsen of IIAM).

On 15 November 2006, a first preparation and start up meeting took place in Chimoio, in which participated: Anton Veldt for ADPP-Chimoio, Jacob Zulu for GAIA, Flemming Nielsen for IIAM and Jan de Jongh of Arrakis. The Mozambican partners promised to develop a preliminary workplan for the activities with priority, in particular to set up research plots with a number of varieties of Jatropha. In December 2006, both contracts with HIVOS and DOEN were received and the one from Solidaridad was confirmed and announced to come in January 2007. Arrrakis continues communicating with the Mozambican partners and has started making contractual arrangements with them.