Economy
The district is well served in terms of accessibility, as it is cut by two major roads, Pemba-Montepuez and north-south road that connects Nampula to Mocímboa da Praia. The town of Ancuabe is located 67 kilometres from Pemba.
The dominant economic activity in the district is agriculture, involving almost the entire population. Most agricultural production is for self-support and the main crops are: cassava, maize, bean, sorghum, peanut and rice. Food supply is also aided with domestic animals and hunting of wildlife (deer and wild boar), and the fruit harvest.
Commercial farming of cotton, brown nuts and maize were important in colonial times and post-colonial but are returning, especially the cotton industry is of note.They are also exploited forest resources, especially as energy source for most of the population, although there is great potential forest.
There are also large reserves of graphite which were exploited commercially from 1994 to 2000. Graphites de Ancuabe Ltda. operated a sizeable mine and plant near Ancuabe from 1994 to 1999. According to feasibility studies for international mining companies, the reserves amount to about 1 million tonnes of ore with a content of 10% graphite. The extraction capacity installed (open) has a potential production capacity of 10,000 tons of graphite a year. The extraction and processing were stalled in 1999, however, due to a number of reasons, particularly financial difficulties of the dealer, the low price of the mineral on the international market and a poor and expensive power supply, because the district is not yet connected to the national grid. In 2007, the Mozambique government announced its intention to re-open the mine, but this depends on the supply of electricity from the Cahora Bassa Dam.
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