The two-day visit will bookend his presidency, underscoring his efforts to reach out to Africa by helping Mozambique, a fellow former Portuguese colony, follow in Brazil's footsteps in the fight against AIDS.

Lula, who hands over the reins to protege Dilma Rousseff on January 1, is stopping in Mozambique en route to the G20 summit in South Korea, one of eight foreign trips planned for his final days in office, according to state news agency Agencia Brasil.

"President Lula will visit the site of the future anti-retroviral factory during his visit," Mozambican health ministry spokesman Leonardo Chavane told AFP.

"The project is the product of a collaboration between Brazil and Mozambique."

The factory, which aims to help Mozambique increase the availability and affordability of HIV medication, was conceived during Lula's state visit to Mozambique during his first year in office in 2003.

Brazil famously offers free anti-retroviral (ARV) treatment to every HIV-positive citizen, a programme that sparked controversy when it was announced in 1996 because of concerns about drug resistance and violation of pharmaceutical copyrights.

But it has since been praised as a model for the developing world, with the World Bank estimating the free medicine saved more than half a million lives.

Chavane said the new factory will make the fight against AIDS more efficient in Mozambique, where 2.5 million people -- 11.5 percent of the population -- are living with HIV but just 200,000 take ARVs, according to the UN AIDS agency.

"Currently, the anti-retrovirals used in Mozambique are purchased in Europe, India or the United States. That makes them very expensive because of the transportation costs," Chavane said.

"The factory will allow us to increase the amount of medication available while lowering the cost. That will help us fight AIDS more efficiently."

While several private laboratories in Africa have ventured into small-scale ARV production, the Mozambican factory will be the first public facility on the continent to produce the drugs.

An opening date for the plant has not been set, but Chavane said it is on track for completion in 2011 after the first machine arrived last week.

Brazil has pledged 20 million dollars (14 million euros) for the 26-million-dollar project -- eight million dollars in equipment and 12 million dollars in licensing fees.

Besides touring the factory, Lula is also scheduled to launch an agricultural development programme and speak at the national teachers' university during his visit.

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