Mozambique: Loan and Grant Agreement With China

Maputo — The Mozambican and Chinese governments on Saturday signed in Maputo two cooperation agreements, to the total value of 23.7 million US dollars to finance projects to be agreed between the two countries at a later date.

One agreement is for an interest-free loan to Mozambique of 9.4 million dollars, while the second concerns a Chinese grant of 14.3 million dollars.

The agreements were signed by Mozambique’s Minister of Fisheries, Victor Borges, and by the Chinese Deputy Minister of Trade Li Rongcan.

Speaking immediately after signing the agreements, Borges said the loan and the grant will be used “in building infrastructures that will benefit the Mozambican population in the framewrk of the efforts the government has been undertaking to fight against poverty”.

These agreements, he added, follow Chinese fiancing for various projects already under way to the tune of 1.2 billion US dollars, plus a further 500 million dollars yet to be disbursed. He also put private Chinese investment in Mozambique at three billion dollars.

As for the precise areas that the loan and grant will cover, Borges said that, in such cases, Mozambique generally submits projects to the Chinese government. “It would be premature to say anything further, since we still have to coordinate with the Chinese side”, he added.

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Mozambique: Loan and Grant Agreement With China