Brazil’s BNDES loans US$10 million to the construction sector in Mozambique

21 July 2009

Maputo, Mozambique, 21 July – Mozambican construction companies are to benefit from US$10 million for the acquisition of equipment for the civil construction sector, said Mozambican newspaper Notícias.

A group of 17 companies is also expected this year to set up a banking guarantee syndicate with a view to accessing funds provided by Banco Nacional de Desenvolvimento Económico e Social do Brasil (BNDES).

Agostinho Vuma, the first vice president of the Mozambican Federation of Contractors said that a committment had been made last week at the end of talks between the federation and the Brazilian state bank.

With the concession of the US$10 million, Vuma said he believed that it would improve the performance of Mozambican contractors.

Vuma said that with this funding Mozambican companies will be able to compete on a national level, creating conditions for construction projects in Mozambique to involve national companies.

Noting that he would like to see joint ventures created, Vuma said that the draft now drawn up made it possible directly to provide equipment to Mozambican contractors without having to set up partnerships with foreign companies.

The vice president to the Mozambican Federation of Contractors also added that a second phase of talks on cooperation with the Brazilians will include funding by the BNDES for activities to create conditions for Mozambican companies to be able to compete for tenders and for them to operate normally should the State delay payments. (macauhub)