Portugal sets up credit line for companies investing in Mozambique

24 July 2009

Maputo, Mozambique, 24 July – Portugal signed an agreement Thursday with Mozambique to allow Portuguese companies access to subsidized credit for investing in the island of Mozambique, and extended the existing cooperation agreement for another year.

The agreements were signed between the Mozambican government (the Deputy Minister for Foreign Affairs, Henrique Banze) and the secretary of State for Foreign Affairs and Cooperation, João Cravinho.

Part of the cooperation with Mozambique centres upon support for the island, where Portugal has funded the restoration of the fort, now setting up the FECOOP (Portuguese Business Cooperation Fund), a fund of around 5.7 million Euros to support companies wishing to invest in the island and surrounding area.

“This is a fund in the region of US$8.5 million,” said João Cravinho, explaining that with this money Mozambican registered companies (headquartered in Mozambique but which may be foreign) could invest sums “in the region of US$60 or US$70 million dollars,” which would be subsidized by this fund.

The secretary of State said that there was a “great opening” for funding areas, but added that companies who wished to invest in agriculture or construction would be given priority.

“Services can also access this credit,” particularly those linked to tourism, he said.

The Portuguese ministry visit also served to extend the agreement that should have ended at the end of this year for another year up to 2010.

The Indicative Cooperation Program (PIC) will be extended until 2010. With this agreement Portugal will make over 15 million available over the next year but within the same program. (macauhub)