India’s investment in Mozambique may exceed US$1 billion in 2010

6 July 2010

Maputo, Mozambique, 6 July – India’s investment in Mozambique this year may exceed US$1 billion, as compared around US$500 million in 2009, the director general of the Centre for Investment Promotion (CPI) said in Maputo Monday.

India is to provide US$34 million in funding to expand the electricity grid in the northern Mozambican provinces of Cabo Delgado and Niassa, and Manica in central Mozambique, and projects related to education and health, as part of an agreement signed Monday in Maputo.

“We have several projects under discussion and I hope that they are carried out this year because they are investments that will certainly change the structure and pattern of production in our country,” said Rafique Jussob.

The director general of the CPI noted that the Indian economy was modernising itself and producing competitive and durable goods at a third of the price of identical products that Mozambique imports from European and North American markets.

“This means that we will be importers of equipment, machines, consumer goods, including medication. On our side we have to export processed cashews and cotton to India and continue to export food, grains and leguminous plants,” he said.

According to Jussob, there are a number of investments underway and investment opportunities that have been identified by the Indians in the mining sector, “which will lead to Mozambique becoming an exported of mining goods, such as coal, iron and steel, in the near future.”

As part of a two-day visit (Sunday and Monday) to Mozambique, India’s Foreign Minister Somanahalli Mallaiah Krishna (known as S.M. Krishna), who signed the financing agreement with his Mozambican counterpart, Minister for Planning and Development, Aiuba Cuereneia, said that Mozambique planned to re-launch trade and business cooperation with India.

Cuereneia also said that in 2009 India was the fourth-largest foreign investor, in a year in which a total of 250 projects worth over US$6 billion were approved. (macauhub)