Shanghai businesspeople announce investment of over US$13 billion in Mozambique

27 August 2010

Maputo, Mozambique, 27 Aug – Companies from China are to invest over US$13 billion in industrial and real estate projects in Mozambique over the next five years, under the terms of two memoranda of understanding signed Thursday in Maputo.

The announcement of the Chinese business interests in Mozambique, for the next five years, was made by Sao Agru, head of a Chinese business mission that ended a visit to Mozambique Thursday seeking investment opportunities.

After the agreements were signed, the head of the Chinese business mission said that construction of an industrial park was planned covering an area of 20 square kilometres, in southern Mozambique, a citadel on the south bank of Maputo bay, also in southern Mozambique, and a hotel in the country’s capital.

“Within five years we will be investing US$13 billion to carry out several industrial projects in Mozambique, using Chinese capital. China needs to expand its investments and Mozambique needs industrial development, these are two needs that offer an area of reciprocity,” noted Sao Angru.

The Chinese investment will also to setting up industries in the automotive, textile, mining and energy sectors as well as technological and research centres, he added.

According to Sao Angru, in order to make the projects viable an investment fund is to be set up, which will be funded by the Chinese government, as investment proposals from interested companies are approved.

One of the memoranda, signed by the Chinese delegation and the Maputo Municipal Council, is for building a city called “China Town” in the municipal district of Catembe, although its construction depends on construction of the bridge that will link Maputo and Catembe. (macauhub)