India opens credit line for projects in Mozambique

4 October 2010

Maputo, Mozambique, 4 Oct – The Indian government has opened a credit line of US$500 million to fund projects in Mozambique, the Indian prime minister, Manmohan Singh said in New Delhi, according to reports in Maputo.

The announcement was made Thursday after a meeting with a Mozambican delegation headed up by President Armando Guebuza, which has been in India since Wednesday to meet with government officials and businesspeople, as well as to sign five cooperation agreements.

As well as funding for infrastructure, agriculture and energy projects, the two countries agreed to reach total trade of US$1 billion by 2013.

The Indian government also committed to fund training and planning of Mozambican institutions, as well as preparation for the India-Africa summit in 2011.

The delegation is made up of 36 businesspeople, the Mozambican ministers for the Interior, for the Presidency and for Social Affairs, Foreign Affairs and Cooperation, Mining Resources and, Transport and Communication.

On Thursday, the Foreign Affairs ministers of both countries signed an agreement on double taxation of citizens and prevention of tax evasion, along with a memorandum to expand cooperation in the promotion of micro, small and medium-sized enterprises.

India is currently Mozambique’s third biggest economic partner and last year the country invested around US$550 million in the East African country, making it the fourth largest investor. (macauhub)