Spain to maintain current level of support for Mozambique

18 October 2010

Maputo, Mozambique, 18 Oct – Spain will maintain its current level of support for Mozambique despite the international crisis, a diplomatic source told Macauhub in Maputo, adding that relations between the two countries may reach higher levels.

The source said that Mozambique should move on from being a cooperation country to one of investment, “because Spanish entrepreneurs need other markets and Mozambique needs investments in many sectors, including infrastructures,” the latter counting a strong presence of Chinese and Portuguese companies.

Spain has a strong presence in the fishery sector, led by Pescamar and Crustamoz, besides other companies in the renewable energy and forestry sectors.

Spain also maintains a credit line for Mozambique worth about 54 million euros per year, the biggest for a sub-Saharan country, the diplomatic source said.

Of the 54 million euros, 7 million support the Mozambican state budget, while the rest backs Spanish non-governmental organisations operating in Mozambique.

Mozambican President Armando Guebeza began last Sunday an official visit to Spain, where he is to visit the cities of Madrid, Barcelona and Zaragoza.

The source contacted by Macauhub said that an agreement would be signed during the visit with a view to forgiving 17 million euros of Mozambique’s currently estimated 22 million euro debt to Spain.

“An agreement meant to forgive Mozambique’s debt to Spain of almost 22 million euros will be signed,” the source said, adding that “10 million euros will be entirely forgiven while another 7 million dollars will be converted into investments.” (macauhub)