Portugal may increase value of credit line for investments in Mozambique

25 October 2010

Maputo, Mozambique, 25 Oct – Portugal may up the value of the existing 400 million euro credit line for investments in Mozambique, Portugal’s state secretary for the treasury, Carlos Costa Pina, said in Maputo.

Costa Pina made his comments during a meeting with entrepreneurs to present a new 94 million euro support mechanism for investment in Mozambique, InvestimoZ, which had been announced last March during Portuguese Prime Minister Jose Socrates’s visit to Mozambique. He said that the increase was being discussed by the finance ministries of both countries.

In the scope of the credit line, financing has been approved to date for projects involving transport equipment for the power and road networks, Costa Pina added.

The Sofid development financing company held a meeting last week in Maputo to present instruments and discuss investment opportunities with Portuguese and Mozambican entrepreneurs. A highlight was Portugal’s InvestimoZ support fund for investing in Mozambique, created to encourage investment by Portuguese-Mozambican partnerships.

The aim of the fund, which acts as risk capital, is to participate in the capital of investment projects in Mozambique backed by Portuguese companies in partnership with local companies, in sectors that add value and transfer capabilities to Mozambique’s economy and business fabric.

Sofid was founded in 2007 as a financial credit institution in the form of a limited company majority held by the Portuguese state (59.99 percent) and also holds public company status. Other shareholders include the banks Millenium bcp, Espirito Santo, BPI and the Caixa Geral de Depositos financial group (10 percent), along with the ELO – Portuguese Association for Economic Development and Cooperation (0.01 percent). (macauhub)