China should diversify financial aid to Mozambique

10 August 2011

Beijing, China, 10 Aug – China should expand the ways of financing Mozambique in its programmes for development and fighting poverty, with the inclusion of the country on the list of beneficiaries of funds from the China Development Bank (CDB), Mozambican agency AIM reported.

“The new phase implies getting commercial loans from China base don mutual gain, because so far many projects underway in Mozambique have been the result of subsidised loans,” the agency reported citing a Mozambican diplomatic source in Beijing.

The source said that the results of the meeting of the 4th Session of the Mozambique-China Mixed Commission, ahead of the six-day State visit by President Armando Guebuza that began Tuesday in China.

The Mixed Commission, amongst other issues aimed to prepare these agreements that in themselves have set a veritable record in terms of the number of agreements signed during a single official visit in both countries.

Thus far, subsidised loans have been granted on a government level, via the China EximBank, as was the case with the new Maputo International Airport, work on which is still underway.

The CDB is one of the main Chinese banks for commercial loans and around US$700 million were applied outside of China, according to figures provided by the Mozambican press, in Beijing.

Mozambique’s current aim is to get some of that funding to feed its projects for development and fighting poverty.

The deputy minister for Planning and Development, Amélia Nakhare, confirmed that the issue of the CDB was dealt with by the Mozambique-China Mixed commission and added that the bank would bring a new perspective on dealing with the private sector and channelling funding into public investment.

The deputy minister did not name the funding that Mozambique aims to get in the next three-year period, via the CDB, but noted that, “there is an open space for the investments to occur.”

Mozambique and China may also sign a customs and tax agreement, with the aim of moving towards free circulation of goods and services between the two countries. (macauhub)