China provides Mozambique with funding of US$23.6 million

24 September 2012

China has decided to provide Mozambique with US$23.6 million in funding, which include an interest-free loan of US$9.4 million and a donation of US$14.2 million, the Finance Ministry said in Maputo.

The agreement was signed by China’s Assistant Minister of Commerce, Li Rongcan and the Mozambican Fishing Minister, Victor Borges, who at the end of the ceremony said that both the loan and donation had been provided as part of other funding that China has been providing to Mozambique.

These agreements, according to Borges, re in addition to other funding moves underway worth a total of around US$1.2 billion that has already been paid out and a further US$500 million that has yet to be provided.

The Minister also noted private Chinese investment in Mozambique, which is currently estimated to total US$3 billion.

Borges said that the US$9.4 million of the current loan would be included in the “stock” of Mozambique’s foreign debt, which is currently estimated to total US$4.2 billion, and paid down according to the approved schedule. (macauhub)