President of Mozambique seeks funding from China for development projects

15 May 2013

The President of Mozambique met Tuesday with Chinese officials, businesspeople and banks with a view to raise additional funds to carry out around 100 projects, according to Mozambican news agency AIM.

Citing a source from the presidential entourage, the agency said that half of the US$10 billion that the projects will cost had been secured by the Chinese government, as well as Chinese banks and companies, in the form of donations and subsidized loans, under the terms of a US$20 billion credit line that the Chinese government has opened up to African countries.

The US$10 billion will make it possible to build and repair roads, including construction of the Maputo ring road and repairs on the road linking the city of Beira to the town of Machipanda, on the border with Zimbabwe, which will cost US$417 million, as well as the roads between Bene, Fingoé and Zumbo (US$278 million) and between Cuamba and Marrupa (US$184 million).

The Education sector will use funding of around US$300 million for construction of schools and seven polytechnic institutes in the provinces of Maputo, Inhambane, Sofala, Zambézia, Niassa and Cabo Delgado.

After arriving in Beijing Monday and after a meeting with his Chinese counterpart Xi Jinping, President Armando Guebuza travelled on to the city of Wuhan, the capital of Hubei province, where he met Tuesday morning with the provincial governor Wang Guoshen.

In the afternoon the Mozambican president travelled to the city of Xiangyang, to visit rice production company Wanbao, whose technicians are introducing new rice production techniques to the southern Mozambican province of Gaza.

On Wednesday Guebuza is due to visit Shanghai, which is the last stop on his visit to China, where he hopes to raise the funds needed for his government’s five year programme. (macauhub)