India provides three credit lines to Mozambique worth US$217 million

8 July 2013

India plans to open up three credit lines for Mozambique worth a total of US$217 million to fund public works and housing projects. Agreements for the new credit lines were signed at the end of the meeting of the Mozambique-India Mixed Cooperation Commission.

The three agreements, which were signed by Mozambique’s Finance Minister, Manuel Chang and by David Rasquinha, the chief executive of the Indian Export-Import Bank (ExIm), are intended to repair the Tica-Búzi-Nova road, in Sofala province, to build 1,200 houses in Tete, Zambézia and Cabo Delgado provinces and the third phase of the water supply project in the provinces of Manica, Zambézia and Nampula.

These agreements bring an end to funding provided by the credit line announced by the Indian government during a visit by Mozambican president, Armando Guebuza, to India in 2010.

At the time the Inidan government announced a credit line worth US$500 million which, as well as sectors that have already been announced, also funded improvements in the quality of energy provided to the city and province of Maputo, increased rice, wheat and maize yields in Mozambique as well as allowing for a solar panel factory to be built in Beluluane.

At the end of the 3rd session of the Mixed Commission for Cooperation between Mozambique and India, the two sides said that relations between the two countries were excellent and announced the next meeting would take place in New Delhi.

On Friday the Mozambican deputy minister for Natural Resources, Abdul Razak, said that trade between Mozambique and India had doubled in two years, rising from US$631 million in 2010 to US$1.28 billion in 2012. (macauhub)