Loan from Kuwait to finance rural electrification in Mozambique

26 December 2013

The Kuwait Fund has granted a US$10.2 million loan to Mozambique and the respective contract was signed last Tuesday in Maputo, the Mozambican press reports.

The loan matures in 30 years, with a 6-year grace period and a subsidised interest rate of 2.5 percent. Mozambican Finance Minister Manuel Chang indicated that it would be added to the financing needed to carry out rural electrification in Niassa province.

That project is estimated to cost US$55 million and already counts financing from the Arab Bank for Economic Development in Africa (US$10 million), the Islamic Development Bank (6.5 million), the Saudi Fund (15 million), the OPEC Fund (10 million) and the Mozambican government (3.3 million).

The rural electrification project for Niassa province includes the construction of high, medium and low-tension lines meant to benefit nearly 32,000 rural families. (macauhub)