Japan grants US$280 million loan to Mozambique

15 May 2015

Japan has granted an additional US$280 million loan to Mozambique to be applied in the second phase of the project to expand Nacala port, per terms of an agreement signed on Thursday in Maputo, the Mozambican press reports.

The loan is the last instalment granted by Japan for the project to develop Nacala port. In 2012 it granted US$30 million and in 2013 a further US$70 million, making for an overall total of US$380 million.

The three loans are together the highest amount ever granted by the Japanese government under the development aid programme and have a 30-year amortisation period with a 10-year grace period and annual interest of 0.01 percent.

Implementation of the project’s first phase began in March 2013. The second phase should begin this month and consists of continuing dredging work by the north quay, landfill, ground levelling and paving of the container terminal.

Completed and planned work at the Nacala port aims to raise the current cargo processing capacity of 2 million tons/year to 5.5 million tons/year by 2020.

The port of Nacala is a vital infrastructure for the Nacala Corridor in the context of integrated development of the country’s infrastructures, besides providing access to neighbouring countries such as Malawi and Zambia. (Macauhub/MZ)