Islamic bank finances power transmission line in Mozambique

15 June 2015

The Islamic Development Bank (IDB) will provide US$200 million to finance construction of a power transmission line in Mozambique, the Mozambican Minister of Economy and Finance said recently.

Adriano Maleiane, who was speaking at the closing session of the 40th annual meeting of the IDB, said the line to be built between Chimwara (Zambézia province) and Nacala (Nampula province) aims to meet growing demand for energy in the north and centre of the country, replacing the current line, which is operating at maximum capacity.

The minister also said the cost of this power transmission line is currently estimated at US$600 million.

In addition to this funding, the parties signed two agreements, including one for the IDB to support Mozambique in the areas of training, in particular training of entrepreneurs on the Islamic model of finance and private sector development.

During his speech, IDB President Ahmad Ali, reiterated the commitment to support Mozambique and stressed the need to intensify support for the private sector in the country. (macauhub/MZ)