Portuguese financial company supports projects in Mozambique

21 July 2015

The Portuguese Fund to Support Investment in Mozambique (InvestimoZ) signed tits second financing contract, which includes construction of a hotel complex in the north of the country, said the chief executive of Sofid, Francisco Almeida Leite.

InvestimoZ, created in 2010 by Portugal and Mozambique, is managed by the financial institution Sofid, a Portuguese development bank 60 percent-owned by the state.

The CEO said the hotel, which is intended to focus on customers that are foreign staff linked to natural resources exploration in that area of ​​Mozambique, represents an investment of 4.1 million euros by the Promozing company and the loan granted by the financial vehicle owned by the Portuguese and Mozambican states totalled 570,000 euros.

Future projects include another contract with InvestimoZ, with an investment of 1.1 million euros, “and this year a protocol will be signed whose support will be 10.5 million euros in the area of ​​textile and manufacturing, which the government of Mozambique says is essential for the country.”

The first contract was signed recently with Portuguese company Mecwide, under which InvestimoZ granted a loan of 800,000 euros.

Mecwide will acquire a 90 percent stake in Mozambican company MIM and invest a total of 5.05 million euros in the project, which includes construction of a metalworking plant.

Four projects have been approved by the joint committee of the two countries and several are ongoing, with the remaining projects expected to be approved this month, in the sector of equipment rental for infrastructure projects in Mozambique, said Francisco Almeida Leite. (macauhub/MZ/PT)