France pardons Mozambique’s remaining debt

22 July 2015

France has pardoned the remaining debt owed to it by Mozambique in the amount of 17.5 million euros, to mark the three-day state visit by President Filipe Nyusi to France, the Mozambican press reported.

This pardon is the fourth granted by France to Mozambique under the Highly Indebted Poor Countries Initiative (HIPC).

The agreement signed by the Mozambican minister of Foreign Affairs and Cooperation, Oldemiro Baloi, and French Minister for the Economy, Industry and Digital Technology, Emmanuel Macro, stated that of that amount 10 million euros will be channeled to the state budget over the next five years .

It was also agreed that 5.5 million euros will be spent to support technical and vocational training projects and the amount left over will be used for operations to protect species at risk of extinction.

On Monday, French President François Holland, received his Mozambican counterpart Filipe Nyusi at the Elysee Palace, and during the meeting the two presidents adopted a new strategy and schedule that will be the basis for strengthening cooperation between the two countries.

The President of Mozambique said he managed to interest French entrepreneurs in investing in Mozambique, giving as an example a promise to open a French bank in the country, according to Mozambican daily newspaper Notícias.

In addition, there were also promises to grant a credit line of an unspecified amount for financing construction of a water supply system in the city of Mocuba, in Zambézia province.

Nyusi also said that French businesspeople plan to invest in the energy sector, with plans already in place to build a solar panel plant in Metoro in the province of Cabo Delgado. (macauhub/MZ)