Macao can further develop its financial sector by providing new services and supporting companies from China and the Portuguese speaking countries. The territory’s issuing banks, Bank of China and Banco Nacional Ultramarino, are the financial institutions geared to support Macao’s platform in promoting relations between China and the Portuguese-speaking countries.
The currency of China has been attracting African countries, especially after its inclusion among the benchmark currencies of the International Monetary Fund (IMF), with Angola considered one of the countries that will most benefit from its use.
Coal prices on international markets have more than doubled since the beginning of the year, allowing mining projects to resume and improving the prospects for infrastructure projects in Mozambique.
A lack of roads is seen as one of the greatest barriers to the development of inter-African economic relations and for the Economic Community of West African States (ECOWAS), China’s financing may be the solution.
The internationalisation of China’s currency, the renminbi, in cross-border trade in which Macau will serve as a clearing platform, has been anticipated by Portuguese and Chinese banks, offering a range of services in Chinese currency to companies in the Portuguese-speaking countries.
From the pristine, vast beaches of the Quirimbas Islands in the north to the colonial-style café esplanades in the capital of Maputo, Mozambique is a place of sun and leisure not exactly known for being a fast-paced destination. But in a time when heated discourse over the country’s recent economic downturn rises above the coffee-shop din, many events are quickly unfolding for a nation previously considered the paragon of economic development on the African continent. And no change can rival that of Mozambique’s evolving relationship with China.
The cycle of expansion based on raw materials, which has sustained growth of economic relations between China and African countries like Angola, is playing out and the next opportunity is in human resources, says researcher David Dollar.
China is enhancing its participation in efforts to increase power production capacity in Africa, specifically in Angola and Mozambique, a factor which the International Energy Agency (IEA) considers vital for the continent’s development.
Angola has received a quarter of all the loans China has granted to African countries in the last 15 years and Angolan state oil company Sonangol has received 84 percent of all the loans granted to the extractive industries, according to a new academic database.
The diversification of Angola’s economy, which is a major priority for the country’s authorities, will have the support of China and some support instruments will be analysed “very soon” at the mixed commission between the two countries. The country is facing difficulties as a result of the drop, since 2014, in the price of oil, which made it more urgent to boost the weight of the non-oil sector. As a result of this on 13 June Angola and China discussed economic cooperation at a meeting between multi-sector delegations in Beijing, according to Angolan news agency Angop.
The South Atlantic, where five Portuguese-speaking countries are located, has been a privileged area for key companies China in their efforts at globalisation and Angola and Brazil are among the top five destinations for Chinese investment in the last decade, according to a recent study.
Support from China for the industrialisation of Angola and Mozambique has been set as an objective on a government level, as large investments in local production capacity, even more necessary at a time of economic difficulties, are now expected.
A direct air link between Lisbon and Beijing, a long-standing objective of the governments of Portugal and China, is about to become a reality, at a time when a Chinese airline is taking a stake in Portuguese airline TAP.
The visit of Mozambican President Filipe Nyusi to China promises to deepen bilateral economic ties at a time when relations with key international donors in Mozambique are at one of the lowest points in their history.
Portuguese state financial group Caixa Geral de Depósitos (CGD) plans, from a base in Macau where it has a significant presence through the BNU bank, plans to function as a business facilitator between China and the Portuguese-speaking countries, the group’s “Chief China Officer”, Alberto Soares, told Macauhub.
An international consortium, which includes the port company China Harbour Engineering Co, is projecting an investment of US$1 billion in a new port in Maputo province, to serve Mozambique and neighbouring countries, including South Africa.
Restoring confidence to setting up business partnerships is the aim of the new Angola-China Chamber of Commerce, whose governing bodies include important figures from Angolan society and the business world.
The investment of US$6 billion in the Rovuma/Gauteng pipeline, the largest ever Chinese investment in Mozambique, will support Mozambique’s industrialisation strategy and strengthen the Chinese presence in the region, according to recent analyses collated by Macauhub.
China is increasingly using its own currency, the renminbi, in trade with third countries and an increasing number of African countries, notably Angola, have started using the Chinese currency and included it in their baskets of currencies.
A visit to the new Portuguese settlement of Macao in 1591 was the inspiration for the masterpiece of the Chinese playwright Tang Xian-zu which has been performed across the centuries up to present day.