The Ministerial Conference of the Forum for Economic and Trade Cooperation between China and the Portuguese-speaking countries that began on Tuesday in Macau, is the highest level of all previous conferences, which is a sign of the growing importance and complexity of this multilateral relationship.
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.
The recent state visit of the President of the Republic of Mozambique Filipe Jacinto Nyusi to Beijing this past May confirms the commitment of both countries to strengthening their relationship. The two countries have agreed to increased bilateral cooperation in areas such as politics, security, economy, trade and culture.
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.
Mozambique’s energy sector, which includes major projects being launched by Chinese companies, offers the country the best prospects to overcome the current adverse economic period, analysts have indicated.
Commercial banking in Mozambique has managed to maintain high growth rates, but recent adversity in the economy may bring changes to the banking landscape, including mergers and acquisitions, according to analysts.
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.
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.
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.
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.
The capacity of the railways in Mozambique will increase significantly once the line between Moatize and Nacala, known as the Nacala Corridor, with the strengthening of the Sena line, to be completed in the coming months.
Financial support from China to African countries where Portuguese is the official language (PALOP) amounted to S$22.6 billion between 2000 and 2014, half of which was directed to Angola, according to Chinese official figures cited in a study published recently.
The positive trend of economic and financial forecasts of Mozambique has declined in recent months, although growth remains strong, but the authorities’ efforts to control inflation should succeed, Portuguese bank Banco BPI has said.
The economic forecasts for Mozambique have lost some lost some momentum in recent months, but a set of new projects funded by China in the county’s two major cities should stimulate growth.