China’s Minister of Finance, Lan Fo’an, has announced the allocation of more than 700 million yuan (approximately $102.3 million) in grants to support the implementation of strategic projects in Mozambique, noting that priority areas will be defined jointly by the governments of both countries.
According to a statement reported by Club of Mozambique, the announcement was made during a meeting with Mozambique’s Minister of Finance, Carla Loveira, as part of the official state visit carried out last week by President Daniel Chapo.
The statement also noted that both parties exchanged views on bilateral financial and economic cooperation, among other related matters, and that the Chinese government provided an additional donation of 200 million yuan (around $29.2 million).
Still in China, Carla Loveira met with Chen Xiaodong, head of the China International Development Cooperation Agency (CIDCA), with the aim of strengthening cooperation ties. The meeting took place on the sidelines of the 3rd High-Level Conference of the Forum on Global Action for Shared Development, held under the theme “From Vision to Action: Building a Global Development Community for All.”
During his stay in China, President Daniel Chapo expressed his intention to open a new chapter in economic and trade cooperation with the country, aiming for a “real, tangible and measurable” transformation in both nations.
“Mozambique is currently at a turning point. We have 50 years of cooperation with China, and our political and diplomatic relations are excellent. Now we want to open a new chapter in economic and trade cooperation,” he said during a roundtable with Chinese officials and business leaders.
Last year, the Chinese government waived interest on loans granted to Mozambique up to 2024 and announced a $12 million grant to support development projects in the country. Mozambican Prime Minister Benvida Levi confirmed the information following a two-day visit to China.
“We received two positive announcements from Chinese President Xi Jinping: one was the $12 million grant to our country, and the other was the waiver of interest on loans granted to Mozambique up to 2024,” she stated.
By the end of the first half of the year, debt to China accounted for 15% of Mozambique’s total external debt, which stood at $9.8 billion, highlighting the significant weight of the Asian country in national finances.
During the same period, Mozambique recorded no disbursements or debt service payments to Portugal, whose outstanding debt amounted to $380.7 million. Among bilateral creditors, only Japan had a higher exposure, at $405.5 million as of the end of June.
Source: Diário Económico
