Bank of Mozambique warns of Increased exposure of banks to public debt
The Partnership and Global Strategic Cooperation Agreement signed on Wednesday by the President of Mozambique, Filipe Nyusi, and his Chinese counterpart, Xi Jinping, makes Maputo unique in Chinese diplomacy beyond Asia.
Only Cambodia, Laos, Myanmar, Thailand and Vietnam – all countries neighbouring China – have signed a similar agreement with Beijing.
The document, which sets out 14 principles governing bilateral relations, strengthens ties between the army, police and intelligence services of both countries, with Beijing committed to helping Maputo strengthen its national defence capabilities, safeguard the stability of the country and train military personnel.
The agreement also establishes the framework for trade in arms, equipment and technology, at a time of renewed political and military tension between the government of Mozambique Liberation Front (Frelimo) and the Mozambique National Resistance (Renamo).
During the talks between Xi and Nyusi in the Great Hall of the People in central Beijing, the Chinese president recalled China’s role in Mozambique’s national liberation struggle.
“The friendship [between both countries] arose from the joint struggle against imperialism and colonialism,” he said.
China supported Frelimo in the fight against the Portuguese administration and was one of the first countries to establish diplomatic relations with Mozambique after independence in 1975.
On economic and commercial matters, the agreement talks of China’s Maritime Silk Road initiative, a term which refers to a giant infrastructure plan reviving the ancient Silk Road between China and Europe through Central Asia, Africa and Southeast Asia.
In this context, the two countries will cooperate in shipping and port construction, mariculture and ocean fishing.
China divides partnership agreements with foreign countries into 16 categories. The Global Strategic Partnership Agreement signed in 2005 with Portugal, for example, did not contain the word “cooperation”.
Filipe Nyusi this week made his first official visit to China, Mozambique’s main creditor, which, according to figures cited by the Mozambican press, has increased its financing to Maputo by 160 percent since 2012.
Speaking to journalists, the Chinese Deputy Foreign Minister Zhang Ming said on Wednesday: “China will help [Mozambique] in this difficult time (…) providing technology, equipment and even financial support.”
Zhang declined, however, to give figures. “You don’t ask a woman her age,” he said, “and you don’t ask a trader for numbers either.”
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