China forgives Mozambique’s debt of seven million dollars – AIM report

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China forgives Mozambique’s debt of seven million dollars – AIM report

4:16 CAT | 15 Sep 2022

Screen grab: Miramar

The Chinese government has pardoned 50 million Yuan (about seven million dollars at current exchange rates) owed by Mozambique.

This follows an agreement, Partial Debt Forgiveness Protocol, signed in Maputo on Tuesday, by Mozambique’s Foreign Affairs Minister Veronica Macamo, and the Chinese Ambassador to Mozambique, Wang Hejun.

This sum is part of an outstanding debt, which should have been paid by the end of 2021. Mozambique’s current debt to China stands at around two billion US dollars.

At the same event, both countries signed an agreement for economic and technical cooperation under which China will grant 14 million dollars, as part of the decisions of the 8th Ministerial Conference of the Forum on China-Africa Cooperation (FOCAC), held in November 2021, in Dakar, Senegal.

Both parties also signed a certificate of food delivery of about 95 tons of wheat flour.

Speaking during the ceremony, Macamo said that the Chinese gesture is another unequivocal symbol of the deep friendship, solidarity, and cooperation built since the Mozambican liberation struggle against Portuguese colonialism.

“We express our deep gratitude for the donations made available to our country and for the forgiveness of our debt that will boost the development of our economy and ease the country from the debt burden. It will also contribute for the ongoing efforts for our government, aimed at reducing food shortage in Mozambique”, declared the minister.

Under bilateral cooperation, according to the minister, Mozambique and China are working on the implementation of cooperation programs in an integrated and more comprehensive manner to improve productive capacity in sectors such as agriculture, agro-processing and energy.

“China is a friendly country that has always been by Mozambique’s side, making its contribution in the promotion towards sustainable development of our nation”, she added.

For his part, the Chinese ambassador said that the agreements just signed are a clear sign of joint implementation of the various decisions announced at FOCAC, and a true picture of friendship strengthening between both countries.

The $14 million donation, according to the ambassador, will be used to implement projects to be approved by both governments.

He also pointed out that 98 percent of goods originating from Mozambique are exempt of tariffs, a measure “which seeks to deepen bilateral trade”, adding that China will continue to expand cooperation with Mozambique and promote more pragmatic and beneficial projects for the both countries.

Source: AIM