China to support industrialization of Mozambique

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China to support industrialization of Mozambique

6:10 CAT | 20 May 2016

Macauhub

China will support the industrialisation of Mozambique, according to a statement issued Wednesday in Beijing at the end of negotiations between delegations headed by the Presidents of the two countries, the Mozambican press reported.

Delegations led by Xi Jinping and Filipe Nyusi also agreed to establish a “global strategic partnership”, according to the announcement at the end of the meeting from the Chinese Vice Foreign Minister Zhang Ming.

This partnership the deputy minister said, “should include cooperation in all areas, including political, security, economic, commercial and cultural.”

Under this partnership, the parties agreed to “intensify coordination of plans for bilateral cooperation and mutually beneficial policies, and to actively promote industrial links and cooperation in production capacity of materials.”

This also involves a commitment to a ‘broad cooperation with mutual benefit in energy production, mining and manufacturing,” in order to “speed up the industrialisation and modernisation of Mozambique.”

The Xinhua news agency reported that President Xi Jinping said the Chinese government would support Chinese companies to invest in natural gas exploration in Mozambique and in other sectors of economic activity.

To this end, Chinese companies and financial institutions will be encouraged to form public-private partnerships (PPPs) or Build-Operate-Transfer (BOT) vehicles to “actively participate in the construction of infrastructure in Mozambique, such as railways, roads, airports and power plants.”

The two countries also agreed to strengthen financial cooperation, encouraging “the establishment of subsidiaries of financial institutions in each country” and the use of the national currency of each country in the transactions between them.

Zhang Ming, quoted by daily newspaper Notícias, said that China would like to strengthen cooperation on the maritime economy, under the 21st Century Maritime Silk Route, “given that Mozambique is a country with a big coastline.”

The Chinese Deputy Foreign Minister said China was prepared to help Mozambique to overcome the economic difficulties it is currently facing, although he did not mentioned what mechanisms would be put in place to achieve this aim.

The delegation headed by the President of Mozambique is due to have courtesy meetings today with leaders of some Chinese public companies and meet with the Mozambican community in Beijing.

Source: Macauhub