60 Mozambican business people fly to China with Nyusi in visit focused on industrial cooperation

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60 Mozambican business people fly to China with Nyusi in visit focused on industrial cooperation

8:13 CAT | 17 May 2016

In Fie Club of Mozambique

When Mozambican President Filipe Nyusi arrives in China on Monday night, industrial cooperation, particularly in natural gas and in manufacturing, will top the agenda for discussions with his Chinese hosts, according to the Chinese ambassador to Mozambique, Su Jian.

In an interview with the Chinese news agency Xinhua, Ambassador Su described Nyusi’s visit as a “milestone” in bilateral relations, and key for Mozambique to embark “on a self-reliant and sustainable development path”.

Although the visit must have been planned months in advance, it comes at a time of crisis in Mozambique’s relations with its western partners, in the wake of the revelation in April that over a billion US dollars worth of government guaranteed loans had not been disclosed, either to the Mozambican public, or to the country’s partners, including the International Monetary Fund (IMF) and the World Bank.

In protest at the undisclosed loans, the IMF cancelled a mission that was to have visited Mozambique in mid-April, and suspended the second instalment of a 283 million dollar loan from the IMF’s Standby Credit Facility (SCF). The group of 14 donor countries and financial institutions that provide direct support to the Mozambican budget followed suit, and suspended further disbursements of financial aid.

The government has reacted to this suspension of donor funds, by promising to cut public expenditure this year, and by seeking to re-establish Mozambique’s credibility with its international partners.

Ambassador Su, while not mentioning such setbacks, stressed the potential in Nyusi’s visit of advancing Sino-Mozambican economic cooperation “to the interests of both countries”.

Su claimed that Nyusi had told him “several times” that his government would prioritise ties with China. Su added that China too was prioritising ties with Mozambique, which it regarded as “a key partner”, in China’s push for international industrial cooperation.

Su said that China will transfer knowledge, management and equipment to help African countries fast-track industrialization and build up industrial chains to add value to the continent’s vast natural resources.

Su recalled that In February Chinese Foreign Minister Wang Yi visited Mozambique and the two countries “agreed that cooperation would focus on natural gas exploration and manufacturing, beginning by laying down the infrastructure, training professionals, and providing financial support”.

Quoting the official Chinese figures, Su said the stock of Chinese direct investment in Mozambique rose to 1.2 billion U.S. dollars, by the end of 2015.

Much of the Chinese investment is in large scale construction projects. Thus the China Road and Bridge Corporation is currently building what will be Africa’s longest suspension bridge, between central Maputo across the Bay of Maputo, to the urban district of Katembe.

The bridge should be completed in 2017. The road links between Katembe and the tourist resort of Ponta de Ouro and the South African province of Kwazulu-Natal are being upgraded as part of the same project. The time taken to drive from Kwazulu-Natal to Maputo will be drastically reduced.

China also financed the new Maputo Ring Road, and the complete rehabilitation of Maputo International Airport. Other buildings completed in the recent past by Chinese companies include the new Presidential offices, the national sports stadium in the outlying Maputo neighbourhood of Zimpeto, and the Foreign Ministry.

President’s delegation

The composition of Nyusi’s delegation gives some indication of the economic rationale behind the visit. Among the senior government figures accompanying the President are the Minister of Industry and Trade, Max Tonela, the Minister of Public Works, Carlos Bonete, and the Deputy Minister of Economy and Finance, Maria Isaltina Lucas.

A large business delegation is accompanying Nyusi. 71 business people registered for the trip with the Confederation of Mozambican Business Associations (CTA), and about 60 have flown to China.

As on previous state visits, Nyusi also invited deputies from the three political parties represented in the Mozambican parliament, the Assembly of the Republic.

Renamo refuses presidential invitation

The ruling Frelimo Party accepted the invitation as did the opposition Mozambique Democratic Movement (MDM). But, exactly as on previous visits, the largest opposition party, the rebel movement Renamo, spurned the invitation and is boycotting the delegation.

Source: AIM