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China forgives interest on loans granted to Mozambique up to 2024 and donates €12 million – Prime Minister
1:11 CAT | 15 Oct 2025
File photo: China Daily
The Chinese government has forgiven the interest on loans granted to Mozambique up to 2024 and announced a donation of €12 million to the country, Mozambican prime minister Benvida Levi said on Tuesday.
“We received two positive pieces of news from the President [Xi Jinping]. One of the news items was the donation to our country of 100 million yuan [equivalent to €12 million] and the forgiveness of interest on the loans granted to Mozambique until 2024,” Levi told journalists after a two-day visit to China.
The announcement was made by the Mozambican prime minister following an audience with the Chinese president, in a meeting that, according to Levi, also served to inform about Mozambique’s main instruments of governance, namely the Government Five-Year Plan (PQG) and the Economic and Social Plan and State Budget (PESOE).
“Together we identified some areas for follow-up. In our view, agreed with by the Chinese side, we want to focus investments on agriculture, including its entire value chain, technical and vocational training, and health,” Levi said.
READ: Xi Jinping holds talks with Mozambique’s Prime Minister in Beijing
Regarding the education sector, in which Chinese support enabled the construction of the Muanza Polytechnic Institute in central Mozambique, the Mozambican government is seeking further investment in technical and vocational education to allow the building of more schools in other parts of the country.
As of March this year, more than 14% of Mozambique’s external debt was held by China, the country’s largest bilateral creditor, with a stock of $1.383 billion (€1.218 billion), according to Mozambican government data.
The former Chinese ambassador to Mozambique, Wang Hejun, estimated last April that Chinese investments in Mozambique already amount to $9.5 billion (€8.2 billion). Last year, the value of bilateral trade reached $5.6 billion (€4.8 billion), he also noted.
Chinese investments in Mozambique are focused on infrastructure, energy, and natural resource extraction, in addition to a growing corporate presence in strategic sectors of the Mozambican economy.
A document signed in 2016 between the two countries established 14 principles to guide bilateral relations, opening the way, beyond trade and investment, for strengthening contacts between the army, police, and intelligence services.
The agreement provides for China to provide technical assistance to the Mozambican Defence Forces (FADM), including training of personnel, provision of equipment and accessories, totalling around $11.5 million (€10 million).
In June 2024, the defence ministers of both countries expressed their intention to elevate military cooperation to a new level, strengthening information sharing, joint training, and defence capabilities under the Mozambique-China Joint Defence Committee.
In the same year, the armies of both countries participated in the “Peace Unity 2024” exercise in Tanzania, focusing on counter-terrorism operations, enhancing counter-insurgency capabilities and exchanging information.
Source: Lusa
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