Modi’s visit: India and Mozambique to sign agreements on agriculture and civil aviation

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Modi’s visit: India and Mozambique to sign agreements on agriculture and civil aviation

11:50 CAT | 07 Jul 2016

Twitter, Vikas Swarup, Official Spokesperson, Ministry of External Affairs, India. / President Nyusi receives India PM Narendra Modi in Maputo

Mozambique and India are expected to sign two agreements in the area of agriculture and food production and civil aviation during the visit of Indian Prime Minister Narendra Modi to Maputo today, New Delhi press are reporting.

According to the Times of India, Prime Minister Modi on Tuesday approved a memorandum of understanding for the production of pulses which will help Mozambique acquire quality seeds and improve farming techniques, in return for which India will buy the entire crop.

The newspaper quotes the High Commission of India in Mozambique as affirming that Modi’s visit should also trigger a deepening of cooperation between the two countries in the areas of hydrocarbons, maritime security, trade and investment.

Modi’s visit, the first of an India prime minister in 34 years, will include high-level meetings with the Mozambican authorities and President Nyusi, a visit to Parliament and a meeting with the Indian diaspora in Maputo.

According to a Mozambican presidency statement sent to Lusa, the visit comes in response to an invitation made by Filipe Nyusi when the Mozambican head of state made a state visit to India last year.

Indian interests in Mozambique, include the participation of two Indian companies in the natural gas exploration block led by Anadarko in the Rovuma basin, and coal production in Tete province.

Despite several Indian operators having suspended their production in Mozambique due to low prices, the Indian state consortium International Coal Ventures Limited (ICVL) announced this week that it plans to build a thermal power plant with an initial capacity of 200 MW.

ICVL launched a major business venture in Mozambique in 2015 when it acquired for only US$50 million (EUR45 million) coal mines owned by Australian mining company Rio Tinto in Tete for which it had paid more than US$3 billion (EUR2.7 billion).

During his visit to India in August last year, the Mozambican president said his visit would faciiltate the strengthening of economic ties, citing greater investment between the two countries.

“Our goal was to strengthen our friendly relations and cooperation, in order to increase our economic ties. I believe we have achieved these goals,” President Nyusi said.

According to figures released yesterday by the Times of India, a quarter of Indian investment in East Africa comes to Mozambique. Trade between the two countries has increased fivefold in the past five years and is currently worth about US$2 billion (EUR1.8 billion) annually.

India also maintains a US$640 million (EUR577 million) line of credit for Mozambique, and US$10 billion (EUR9 billion) more for the African continent in its entirety, announced at the Third India-Africa Summitt in August 2015 in New Delhi.

At the time, Mozambican Prime Minister Carlos Agostinho do Rosario said that Mozambique would use the line of credit to focus on projects in the agricultural sector, water supply and the restructuring of the post office.

The two countries share strong cultural ties and a significant community of Indian origin lives in Mozambique. After Mozambique, Prime Minister Modi goes on to South Africa before heading for Tanzania and Kenya.

Source: Lusa