LAM financial crisis endangers Mozambique Airports - AIM report
Mozambican business people praise “unbreakable” relations with China
12:50 CAT | 07 Oct 2016
Lusa (File photo ) / Mozambican businessman and head of the Business Confederation of the Portuguese Speaking Countries Community (CPLP) Salimo Abdula
The president of the Business Confederation of the Community of Portuguese Speaking Countries (EC-CPLP) believes that the relationship between Mozambique and China is “unbreakable” despite the “devastating effect” that armed conflict wreaks upon the country’s image abroad.
“There is an unbreakable link between the two states, a strong relationship, good and historic, which comes from the liberation struggle times and grows incessantly” Abdula said in an interview with Lusa in connection with the current Forum for Economic and Trade Cooperation between China and Portuguese-speaking Countries (the Macau Forum).
“China is one of Mozambique’s most important partners, and has been investing in various sectors, particularly infrastructure, agriculture and energy,” the businessman added.
The president of Intelec Holding, which holds stakes in several large Mozambican companies, says that the recent debt crisis and the international distrust of Mozambique’s public accounts had had no impact on economic and business relations between the two countries.
“They continue to be robust and have not suffered. There are political delegations from one country to the other, and Mozambique has appointed a former prime minister as ambassador. These are signs of a strong, unbreakable relationship,” he said.
Asked about the importance of the debt crisis, the economic slowdown and rampant inflation, Abdula recognized that the country is going through a difficult time, but said that he remains optimistic about the future, adding even that this “is the best time to invest” in Mozambique.
“Mozambique is going through unusual times in a regional context of slowing economic, but beyond that the country has sensitive internal issues. The political and military conflict is, above all, what most affects the external image of Mozambique, because new investors, who continue to look at the country as an ‘El Dorado’, a country of the future, have held back a little, waiting for more stable times,” the former Mozambican member of parliament said.
The resumption of dialogue “between the government and the guerrilla opposition” is proof that the conflict must end soon, the businessman said, stressing that “those who are in Mozambique do not feel the war, there is no war in their day to day lives; these are isolated attacks in a well-defined area. Only the psychological effect is devastating, especially for those who are outside and think the country is going up in flames”.
He admits that “those who do not know the country and are thinking of investing are in ‘stand-by’ mode”, but says this is a mistake, stressing that “this is the best time to invest” in the country.
“When this phase is over, it will take decades for as good a time to invest as now to come round again. Mozambique use to have such real estate speculation that a square meter in a good area was going for US$4,000 – New York levels. Now people are buying for $1,000, $ 1,500,” he said.
“This is a winnowing time,” he said. “The entrepreneurs who are here and who withstand this stage will have a large share of future business, but it will cost those who have one foot inside and the other out a lot to re-enter the market.”
“Worse than we went through in the 80s does not exist. For us, this is not a cyclone, it is just a bit of wind,” he joked.
The Macau Forum is taking place on 11 and 12 October, the Macau government has announced.
Source: Lusa
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