Mozambique provides a credit line of 453.6 million UAEs

O Mozambican President announced today the opening of a $500 million (EUR 453.6 million) credit line from the Abu Dhabi Development Fund in the United Arab Emirates to finance national projects.

“ We signed a memorandum for the granting of this credit of about $500 million,” Mozambican head of state Daniel Chapo said at a press conference in Abu Dhabi at the end of the three-day work visit to the United Arab Emirates.

Financing is the result of one of the seven cooperation and investment instruments signed during Daniel Chapo’s work visit to the Emirates, which included agreements in the areas of tourism, energy, geospatial development, airport infrastructure, solar energy and facilitating economic relations between the two countries.

According to the Mozambican President, the memorandum signed represents a formal demonstration of interest by the Abu Dhabi Development Fund in financing projects in Mozambique, followed by negotiations to define the conditions, deadlines and modalities for disbursement of credit.

“The Government of the Emirates has clearly and unequivocally shown that it has about 500 million dollars [453.6 million euros] available to lend to the Government of the Republic of Mozambique,” he said.

Daniel Chapo explained that the memorandum is the first step in a process which should culminate in the signing of a financing agreement, a document which will define the conditions for disbursement, deadlines and modalities for the use of resources.

The announcement comes at a time when the government seeks to mobilise external funding to accelerate public investments and support projects considered structural for the country's economic development.

During the visit, the Head of State pointed out to authorities and investors of emirates business opportunities in the sectors of energy, natural gas, agriculture, tourism, transport, logistics, blue economy, infrastructure and digital transformation.

According to Daniel Chapo, the meetings held with U.S. political leaders and businessmen allowed demonstrations of interest in investing in Mozambique at a time when the executive seeks to capture foreign capital to boost the economy and create jobs.

“In several strategic sectors,” he stressed, referring to the interest expressed by companies during the Business Forum held in Abu Dhabi and at bilateral meetings held on the margins of the event.

The credit line now announced integrates a broader package of understandings achieved during the presidential visit.

The initialled agreements also include a joint declaration for the establishment of an Comprehensive Economic Partnership between Mozambique and the United Arab Emirates, an initiative which the Mozambican Government considers essential to increase trade and strengthen the flow of investment between the two countries.

At the end of the visit, Daniel Chapo considered that the commitments reached marked the beginning of a new phase of bilateral cooperation, based on a larger economic component and focused on concrete results.

“ We will continue to work so that the understandings achieved translate into concrete investments, productive, job creation for youth and Mozambican woman ", said the ruler.

The President of Mozambique added that the Government intends to monitor the initiatives agreed to ensure their implementation and transform the commitments made into projects that have a direct impact on the country's economic and social development.