Chinese Interests To Invest Billions in Mozambique

Aug. 28 (EIRNS)—In stark contrast to the IMF/World Bank austerity-based structural adjustment approach followed by Western industrial nations, Chinese interests are set to invest $13 billion in Mozambique, according to an Angola News Agency release. This was announced by a delegation of Chinese business people from Shanghai in Maputo on Aug. 26. The investments are to be for a number of projects in Mozambique over the next five years.

Two memoranda of understanding (MoU) were signed by the Mozambique government and the Chinese investors, thus laying the basis for the implantation of these projects.

The MoUs were signed by Mozambique Planning and Development Minister Aiuba Cuereneia and the head of the Chinese delegation, Cao Hongru.

An industrial park and a car assembly plant are included in the projects, which are to be built in Catembe municipality across the Maputo Bay from the capital.

Speaking at the signing ceremony, Cao said that "these two memoranda are the result of the visit of the Mozambican Prime Minister, Aires Ali, to China last June, when he invited Chinese businesspeople to invest in Mozambique".

According to the release, Cao Hongru is also the chairman of the board of the China Tong Jian Investment company in Shanghai.

Cao also noted that the Chinese business people are prepared to immediately invest $1 billion, and establish direct flights linking Maputo and Shanghai to boost trade and tourism between the two countries.