China has emerged as Mozambique’s second largest foreign investor in 2008, moving from sixth place in 2007. Its total investment of $ 76.8 million is second only to South Africa. These figures were released at two seminars held in Maputo for business people from Mozambique, Macao and China, to promote partnerships and business collaborations for more investment in the African nation. If these investments are maintained China should soon emerge as the top foreign investor in Mozambique. At present, the balance of trade is tilted towards China, but this can be remedied if Mozambique also pushes investments in Chinese territories.
China has been investing in mining resources, hydroelectric projects and agriculture. Mozambique has been exporting sesame, soy and timber in huge quantities to China. It finds Mozambique conducive for business as it protects property rights, offers flexible repatriation of funds, and has a developed legal framework for settling disputes.
Moza Banco, a Mozambique bank, signed a cooperation protocol with the Bank of China to formally exchange banking transactions of their respective clients. This would ease the business transactions that Mozambique businessmen plan to undertake in Asian markets. The Bank of China happens to be one of the world’s largest financial institutions, and its customers will now be able to pursue their business interests in the African nation with ease. China also happens to be the only country to have its own investment center in Mozambique.
China has invested in 69 major projects in Mozambique, has assisted in infrastructure development, has been running mega farms that have been taken on long leases, and setting up cattle ranches. Statistics reveal an investment of $800 million in agriculture and farming to take rice production up to 500,000 tons by 2013, from the current level of 100,000 tons. China has been seeing its cities and towns expanding with its percentage of arable land consistently decreasing. Therefore, it is leasing large farms in Africa to get adequate supplies of rice to meet its ever-increasing demand, as rice is the basic staple in Chinese diets. Chinese experts are also opening an advanced agricultural institute in Mozambique along with agricultural schools. It would also provide expertise for setting up irrigation channel networks. Fisheries and training of personnel are other areas of interest to China.
Source : China Africa
Tags: Africa, China, Mozambique
