africa Aid Donors Economy Finance Mozambique

Portugal and Mozambique signs new strategic cooperation programme

The new Strategic Cooperation Programme between Portugal and Mozambique signed on Monday in Maputo for the 2017/2021 period has a financial package of €202.5 million, with about half offered as credit on preferential terms.

The Portuguese Secretary of State for Foreign Affairs and Cooperation, Teresa Ribeiro, said that special attention will be given to “investment and trade,” as well as support for traditional sectors such as education and health.

Nyeleti Mondlane, the Mozambican deputy minister of Foreign Affairs, said after the signing of the document that 102.5 million euros will be offered as credit on preferential terms, granted through the Portuguese Cooperation Business Fund and the Portuguese Support Fund for Investment in Mozambique.

The credit offers more favourable conditions than those of the general market in terms of interest, grace periods and amortization.

The signing of the new Strategic Cooperation Programme comes after the donor group to the Mozambican State Budget – including Portugal – suspended aid in 2016 following the hidden debt scandal.

Secretary of State Teresa Ribeiro said that this did not interfere with the preparation of the programme signed on Monday, adding that the right support for the State Budget is a separate issue that is “being considered” by a group of donors.

Source: Macauhub

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