Portugal has signalled confidence in the Mozambican economy, announcing a 500-million-euro (roughly US$583 million) credit line aimed at encouraging Portuguese companies to invest in the country, reports news outlet Club of Mozambique.
Portuguese Prime Minister Luís Montenegro made the announcement at the recent closing conference of the sixth Portugal-Mozambique Economic Forum, standing alongside Mozambican President Daniel Chapo.
Montenegro explained that the new credit line signifies his government’s confidence in the Mozambican economy and its pledge to stand by Portuguese companies in the internationalisation process.
The two countries signed 22 agreements the same day, promising in the final declaration to place economic aspects and sustainable development “at the top of the work agenda priorities.”
The declaration foresees Portugal and Mozambique strengthening coordination mechanisms to maximise bilateral financing instruments, “promoting business partnerships for the benefit of development and economic diversification in Mozambique.”
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Montenegro’s calls to invest echoed comments made by Chapo at the opening of the forum. The Mozambican president emphasised that Portugal is a “strategic and privileged partner” in Mozambique’s economic development and challenged Portuguese business leaders to invest in the country, highlighting the reforms underway.
“The reforms we are implementing are not abstract declarations. They are concrete measures with direct impact on investors’ wallets and time,” Chapo explained, citing a reduced VAT of 16 percent and a 10-percent corporate income tax for agriculture, among other measures already implemented.
“Mozambique is opening its doors, reducing barriers that create obstacles to doing business,” he said, and creating “a modern environment with legal predictability, efficient business approvals, and a competitive setting for investment.” He named agriculture, energy, tourism, the blue economy and digital transformation as areas for potential investment.
Chapo also praised the Portuguese companies already in Mozambique for sticking with the country through good times and bad. Around 500 companies operating in Mozambique have Portuguese capital and official data indicates that a quarter of the 100 largest companies under Mozambican law are Portuguese-owned, including the two largest banks: BCI (Caixas Geral de Depósitos) and Millenium BIM (BCP), which serve 4.5 million customers combined.
“I leave here a clear and unequivocal invitation to Portugal,” Chapo said, “let’s invest in Mozambique.”
