Mozambique’s Private Sector Tops Lists On Petroleum Fund

Mozambique’s Private Sector Tops Lists On Petroleum Fund

Mozambique is topping the list of countries in Portuguese speaking African countries that have benefited the most from the Organisation of Petroleum Exporting Countries Fund for International Development (OFID), Minister of Trade and Industry Armando Inroga said this week.

The southern African country which still bears the scars of a 17-year-old civil war, currently has a credit portfolio of $78.8 million followed by Cape Verde with $20.5 million, Angola’s OFID credit line is $18.3 million and Sao Tome and Principe at $3 million. OFID, established some 38 years ago, currently receives contributions from Algeria, Ecuador, Gabon, Indonesia, Iran, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates and Venezuela.

Last year the OFID bankrolled public projects in 103 developing countries in Africa, Latin America and the Caribbean, Asia and Europe. Overall Mozambique has received funding of US$209.2 million from OFID and Cabo Verde has received US$658 million, Angola US$43.01 million and Sao Tome and Principe US$21.8 million.

“OFID’s funding in Mozambique has benefited Agriculture and Agro-industry with $58.59 million, Energy has been earmarked with US$45.54 million, the transport sector will get $34.67 million, non-sector funding $28.05 million, Education $22.6 million, Health and Population $17 million, and Industry $2.82 million),”Inroga said.

In terms of funding the private sector the fund provided loans of US$12 million for Midal Moçambique to build an aluminium cable factory in Matola on the outskirts of the Mozambican capital. Foreign Direct Investment in Mozambique has propelled the country’s economy in recent years. The economy is forecast to grow at 8 percent in 2014, a slight increase on previous years due to strong farming output and investment in the mining sector which continue to expand

Inflation has been forecast at 5.6 percent for 2014. Mining Minister Esperance Bias told parliament recently that the expansion in the sector has created more jobs and opened up new businesses.

“In the last few years we have carried out a number of surveys of mining resources in Mozambique and we have discovered large mineral deposits namely graphite and iron,” Bias said. He, however, talked more about coal forecasting that coal exports from Tete province this year would total around 6.5 million tons, double compared from two years ago when the country exported 3.8 million tons of coal worth US$370 million.

So far seven coal concessions had been granted in Tete province, one of the country’s fastest growing regions.  The companies operating in the area are working to create ways of transporting 11 million tons of coal per year to Mozambique’s ports starting in 2015, which will increase to 13 million tons in 2016 and 18 million tons in 2017.

Bias said that coal-mining companies in Tete had made a significant contribution to job creation to the creation of small and medium-sized companies in Mozambique.

N.B: Mabvuto presently on assignment in Maputo, sent this piece in from there

Written by Mabvuto Banda

Mabvuto Banda

Mabvuto Banda is a Zambian born award-winning investigative
journalist. He is based in Lilongwe–Malawi. He writes for Reuters,
Inter Press Service, and contributes to several other respected
international media organisations on graft, politics, business and
health. He is one of southern Africa’s foremost political analysts,
has vast experience in journalism, business intelligence, media
advisory services and profiling.

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About Mabvuto Banda

Mabvuto Banda is a Zambian born award-winning investigative journalist. He is based in Lilongwe--Malawi. He writes for Reuters, Inter Press Service, and contributes to several other respected international media organisations on graft, politics, business and health. He is one of southern Africa's foremost political analysts, has vast experience in journalism, business intelligence, media advisory services and profiling.

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