The governments of Mozambique and Angola on Tuesday (23) called for an increase in the involvement of the private sector to speed up and strengthen economic relations, with the aim of achieving concrete results that benefit both countries.

During the 10th session of the Joint Commission, the Mozambican Minister for Foreign Affairs and Cooperation, Verónica Macamo, stressed the importance of raising economic relations to the same level of excellence as political relations between the two countries. She emphasized the need for exponential growth in the volume of business, so that more Mozambicans and Angolans can benefit from the activities carried out in various areas.

The Angolan Minister for Foreign Affairs, Téte António, for his part, considered that the economic potential of both nations should be exploited, and that there was room to improve economic relations and bilateral trade, given the opportunities offered by the economies of the two countries.

António announced the holding of a business forum in Maputo between businesspeople from the two countries, with the aim of exploring opportunities in various areas. He also highlighted the importance of implementing the visa waiver agreements between Angola and Mozambique, as well as increasing the frequency of air connections, as instruments for boosting economic cooperation ties.

As part of strengthening bilateral relations, the two countries signed a cooperation agreement in the health sector, with the aim of exchanging information and experiences. They also decided to hold regular political consultations and reiterated their mutual support for candidacies in international organizations.

The Confederation of Economic Associations (CTA) expressed its desire to reverse the fall in trade with Portugal, seeking to attract Portuguese companies to invest in Mozambique.

Eduardo Sengo, executive director of the CTA, pointed out that despite the historical and cultural relations between Mozambique and Portugal, there has been a reduction in the level of these trade relations in recent years. He stressed the importance of strengthening trade ties between the two countries, citing a significant drop in Mozambican exports to Portugal over the last ten years.

To reverse this trend, the confederation intends to collaborate with the Portuguese business sector interested in expanding internationally. Eduardo Sengo mentioned the possibility of a cooperation agreement with the municipality of Santa Maria da Feira, in the district of Porto, as a result of the business mission’s visit to Portugal.

During the visit to the Port of Sines, opportunities were identified in the area of port management and logistics, as well as the possibility of learning from the paperless experience and applying these practices in Mozambique.

At the end of the visit, the president of the Ports of Sines and the Algarve, José Luís Cacho, expressed his interest in deepening the relationship with the Mozambican business sector, stating his willingness to promote trade in both directions.

The business mission will conclude with the Mozambique-Portugal Business Forum, to be held at the Belém Cultural Center in Lisbon on the afternoon of the 24th, with the presidents of both countries expected to attend.

According to the 2023 public debt report drawn up by Mozambique’s Ministry of Economy and Finance, the World Bank, through the International Development Association (IDA), holds 29% of the country’s total external debt, which exceeds 10.2 billion dollars.

After contracting by 3.2% in 2022, the nominal stock of the government’s external debt increased by 2.4% over the course of 2023, mainly due to disbursements from the IMF and Japan. The report highlights that external debt has shown a stabilizing trend, not returning to the high levels of 2021.

China is the second largest creditor, with 15% of the debt, followed by the IMF with 10%, and Portugal and Japan, both with 4%. The report also mentions that Mozambique issued “MOZAM 2032” Eurobonds worth 900 million dollars, equivalent to 9% of the total debt.

With regard to external financing, the report notes that multilateral debt has generated positive net flows (an increase in the stock), while bilateral debt has generated negative net flows.

Last week, the president of the World Bank, Ajay Banga, highlighted Mozambique’s role as the base of the electricity market in southern Africa and promised new partnerships to boost the national energy sector. In 2023, the World Bank approved a credit of 300 million dollars for the “Mais Oportunidades” project, which aims to create more than 26,000 new jobs by 2029.