Fitch Ratings keeps Mozambique’s credit rating at “junk” level
Fitch Ratings kept its “CC” rating on Mozambique’s long-term credit in local currency and the short-term rating in foreign currency at “C”, which means the country’s debt is not considered to be investment quality, the agency said.
In a statement issued on Friday 22 July, Fitch said that it had also given a new rating of “C” on short-term debt in local currency, which is also not investment level or “junk”.
The agency said neither of the two factors for the improvement of the credit rating are currently in place.
These are indicators of strong public finances from foreign sources and previous preferential treatment of local investors in relation to foreign investors.
The “CC” credit rating means, according to the table prepared by Fitch Ratings, the debt issued presents a very high risk; and the “C” rating stipulates that the issuer is expected to default on payment or is negotiating new terms with creditors.
Last week, the spokesperson for Lazard Ltd. announced that the company had been hired by the government of Mozambique as a financial advisor to value its foreign debt, and the Mozambican Minister of Economy and Finance, Adriano Maleiane, hired White & Case LLP as legal consultant to value foreign debt.
“The future of Mozambique’s economy lies is in the exploitation of its maritime resources” – Chissano
On Monday 25 July, the former president of Mozambique, Joaquim Chissano, said that the future of the country’s economy lies in the exploitation of its maritime resources.
Speaking at a seminar held in Maputo under the theme ‘Blue Economy: Opportunities to Leverage Development in Mozambique’, the former head of state said he believes that it is possible to transform the lives of all Mozambicans by exploiting the potential that the sea has to offer.
“It is with an ever deeper understanding of the potential of Mozambican waters that we can take greater advantage of marine resources for the benefit of the population”, said Chissano.
The former head of state praised the creation of the Ministry of the Sea, Inland and Fisheries, urging that Mozambique should to more in the sector in order to emerge as a major player in the blue economy.
According to Chissano, Mozambique’s position in the Indian Ocean offers enormous potential in terms of energy resources, maritime routes, international trade, food industry and tourism.
The former president said that the sustainable exploitation of the maritime economy will give Mozambique the opportunity to improve its trade balance.
Chissano also warned that there are numerous threats to the country’s waters, such as trafficking and piracy
Source: Folha de Maputo/Lusa/O País
China-Africa partners assess co-operation
Delegations from 53 African countries (including Mozambique) met with representatives of China between 28 and 29 July in Beijing in order to assess the implementation of the understandings and agreements reached during the China-Africa Cooperation Forum (FOCAC).
The Mozambican delegation was headed by the Deputy Minister of Foreign Affairs and Cooperation, Nyeleti Mondlane, as well as the Director for Asia and Oceania (DAO), Belmiro Malate.
Among other things, the event discussed what African countries could do in order to benefit from the funding of US$60-billion announced by President Xi Jinping, during the Johannesburg Summit last December.
According to the Foreign Minister of China, Zhang Ming, the meeting provided the opportunity for the participating nations to review the progress made in implementing the outcomes of the Johannesburg Summit and to discuss the plans going forward as well as new developments.
Asked about the criteria for accessing the US$60-billion funding, the minister said that the Chinese loans will predominantly be for construction of infrastructure, helping to improve the development of the investment environment and independence capacity for sustainable growth.
Source: Jornal Notícias
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