China may become involved in establishing industrial parks in Mozambique to help modernise agriculture and create bases for industrialisation, said Mozambique’s Deputy Minister of Foreign Affairs and Cooperation, Nyeleti Mondlane, while in Beijing. Deputy Minister Mondlane was taking part in the Fourth Forum for China/Africa Cooperation, held on 28 to 30 July in Beijing.
The gathering brought together more than 100 top African ministerial officials and sought to determine how African countries can benefit from the US$60-billion in financing placed at their disposal by Chinese President Xi Jinping during the Johannesburg Summit.
Deputy Minister Mondlane said that in the scope of support for African agricultural modernisation and development China had pledged to implement 100 projects in various countries and to send 30 teams of experts to the continent, besides establishing co-operation mechanisms with African agricultural research institutes.
She stressed that the industrial parks should result in Mozambique changing from subsistence agriculture to modern, sustainable agriculture whose products can enter the commercial and industrial chain.
Austerity measures thwart infrastructure projects in Sofala Province
In Sofala Province, infrastructure projects valued at approximately MT80-million have been put on hold as a result of austerity measures. Sofala government spokesperson, Élcio Canda, broke the news at a press conference on Monday 1 August, after a meeting between the governor of the province and members of the Parliamentary Commission on Agriculture, Economy and Environment. According to Canda, the rehabilitation of roads and public infrastructure projects, such as bridges and water supply systems, are among the list of projects that will not be implemented this year.
Source: Rádio Moçambique
Mozambique sets foreign-exchange limits – Standard Bank
Mozambique has instituted restrictions on foreign-exchange withdrawals and sales, Standard Bank Group Ltd.’s unit told account holders in the cash-strapped southern African nation, in an e-mail seen by Bloomberg.
“In response to restrictions on the import of foreign currency notes by the Mozambican Reserve Bank, Standard Bank has been compelled to administer the following restrictions in managing this situation”, the lender said.
“Effectively immediately foreign currency cash withdrawal and sale of foreign currency by account debit, shall observe the following monthly limits: US$500, ZAR1,000 rand and €500”, it said.
Access to credit – movable warranties law on the cards for Mozambique
According to Notícias, the Ministry of Justice, Constitutional and Religious Affairs has presented a proposal to regulate movable warranties – introducing a movable property register – to facilitate credit guarantees based on such property.
Currently, credit is only granted against real estate, while other property deeds such as mineral, oil, credit and others, are ineligible as guarantees.
The Chairman of the Financial Policy of the Confederation of Business Associations of Mozambique (Confederação das Associações Económicas de Moçambique, CTA), Luís Magaço, however, said that his colleagues received for consideration a government proposal for a Secured Transactions Law that “will allow for the expansion of the instruments required by the financial sector to provide credit”.
Magaço was speaking this week in Maputo during a consultation workshop on the proposed Secured Transactions Law sponsored by the CTA.
The event brought together representatives of various private entities, specifically from the financial sector. Participants discussed a draft law aimed at creating a legal framework for guarantees based on goods not previously subject to property registration.
This instrument will provide for the creation of a central guarantee registry which will have as its primary mission the electronic registering of information on the guarantees on movables.
“The CTA shared this proposal with its members, and the workshop debate revolved around the proposed law, especially in relation to its advantages for the improvement of the business environment”, Magaço explained.
Magaço said that he most important aspect of the bill was the facilitation of credit and the safety of creditors, including banks. The proposed Secured Transactions Act arises from need for the country to promote access to credit through the establishment of a system that diversifies and strengthens legal certainty in the provision of movables as guarantees, as well as the availability of information about them.
Source: Agencia de Informacao de Moçambique/Jornal Notícias
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