Tur­key to in­vest $1bn in Moz

The Star Early Edition - - BUSINESS REPORT -

TUR­KEY will in­vest $1 bil­lion (R13.41bn) in Mozam­bique over the next two decades, Pres­i­dent Re­cep Tayyip Er­do­gan said dur­ing a two-day visit to the coun­try which is strug­gling to at­tract for­eign in­vest­ment. Mozam­bique’s fi­nances have been in trou­ble since early 2016 when it emerged that the gov­ern­ment had with­held in­for­ma­tion about the mag­ni­tude of its in­debt­ed­ness while ar­rang­ing new credit. It has since said it missed in­ter­est pay­ments for ex­ter­nal com­mer­cial loans, in­clud­ing a $60 mil­lion coupon on Jan­uary 18. Mozam­bique’s econ­omy is heav­ily de­pen­dent on com­mod­ity ship­ments and donor aid for rev­enue. It had con­tracted loans of $12bn at the end of 2016, ac­cord­ing to In­ter­na­tional Mon­e­tary Fund es­ti­mates. The len­der with­drew its mon­e­tary sup­port for the coal-pro­duc­ing na­tion in April. Trade be­tween the two coun­tries amounted to $150m in 2016 and could grow in the next five years to $500m. Tur­key also in­tends build­ing 16 000 homes and help­ing “in the ur­ban­i­sa­tion of the cap­i­tal city”. Er­do­gan called for sup­port in fight­ing “ter­ror­ist cells” in Mozam­bique and said a com­pany in the coun­try be­longed to groups that fi­nanced what he called ter­ror­ism.

Newspapers in English

Newspapers from South Africa

© PressReader. All rights reserved.