Turkey to invest $1bn in Moz
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.