China continues its bullish investing in Africa. This time in Mozambique.
China will invest $13 billion in Mozambique over the next five years to develop industrial, tourism, mining and energy projects, the Noticias reported, citing Planning and Development minister Aiuba Cuereneia.
Among the projects are a car factory and hydro-electric dams, the state-run, Maputo-based newspaper said. Cuereneia said Mozambique is targeting 1 million tourists from the Asian country each year, according to the report.
Sao Ungru, head of the Chinese delegation, told the Noticias the countries agreed to establish a $2 billion investment fund for projects by Chinese companies in Mozambique.
The two countries also agreed to establish a $2-billion investment fund to support Chinese companies operating in the southern African nation.
China will also introduce direct flights between Mozambique and Shanghai, with the aim of drawing one million Chinese tourists a year, Mozambique’s minister of planning and development told the newspaper.
Chinese companies have been making inroads into Mozambique, winning major infrastructure and construction projects as the Asian nation increasingly targets resource-rich Africa.
However, local firms have accused some of their Chinese rivals of causing environmental damaged and using convicts from the mainland as laborers.