Mozambique and China have signed a supplementary framework agreement to reschedule public debt repayments, following recent meetings between President Daniel Chapo and his Chinese counterpart, Xi Jinping, during a state visit to the Asian country.
The agreement was signed on Monday, 26 October, by Finance Minister Carla Loveira, representing the Mozambican government, and the ambassador of the People’s Republic of China in Maputo, Zheng Xuan.
The agreement falls within the Medium-Term Public Debt Management Strategy 2025–2029 and constitutes an important step towards aligning debt payments with the country’s financial capacity, strengthening the sustainability of public finances, according to a press release from the Ministry of Finance.
Photo: Ministério das Finanças
On the occasion, Loveira expressed satisfaction with the signing, noting that the agreement’s main impact would be to ease immediate pressure on the State Budget, allowing greater predictability in the management of public resources and creating conditions to strengthen financing for economic and social priorities.
“This adjustment will help preserve the State’s capacity to invest in infrastructure, ensure the provision of essential services and respond to the needs of the population, reconciling the fulfilment of financial commitments with the demands of national development,” Carla Loveira said.
Implementation of the agreement will continue with the formalisation of the necessary instruments with the Export-Import Bank of China (Exim Bank).
The Government of the Republic of Mozambique expressed its appreciation to the Government of the People’s Republic of China and Exim Bank for their willingness and spirit of cooperation, reaffirming its commitment to prudent public debt management and to mobilising resources for economic and social development.
For her part, China’s ambassador to Mozambique, Zheng Xuan, praised the historic ties of friendship and cooperation between the two countries, stressing that the agreement reflects the understandings reached between them.
The diplomat reiterated the Chinese government’s willingness to continue supporting Mozambique, particularly in financial cooperation, reaffirming its commitment to deepening the bilateral partnership for the country’s economic and social development.
The adjustment of debt repayments is an important instrument for reducing immediate pressure on the State Budget, improving the predictability of financial obligations and strengthening public cash-flow management. In addition to adjusting payment schedules, the process aims to create greater fiscal space for pursuing national priorities, contributing to more efficient and sustainable public finance management.
The signing of this agreement thus reaffirms Mozambique and China’s commitment to consolidating a long-term partnership based on dialogue, mutual trust and economic and financial cooperation, for the benefit of Mozambique’s development.
Source: Notícias / Ministério das Finanças