#lula Brazil businesses to invest $500-million in Mozambique

MANUEL MUCARI | MAPUTO, MOZAMBIQUE - Nov 16 2010 14:15

A group of Brazilian businesses that sent representatives with outgoing president Luiz Inacio Lula da Silva on his farewell visit to Mozambique last week have pledged to invest up to $500-million in the country, a local newspaper reported on Tuesday.

The delegation, which remained in Mozambique to scout for investment opportunities after Lula had left, said it was particularly interested in the mining, energy and services sectors, O Pais daily reported.

Mining giant Vale and energy company Camargo Correia were among the 25 companies that expressed interest in ramping up their dealings in Mozambique after a meeting with government and the private sector Monday, the O Pais report said.

Vale is already involved in a 1,3-billion-dollar coal mining project in northern Tete province, while Camargo Correia is to build a new dam over the Zambezi river, also in Tete.

Those investments have created opportunities for their suppliers, who are looking to establish joint ventures with Mozambican companies in order to bag contracts in Mozambique.

"If the domestic market proves viable, Brazilian investments will be of around $500-million in the coming years," Paulo Henrique, marketing director of the Brazil-Mozambique Chamber of Commerce, was quoted as saying.

Trade between the two former Portuguese countries is currently heavily skewed in Brazil's favour.

Brazil's exports to Mozambique are worth more than $100-million annually. Mozambique's exports to Brazil are worth under $2-million. -- Sapa-DPA

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