“Protocol should boost bilateral investment” between Portugal and Mozambique

The Portuguese Industrial Association (AIP) held a meeting between Portuguese and Mozambican companies, in partnership with the Confederation of Economic Associations of Mozambique (CTA). Encouraging the establishment of partnerships by companies from both countries that strengthen the economic and commercial relationship between Portugal and Mozambique is the core of a protocol that the two entities signed.

In an interview with JE, the president of the CTA, Agostinho Vuma, outlines the framework of this protocol and establishes very broad limits as far as its assumptions can take companies from both countries.

How far can the protocol that the Confederation of Economic Associations of Mozambique will sign with the Portuguese Industrial Association reach, both in terms of impact on the economy and on companies?

The protocol that will be initialed between the Confederation of Economic Associations of Mozambique and the Portuguese Industrial Association represents a significant milestone in commercial relations between Mozambique and Portugal, which among other objectives aims to increase the competitiveness of the Mozambican private sector, increase commercial exchanges between both countries and search for new partnerships and markets. Commercial relations between Mozambique and Portugal have a long history and are constantly growing. Mozambique is one of Portugal’s most important trading partners in Africa, and trade between the two countries covers a variety of sectors, including agricultural, energy, industrial and technological.

Important relationships, therefore.

It is important to highlight that commercial relations between Mozambique and Portugal are not limited to just the import and export of goods, but also include direct investments, strategic partnerships and the transfer of knowledge and technology. With this protocol, we intend that Mozambican and Portuguese companies can promote bilateral investment, which can boost economic growth, facilitate the integration of supply chains, allowing greater efficiency and competitiveness. In summary, the protocol has the potential to strengthen economic ties between Mozambique and Portugal, promoting economic growth, encouraging investment and improving the competitiveness of companies in both countries.

Does the protocol intend in some way to be the mainstay for increasing Mozambique’s relations with the PALOP? And what about the European Union?

The protocol between the CTA and the CE-CPLP can play a crucial role in strengthening economic and commercial relations between Mozambique and the PALOP, thus benefiting economic development and sustainable growth throughout the region. Facilitation of intra-CPLP Business Confederation (CE-CPLP) trade: promoting intra-CE-CPLP trade, facilitating access to PALOP markets for Mozambican companies and vice versa. Exchange of knowledge and experience: Mozambican companies can have access to knowledge and experience from other CPLP companies, which can be especially valuable considering that the PALOP share the Portuguese language and have similar cultural contexts.

More specifically?

In terms of investment, Mozambican companies invest in the PALOP and vice versa, promoting economic growth and regional development. In infrastructure development, there can be collaborations in the development of infrastructure that benefits not only Mozambique, but also other CPLP countries, thus strengthening economic ties and commercial exchanges between them. Portugal offers a strategic and advantageous gateway for Mozambican companies to access the European market, taking advantage of the country’s location, historical relationships, commercial facilities and logistical infrastructure. Portugal is part of the EU and the Schengen Area, which means that Mozambican companies can benefit from trade agreements and the free movement of goods, services and people between Portugal and other European countries. With Portugal being an important financial center in Europe, Mozambican companies can benefit from access to financing, investment and banking services through Portuguese financial institutions.

What are the priorities for the Mozambican economy in the current year?

Priorities for the Mozambican economy may vary depending on the country’s specific circumstances. However, some of the key priorities that have been frequently highlighted include infrastructure development: investments in infrastructure, such as roads, ports, energy and telecommunications, are key to boosting economic growth and improving the country’s competitiveness. Also the development of the private sector: stimulating private sector growth is essential to create jobs, attract investment and promote sustainable economic development. This includes improving the business environment and promoting entrepreneurship. Another priority is economic diversification: reducing dependence on sectors such as agriculture and natural resources and diversifying the economic base is fundamental to promoting more stable and resilient growth. Other areas include the development of the agricultural sector: investments in the agricultural sector can not only increase food production, but also boost job creation and reduce poverty in rural areas. And by improving the investment environment: ensuring a stable, predictable and business-friendly investment environment is essential to attracting foreign and domestic investment. And also the priority of developing human capital: investing in education, health and professional training is fundamental to increasing the productivity and competitiveness of the Mozambican economy in the long term.