Mozambique’s Minister of Industry and Commerce, Carlos Mesquita, says that India has been one of Mozambique’s main trading partners and, in 2018, occupied second place by volume at an estimated US$1.882 billion .
Much of the volume of trade between both countries (76%) represents exports from Mozambique to that Asian country, giving a trade surplus in favour of Mozambique. Coal, cashew nuts and pulses predominate among the exports.
Speaking during the opening of the first ever virtual conference between India and Mozambique on Chemical Sector in Maputo this Monday, Minister Mesquita said he believes that there is potential for the diversification in the products forming the basis of bilateral trade.
“A strong chemical industry presence in Mozambique, specifically focused on the production of manures and fertilisers, can result in considerable benefits for Mozambican agriculture, ensuring greater productivity of fertile and arable land,” the minister suggested, challenging Chemexcil (India’s Basic Chemicals, Cosmetics & Dyes Export Promotion Council) to develop and increase its investments in this industry and throughout the value chain.
In another development, Carlos Mesquita said he believed that India, being a developing country, can help the Mozambican private sector respond to the problems facing the economy.
“We hope that this reflection will help bring the answers that our economic sector must produce in the face of the challenges of maintaining productive activity and jobs, for strengthening our economy and promoting social balance, taking into account that the employment and productivity are effective ways of ensuring the social stability of societies,” Mesquita said.
The three-day virtual meeting takes place under the motto “Fostering business ties in the chemical sector between Mozambique and India”.
India’s High Commissioner Rajeev Kumar pointed out to participants that “Indian investment in Mozambique exceeds US$7 billion, representing 25% of India’s total investment on the African continent”.
“India has development exposure in the form of concessional credit lines worth more than US$772.44 billion in areas of public impact, such as energy, roads, IT and technology and water supply, among others, and has offered donations of millions of dollars to help Mozambique in the processing of cashew, cotton, etc.,” Kumar observed.
Regarding the forum, the High Commissioner of India in Mozambique said there was a huge lack of information between the two countries. Events like this, he said, would help fill these information gaps, and allow the exploitation of the existing potentials between the two countries.
