Mozambique, Portugal Sign Deals Which End Decades of Post-colonial Legacy

Mozambique and Portugal on Monday signed cooperation agreements opening up a new cycle in bilateral relations between the two countries, ending a 30-year post-colonial legacy.

This came about as the Portuguese President; Anibal Cavaco Silva on Monday began a three-day official state visit to Mozambique, which he described as “a new cycle” in bilateral relations.

“We hope that this visit could open a new cycle of cooperation especially in the economic and business spheres”, Silva told a joint press conference with his host, President Armando Guebuza, after official talks between delegations of the two governments.

In his turn, President Guebuza described Cavaco Silva as “a great friend of Mozambique”, adding that talks between the two governments could be very open in the future, and it was this climate of openness that had made possible the successful negotiations over transferring a majority stake in the Cahora Bassa dam on the Zambezi from Portugal to Mozambique.

“We have seen concrete signs which result from the government’s strategy on opening up for more Portuguese investments in Mozambique, not only in simplifying the investment procedures, but this visit also shows the trends of increase in Portuguese investments in a favorable environment”, Guebuza said.

This is the first time ever that Mozambique and its former colonial master ink cooperation ties.

Both countries have been locked in a three-decade stalemate talks for Mozambique to retain the majority shareholding of the Hidroelectrica de Cahora Bassa (HCB), which was finally signed in 2006.

Mozambique paid U$950 million after raising U$700 million from a Franco-Mozambican banking consortium, which will be repaid out of the sales of Cahora Bassa electricity.

“The environment is (now) favorable for intensifying our cooperation, and bilateral economic ties should be stepped up to the benefit of our peoples and our countries,” Guebuza said.

Both presidents stressed their interest in attracting more Portuguese investment to Mozambique.

Four cooperation agreements on civil aviation, military, and some amendments to the 1991 agreement on dual taxation, which is aimed at avoiding paying tax in both countries on the same income, were sealed.

Mozambique gained its independence from Portugal in 1975 after a ten-year liberation struggle which ended 500 years of colonial domination.

Portuguese investments have declined in recent years, but the former colonial power remains in the top 10 investors in Mozambique.

In 2007, Portugal stood at the 7th position in the list of largest sources of foreign direct investment, behind China, South Africa, UK, Mauritius, Switzerland and the USA.

Source African Press Agency

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