Japan loans Mozambique $850m to develop access to resources
MAPUTO (REUTERS) - Japan will lend Mozambique 70 billion yen (S$850 million) over five years, Prime Minister Shinzo Abe said on Sunday, as the Asian nation seeks to secure access to the East African country's rich coal and gas reserves.
The former Portuguese colony has seen a spike in foreign investment since it hit on huge gas reserves and hopes to use its mineral findings to develop industry and boost its economy, still scarred by the civil war which ended two decades ago.
"(Our assistance) is aimed at securing access to the vast mineral resources Mozambique boasts, namely, gas and coal, as well as agriculture products," Mr Abe told reporters after meeting Mozambique's President Armando Guebuza.
Mr Abe said the loan showed Japan's willingness to help develop infrastructure and would be invested in the country's northern Nacala Corridor Region, which includes a deep-water port and a railway that connects to neighbouring Malawi.