India-Mozambique to deepen bilateral cooperation in engineering goods sector

To provide a fresh momentum to economic relations between India and Mozambique the High Commission of India, Maputo in collaboration with Confederation of Economic Associations (CTA), Mozambique and Engineering Export Promotion Council (EEPC) of India organized a virtual conference on Engineering Goods sector on 09th September 2020 in Hotel Polana Serena, Maputo. 50 companies from each side participated in the conference.

In his opening remarks, Chairman EEPC, Mahesh Desai, highlighted the importance of this conference and said that the Engineering goods sector has immense potential to deepen the bilateral relations. He highlighted about the current scenario of the Indian Engineering goods sector and potential in upcoming years.

Speaking on the occasion, Castigo Nhamane, Vice-President of CTA shared that the forum is very important especially in this time of uncertainty due to COVID-19 pandemic. He mentioned that India is one of the main trading partner of Mozambique. He also said there is a potential for diversifying the range of products in various sectors on the basis of trade between two countries. He also pointed that Engineering goods sector is one of the priority sector in Mozambique with a special emphasis on agriculture, healthcare and infrastructure.

While addressing the conference, High Commissioner of India H.E Rajeev Kumar mentioned about the excellent bilateral relations between India and Mozambique reflected in trade and investment between two countries and this type of events further deepens the commercial relations. HCI Maputo has already organized many such events since August 2019 to bring the companies from India and Mozambique on a common platform for mutual benefits. The presence of more than 50 Indian companies in Mozambique is an indicator of better future. Many Indian companies have invested in Mozambique’s coal sector namely ICVL, Jindal, Tata Steel, Essar etc. and coking coal represents almost 65% of Mozambique’s exports to India. Three Indian PSUs, OVL, BPCL and Oil India have a huge investment of approx USD 7 billion in gas sector in Rovuma-1.

India supports Mozambique in form of LoCs (concessional loans) and more than USD 772 million were financed in the areas of public impact, such as electrification, roads, IT and technology, drinking water supply, etc.

High Commissioner of India H.E Rajeev Kumar

He mentioned that revenues from capital goods industry in India is expected to grow to USD 115.17 billion by 2025, which shows potential of Indian Engineering goods sector. He also encouraged CTA and EEPC to sign an MOU for future cooperation.

H.E. Ludovina Bernardo, Deputy Minister of Industry and Commerce of Mozambique presented a keynote address. She first thanked the Indian Government for all the assistance they received during the Cyclone IDAI and Keneth. She said the relations between the two countries are marked by healthy mutual cooperation in the economic and commercial domain, and further strengthened by the increase in bilateral visits at the highest level from both sides. She said Mozambique-India Business and Investment Forum serves as a platform for the promotion of commercial exchanges, to boost partnerships and business opportunities that can bring synergies between two countries, even during the restrictions that are imposed due to the COVID-19 pandemic.

During the last 5 years, the Indian Foreign Direct Investment (FDI) in Mozambique is 71 million USD, having created around 8,405 jobs for Mozambique nationals.

H.E. Ludovina Bernardo, Deputy Minister of Industry and Commerce of Mozambique

She said the Government’s Five-Year Program – PQG 2020-2024 has a Priority of “Boosting economic growth, productivity and job creation” and its Strategic Objective to Improve the business environment to attract national and foreign private investment. She also mentioned that Mozambique – India Business and Investment Forum comes as an element that would contribute with constructive ideas to make the flow of trade more flexible and boost partnerships. She reiterated the invitation to Indian companies to consider Mozambique as one of the best destinations for investment and to increase bilateral trade between the two countries.

The event proved to be a good platform for companies to present and discuss their range of products and services and possible collaboration in the Engineering Goods sector. After the presentation from representatives of some key sectors, at the end of the virtual conference around 32 B2B meetings were held between both sides. It also provided a platform to enhance trade and investment in the Engineering Goods sector between the two countries. The event was well covered in local print and electronic media.

The virtual conference was organized with the financial support from the Economic Diplomacy and States Division of Ministry of External Affairs, New Delhi.

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