2Expansion of RelationsChina-Mozambique relations did not advance significantly in the 1990s in spite of thefact that China became
natural partner after the collapse of the Soviet Union. Bythe late 1990s, high level contact picked up in both directions with Chissano going to China in
1998 and 2004 and Mozambique’s premier visiting three times.
They signed new trade
agreements and China built Mozambique’s Ministry of Foreign Affairs.
The relationship took off in the 21
century. President Armando Guebuza attended the2006 Forum on China-Africa Cooperation (FOCAC) and returned for the 2008 Olympic Games.Chinese President Hu Jintao visited Maputo in 2007 when he promised several new projects,including a $6 million agricultural technology center that was inaugurated in 2011 and a nationalstadium.
China canceled $52 million of Mozambique’s debt.
As with most other African countries, the security relationship has consisted primarily of high-level exchange visits. In 2007, however, China gave the armed forces $1.5 million innonmilitary equipment. Two years later it agreed to provide the military $3 million for thepurchase of logistical equipment and to continue to train the military. In 2008, FRELIMO andthe CPC signed a four year memorandum on cadre training; China sends lecturers to
FRELIMO’s Central School.
Most of China’s engagement in Mozambique is now focused on the economic
relationship. A third of all roads in the country are being built by Chinese companies in additionto the auditor-
general’s office, Maputo International Airport, national soccer stadium,
nationalconference center, communications networks, and water supply projects. China began offeringfive scholarships annually in 1992; about 200 hundred students were studying in China by 2012.A joint Sino-Lusophone initiative known as Geocapital based in Macau created in 2005-2006 a private fund with the aim of channeling Chinese capital to Mozambique. This resulted ina joint venture called Zamcorp to promote development in the Zambezi River Valley. As of late2011, Zamcorp had no projects under development. On the other hand, two financial institutionsgrew out of this effort: Moza Capital (investment banking) and Moza Banco (primarily corporatebanking). By 2008, Moza Banco established a retail bank with Mozambican investors who haveclose ties to FRELIMO. Although Moza Banco has not funded any big investments, it is lookingat projects in energy and agro-industry. This initiative has had surprisingly little success so far.Nevertheless, in 2008, China became the second largest investor in Mozambique afterSouth Africa and rose from number 26 a decade earlier. As of 2010, China had invested $607million in Mozambique. In 2010, China pledged to invest $13 billion in industrial, tourism,mining and energy projects over the next five or ten years, depending on the source of the report.It is highly doubtful, however, that all of this investment will materialize. The largest Chineseinvestment so far is Wuhan Iron and Steel
$800 million to develop coal reserves