MAPUTO (NNN-AIM) -- The Export-Import Bank of India has approved a concessional loan of 13 million USD to finance the construction of a solar panel factory in southern Mozambique.
The credit agreement was signed here earlier this month by Mozambique’s Minister of Finance, Manuel Chang, and the India Exim Bank chairman, T.C.A. Ranganathan.
Speaking during the Sept 1 signing ceremony, Chang explained that the loan was based on concessional terms with repayment to be spread over 20 years with a five-year grace period.
Chang pointed out that the production of photovoltaic solar power panels would enable rural areas of Mozambique to have electricity.
"This project, apart from improving the supply of solar power, will create new jobs for Mozambican technicians, will improve health care through the increased capacity to store vaccines and other drugs in rural areas, and will expand education and literacy,” he added.
Chang acknowledged the role of the Indian government and the Exim Bank in searching for appropriate mechanisms for contributing to Mozambique’s development and for the improvement of living conditions.
The construction of the factory at the industrial park at Beluluane in Maputo province is due to begin later this year. Constructing the factory will create 700 jobs, and once fully operational the factory will employ 70 people.
The factory will reduce the cost of importing solar panels, which is estimated to be running at between 5.0 million and 6.0 million USD a year. -- NNN-AIM
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