China scores major share of Moz road upgrade projects

Sixth largest investor KEVIN MAYHEW CHINESE COMPANIES have scored over a third of the contracts for construction of Mozambique roads, a total of 600km, according to Emmy Bosten of the International Monetary Fund (IMF) in Mozambique. “The Chinese embassy in Mozambique actively informs Chinese construction companies about international public tenders for road building. They have consequently been awarded the major share of contracts to date for a $1.41bn investment in road safety, maintenance and rebuilding by 2011, according to the Mozambique Roads Administration (ANE). “Mozambique authorities say that Chinese construction companies carry out work of good quality, within contracted deadlines and at a cost that can be 25% cheaper than its rivals,” Bosten said. According to figures from Mozambique’s Centre for Investment Promotion (CPI), Chinese direct investment makes China Mozambique’s sixth largest investor – having increased its investment from a mere 243 000l Euros in 2005 to 4.4m in 2005. In 2005 trade between the two countries totalled 125m Euros.