Africa-Press – Mozambique. There is no chance that the loan of 88.7 million dollars that the Mozambican government has contracted with the Exim Bank of Korea will become another “hidden debt”, according to the Ministry of Economy and Finance.
The loan has been roundly denounced in some of the more sensationalist parts of the Mozambican media, but the Ministry insists there is nothing illicit or underhand about it.
A note from the Ministry says that the loan is intended to build the capacity of the police force in maintaining public order, and was ratified by the Council of Ministers (Cabinet) on 21 September.
Every year the Mozambican parliament, the Assembly of the Republic, passes a budget law which authorises the government to contract domestic and foreign loans. The 2021 budget law authorises the government to contract foreign loans for “economically viable infrastructure projects”, provided at least 28 per cent of the loan is “concessional” (i.e. soft).
In the case of the deal with Korea, 73.74 per cent takes the form of a soft loan, says the Ministry note.
Wednesday’s issue of the independent newssheet “Carta de Mocambique” publishes details of what the money will be spent on. Much of the loan will be used to instal closed circuit television systems which should help the police control crime and traffic accidents in the urban centres.
The money will also pay for a digital fingerprint verification system to assist in criminal investigation.
A central operations room will be set up in Maputo, and there will be other operations rooms in the cities of Matola and Nampula, and in several northern municipalities. The project will run from 2021 to the end of 2025.
