VOL. NO: 49      DATE:
 

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AFRICAN ECHO BUSINESS NEWS
Complied by Cass Gilroy-Business Editor

Denmark signs agreement to support Mozambique’s communications sector

Mozambique and Denmark have signed an agreement in Maputo, under which Denmark is to grant 15 million Euros (about 19 million US dollars) to finance the second phase of the National Fibre-Optic Transmission Network. The document was signed by the Mozambique Finance Minister, Manuel Chang, and Egil Rindorf, First Deputy Chairperson of the Nordea Bank, of Denmark. 

The second phase of the project, which is to start by April or May 2007, plans to link the northern cities of Cuamba, Lichinga, Nampula and Pemba, to the fibre-optic network. It also includes a link in central Mozambique between Chimoio, Tete and Caia. The project is being implemented by the publicly owned telecommunications company, TDM. 

Speaking on the occasion, Chang explained that "this is a mixed credit, part of the money being a donation, and the other a loan, with zero per cent interest". He added that the financing represented the acknowledgement by the Danish government of the importance of developing the Mozambique Transport and Communications sectors. 

He pointed out that the idea is to have all the country's provincial capitals linked through fibreoptic cables when the second phase is concluded. For his part, Rindorf said that Denmark felt encouraged to grant the money because of the good progress noted in the first phase, which is nearing conclusion.

 

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