The Portuguese-speaking African Countries (PALOP) and Portugal will today sign, in Maputo, an agreement called "Compacto Lusófono", which includes guarantees valued at 400 million euros.

"It does not apply only to Mozambique, although this country has a very significant expression in the context of the PALOP and will certainly have many opportunities," said the Secretary of State for Foreign Affairs and Cooperation, Francisco André, quoted by Lusa.

The signing will take place on the sidelines of the V Luso-Moçambican Summit and during the stay of the Prime Minister of Portugal, António Costa, between Thursday and Friday.

The Lusophone Compact is an initiative launched in late 2017 by the African Development Bank (AfDB) and the Portuguese government to finance projects launched in Lusophone countries with the financial support of the AfDB and with guarantees from the Portuguese state, which thus ensure that the cost of financing is lower and with less risk.

The main objective of the initiative is to increase private sector development in the six Portuguese-speaking African countries - Angola, Guinea-Bissau, Cape Verde, Mozambique, Sao Tome and Principe, and Equatorial Guinea - through three instruments: risk mitigation to unlock investment, direct financing of private investment, and technical assistance to enhance private sector growth.

The division will be made taking into account the projects presented, according to a government source, without specifying the amount for each country.

António Costa's program in Mozambique, besides the political and institutional component, will include a business and investment forum - an economic seminar aimed at bringing Portuguese and Mozambican companies closer and creating opportunities for joint work.

The Secretary of State pointed out as sectors "fundamental to the Mozambican economy the cases of energy, infrastructures, agro-food, financial services, and banking.

Francisco André then pointed out the "good prospects" for business that are opening up in the future in the Mozambican market, particularly in terms of natural gas.

"It is anticipated that there may be a period of economic expansion in Mozambique," he pointed out.

Thus, for the Secretary of State for Foreign Affairs, "it is necessary to encourage, create incentives and review the financial instruments that already exist today to support Portuguese companies and their investment in Mozambique.

"We will review two existing funds, making it easier to use them to generate more synergies between the two countries in the economic field," he added.