Portugal has announced a €500 million credit line to support Portuguese companies investing in Mozambique in what officials described as a major show of confidence in the southern African nation’s political stability and economic potential.
The pledge was unveiled by Prime Minister Luís Montenegro at the conclusion of the sixth Portugal–Mozambique Bilateral Summit in Porto on Tuesday, where he was joined by Mozambican President Daniel Chapo.
The summit also produced 22 cooperation agreements focused on trade, development and economic diversification.
Montenegro said the financing facility is designed to encourage Portuguese firms to expand into Mozambique, highlighting the country’s stabilisation process and economic ambition.
“We want to show our confidence in Mozambique’s economy and tell Portuguese companies that we are supporting them in the process of internationalisation,” he noted.
The new credit line is expected to provide Portuguese companies with greater confidence to enter or expand operations in sectors such as energy, construction and agribusiness.
Officials from both sides said technical teams will now work on implementing the financing facility to ensure that investment projects contribute to job creation, sustainable growth and stronger bilateral economic relations.
The final declaration of the summit placed economic and sustainable development at the top of the bilateral agenda.
Both governments are committed to strengthening coordination mechanisms to maximise financing instruments and promote business partnerships that can drive growth and diversification in Mozambique.
The announcement underscores the depth of ties between Portugal and its former colony, which have evolved from historical links into a modern partnership centred on investment, trade and development cooperation.
Portugal has long been one of Mozambique’s key European partners, supporting infrastructure projects, education and governance reforms while encouraging private sector engagement.
Mozambique, rich in natural resources including coal and natural gas, has sought to attract foreign investment to rebuild its economy after years of conflict and instability.