Portugal's Socialist Party (PS) has questioned the Portuguese government over delays in operationalising a €500 million financing facility designed to support Portuguese companies investing in Mozambique, nearly a year after the line was announced by Prime Minister Luís Montenegro, according to the Lusa news agency.

In a letter addressed to the Minister of State and Foreign Affairs, the Socialists recalled that the measure was announced on 9 December 2025 during the 6th Portugal-Mozambique Summit, held in Porto, but that the instrument has yet to become fully available to businesses.

"Almost a year later, the instrument remains not fully operational and the credit line is still not available to Portuguese companies," the letter states.

The PS argues that fundamental questions about the mechanism remain unanswered, including its precise nature, the entities responsible for managing it, applicable timelines and interest rates, eligible sectors, the role of banks, and the guarantees required.

According to the Socialists, the continued uncertainty is damaging companies that had been counting on the financing and risks weakening Portugal's economic footprint in Mozambique at a time when the market is contested by other international investors.

"This uncertainty has real costs. It penalises the companies that were counting on this support, weakens Portugal's economic presence in a market where we compete with other international investors, and undermines the credibility of a commitment made to a friendly country with which Portugal maintains a historic and highly valued relationship," the signatories wrote.

Socialists seek timeline for first disbursements

Through the parliamentary initiative, the PS is calling on the government to clarify the reasons for the delay and to provide an expected date for the credit line to become operational, as well as for the conclusion of the first financing agreements.

The Socialists also want to know whether the government still expects to make the first disbursements in 2026, including an initial tranche of €100 million earmarked for the first year of operation.

The credit line was announced as part of a broader effort to strengthen economic ties between Portugal and Mozambique, with the stated objective of facilitating Portuguese corporate investment in the Mozambican market.

Source: Diário Económico
Original article: https://www.diarioeconomico.co.mz/?p=552880