Economy

Mozambique, Portugal deepen ties through green debt conversion talks

Date: Jul 5, 2025

Mozambican President Daniel Chapo is in Lisbon, Portugal for an official visit, as the two countries explore new avenues of co-operation, particularly the conversion of sovereign debt into green economy projects.

The visit, taking place on Thursday, is seen as a key moment in the growing partnership between Mozambique and Portugal. Chapo is scheduled to hold high-level talks with Portuguese President Marcelo Rebelo de Sousa and Prime Minister Luís Montenegro. Central to the discussions is a proposal to redirect debt repayments into sustainable development initiatives, a move that could ease fiscal pressure on Mozambique’s national budget while advancing its environmental goals.

Speaking at the recent Fourth International Conference on Financing for Development in Seville, Spain, Chapo highlighted Portugal’s openness to such agreements, along with growing interest from other European Union countries. He said this willingness signals a potential shift in global financing practices for developing economies, where debt swaps could play a key role in addressing both financial and climate challenges.

To further examine the significance of this diplomatic engagement, Portuguese academic Professor José Francisco Pavia, noted that the initiative could mark the beginning of a more balanced and forward-looking relationship between Europe and Africa, rooted in shared sustainability priorities.

--ChannelAfrica--

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