President Daniel Chapo began an official visit to Portugal on Thursday, aiming to secure a landmark agreement that would convert part of Mozambique’s sovereign debt into green economy investments.
The proposal, which Chapo also championed at the recent UN Financing for Development conference in Seville, reflects Maputo’s push for innovative climate finance solutions amid mounting fiscal pressures.
Chapo is scheduled to meet Portuguese President Marcelo Rebelo de Sousa and Prime Minister Luís Montenegro to discuss the debt conversion initiative, alongside broader efforts to deepen bilateral cooperation.
According to the Portuguese Presidency, the two heads of state were due to hold a working lunch in Belém to advance talks.
Mozambique’s debt to Portugal currently stands at approximately €675 million, a significant portion of its external obligations.
The government hopes that transforming this liability into climate-focused investments – such as renewable energy, sustainable agriculture and carbon credit initiatives – will ease budgetary constraints while accelerating its green transition.
Chapo described Portugal as a brotherly country, citing historical and cultural ties that date back to Mozambique’s independence in 1975.
The relationship was recently reaffirmed during the 50th anniversary celebrations in Maputo, attended by de Sousa.
Mozambique’s proposal aligns with a growing global trend of debt-for-climate swaps, which aim to redirect debt repayments toward sustainable development goals.
JN/APA