A recent press report said that the Export-Import Bank of India has approved a concessional loan of 13 million US dollars to finance the construction of a solar panel factory in southern Mozambique.
Reports said that the credit agreement was signed in Maputo by Mozambique’s Minister of Finance, Mr. Manuel Chang, and Exim-Bank chairman, Mr.TCA Ranganathan.
Mr. Chang at the signing ceremony said that the loan is based on concessional terms and the repayment period is to be spread over twenty years with a five year grace period. He said that the production of photovoltaic solar power panels will enable rural areas to be electrified.
Mr. Chang said that the project will create new jobs for Mozambican technicians, will improve health care through the increased capacity to store vaccines and other drugs in rural areas, and will expand education and literacy, apart from improving the supply of solar power.
Reports also said that the construction of the factory will create 700 jobs, and once fully operational the factory will employ 70 people. The factory will reduce the cost of importing solar panels, which is estimated to be running at between five and six million dollars a year.