Maputo (Mozambique): Applauding Mozambique as one of the fastest growing economies of the world in recent decades, Prime Minister Narendra Modi on Thursday said as two developing countries, both India and Mozambique are facing similar challenges, and thus, development and economic partnership are an essential part of the relationship between the two nations.


"Today, we applaud Mozambique as one of the fastest growing economies of the world in recent decades. Excellency, as two developing countries we face similar challenges. Our development and economic partnership, therefore, has been an essential part of our relationship," said the Prime Minister at a banquet hosted by Mozambican President Filipe Nyusi.

"Our trade and investment ties have particularly flourished in recent years. We want to build further on it. For this, India remains ready and committed to share its experiences, technology, capacity and concessional credit with Mozambique, in line with your priorities," said Prime Minister Modi who arrived here in the evening.

Emphasising that the relationship between our countries is not new, Prime Minister Modi said, "Thousands of Indian-origin people call Mozambique their home. I am told that most of the Siddi community that resides in parts of India is known to trace its ancestry to Mozambique. These communities are a living testimony to age old links that have connected our people, their ideas and traditions, and culture and commerce."

Noting that both the countries suffered under the colonial rule, the Prime Minister said, "In the case of Mozambique, the struggle was much longer. Independent India was one of the leading advocates of Mozambican freedom from colonial rule. We were proud to see Mozambique join the ranks of free nations in 1975."

"Last year marked the 40th anniversary of Mozambican independence and of establishment of our diplomatic ties. It also saw a level of interaction between our nations, never seen before. Its high point was your own State Visit to India in August 2015. Later, your Prime Minister honoured us with his presence during the third edition of the India-Africa Forum Summit. Excellency, I am aware that I am the first Indian Prime Minister to visit Mozambique in 34 years. This gap should never have been so long. And, I am confident that it will not be so in future," the Prime Minister noted.

"With these words, Excellencies, Ladies & Gentlemen, please join me in raising a toast: to the health, happiness and well-being of His Excellency, President Filipe Jacinto Nyusi; to lasting peace, progress and prosperity among the people of Mozambique; and to strong bonds of friendship and cooperation between India and Mozambique," he added.

Earlier, Prime Minister Modi said India and Mozambique recognise terrorism as the gravest security threat facing the world today, and thus, both the nations have agreed to strengthen their defence and security relationship.

Prime Minister Modi and President Nyusi also witnessed the signing of three agreements on reduction of drug trafficking and psychotropic substances and related materials, cooperation in the field of youth affairs and sports, and long term agreement for purchase of pulses.

The three Memoranda of Understanding (MoU) were signed between secretary of economic relations in the Ministry of External Affairs (MEA) Amar Sinha and Minister of Finance of Mozambique.

New Delhi committed to buying one lakh tons of 'arhar' from Mozambique

Secretary (Economic Relations) Amar Sinha said Thursday that India is committed to buying one lakh tons of 'Arhar' from Mozambique this year, and will increase the limit by 25, 000 tons every year thereafter.

Sinha said that New Delhi will also assist Mozambique with new technologies and seeds to help that nation increase its agricultural output.

"Arhar dal is produced here (Mozambique) in abundance. So, we have guaranteed to take one lakh tons this year and will increase by 25,000 tons every year. Along with this, we will also provide them new seeds and teach them new techniques to increase their productivity," said Sinha.

Sinha further said that the pricing at which India will buy pulses from Mozambique is linked with the minimum support price (MSP) provided to farmers in India for mutual profits.

Sinha said, "The (bilateral) discussion covered a wide range of issues right from Diaspora to defense to maritime security, food security and of course, capacity building in agriculture."

Discussions were also held about the investment climate and how favorable conditions can be created for Indian investors in Mozambique.

Sinha pointed out that Prime Minister Modi has handed over a special booklet created for explaining the ground situation of Maputo to Indian investors.

The two countries have signed three MoUs.

"One deals with drug trafficking, contraband and psychotropic chemicals and second is for cooperation in youth and sport, which is very significant because 66 percent of Mozambique population is below 34 years of age and they wish to learn from our own experiences. The third and the most critical one relates to our food security quest," said Sinha.

The senior MEA official further revealed that the Prime Minister has reiterated his view that he saw Mozambique as India's gateway to Africa.

Indian Prime Minister Narendra Modi reached Mozambique on Thursday, as a part of his four nation tour of the African continent.

He is the first Indian head of government to visit Mozambique after 34 years.

During his five-day four-nation tour to Mozambique, South Africa, Tanzania and Kenya.

Energy, food security, trade, maritime cooperation and diaspora interactions will remain high on the Prime Minister's agenda for discussion.

The Prime Minister is also expected to visit Johannesburg, Pietermaritzburg and Durban during his visit.