The Export-Import Bank of Korea announced on July 13 that it signed an EDCF* Loan Agreement to provide USD 18.1 million in financial support for a project to improve the quality of vocational training in Mozambique.

Executive Director Sang-wan Byun of Korea Eximbank and Finance Minister Manuel Chang of Mozambique signed the agreement in Maputo, the capital of Mozambique, in the presence of Korean Prime Minister Hwang Sik Kim and Mozambique Prime Minister Aires Ali.

* EDCF is a concessional ODA(Official Development Assistance) loan for developing countries offering long-term and low-interest rate to support industrial development and economic stabilization. EDCF was established by the Korean government in 1987 to increase cooperation with developing countries. EDCF has supported 275 projects in 49 countries, with cumulative loan commitment of KRW 8.0587 trillion as of April 2012.

The project to improve vocational training has been prioritized by the government of Mozambique as there has been increasing demand for skilled HR in the country’s growing industries. As part of the project, vocational centers in Nampula, Lichinga, and Mocuba will be newly built or renovated and training materials will be provided.

New and improved vocational training as a result of the project is anticipated to reduce the country’s unemployment rates and contribute to the development of its manufacturing sector.

Executive Director Sang-wan Byun commented, “Mozambique is developing at an annual rate of over 6% thanks to the country’s vast natural resources* and stable political environment. This loan agreement is anticipated to further strengthen economic cooperation between Mozambique and Korea.”

* Mozambique’s natural resource deposit estimates: 2.5 billion tons of coal, 1.7 billion tons of titanium, 1.17 billion tons of natural gas

To date, Korea Eximbank has provided a total of USD 192.2 million in EDCF support to Mozambique, making the country the third largest EDCF partner country after Tanzania and Angola.