Chinese Banking Interests in Mozambique
Unlike in most other African countries, Chinese financial involvement in Mozambique includes state-owned banks (Export–Import Bank of China – Exim Bank, and the China Development Bank – CDB) and private commercial interests, in the form of Geocapital, a Luso-Chinese fund.
This joint venture is structured around personal connections and a shared legacy rooted in Macau where it is based. Geocapital’s personal web connects Chinese money to key political and business figures in Mozambique. In much the same way, Chinese state-run banks in Mozambique rely on their political connections to expand their interests in the country. Despite having the necessary capital, enjoying strong links with the local political elite and the growing attractiveness of this economy, both Chinese state-run banks and Geocapital have so far struggled to attract Chinese capital to invest in Mozambique. This state of affairs is mostly due to poor strategic planning and co-ordination and a lack of institutional capacity on the Mozambican side.