Mozambique, India to work for making Indian Ocean ’safe’ again

NEW DELHI - India and Mozambique Thursday pledged to work together to combat piracy and terrorism in the Indian Ocean and to make the region safe and peaceful. Both countries also hope to ramp up bilateral trade to $1 billion by 2013.

“Indian Ocean is no more a safe ocean and we are on the shores of this great ocean,” visiting Mozambique President Armando Emilio Guebuza said at a joint press conference with Prime Minister Manmohan Singh at the end of delegation level talks between the two sides.

Manmohan Singh too said they shared “common concerns” as members of the Indian Ocean community. “It is in our mutual interest to ensure the safety and security of sea lanes of communication in the Indian Ocean,” he said.

Guebuza said: “We are ready to do our part against piracy and terrorism,” adding they want to “share and learn” from India. He said this will be necessary to “make our ocean peaceful and safe”.

The joint statement released after the discussions said that both sides will also work together to “revitalize” the Indian Ocean Rim Association for Regional Cooperation (IOR-ARC).

Guebuza arrived in India Wednesday on a five-day state visit, his first trip to a foreign country outside Africa after his re-election in 2009.

After delegation level talks Thursday, the visiting leader of the southeast African country said the talks were “excellent and successful”.

“The challenge is to make sure, on our side, to implement fully (these decisions). But based on the discussions today, we may be able to go beyond,” Guebuza said.

Three agreements were signed by both countries - on avoiding double taxation, on mineral resources and on micro, small and medium enterprises.

Manmohan Singh said both nations have decided to set a target of increasing bilateral trade to $1 billion by 2013. Bilateral trade has doubled in the last five years to $427 million in 2009-10.

Concentrating on economic ties, Guebuza said he hoped to “communicate our invitation to do more” to Indian companies and to ask them to invest in Mozambique.

India is the fourth largest investor in Mozambique, with investments of $64.17 million, but both leaders called for greater investment promotion efforts to encourage Indian FDI in Mozambique.

Besides its vast reserves of coal, the president also highlighted expansion of electricity in rural areas as an area of investment.

Manmohan Singh said both countries will create partnership based on four pillars - “greater political engagement, deepening economic cooperation, strengthening defence and security cooperation and cooperation in capacity building and human resource development”.

India has also offered a line of credit of $500 million for infrastructure projects, agriculture and energy. “India will support the establishment of training and planning institutions in Mozambique to support capacity building in the coal industry. India will also support capacity building for the defence and police forces of Mozambique,” said Singh.

Guebuza will be visiting the Indian Agricultural Research Institute (IARI) here to learn about Indian advanced research in agriculture. He will visit Ahmedabad and Mumbai, before leaving for home Monday morning.