China’s Government is donating US$16 million to Mozambique to help fund a number of infrastructure projects, including the acquisition of 80 buses for urban public transport, Mozambican newspaper Notícias reported.

It is said to be part of a technical and economic co-operation agreement that the two countries sealed on Wednesday. Mozambique’s Vice-Minister of Foreign Affairs and Cooperation, Nyeleti Brooke Mondlane, and China’s Ambassador to the African nation Su Jian signed the agreement on behalf of the two governments.

In addition to the acquisition of buses, the deal includes funding for completion of the China-Mozambique Cultural Centre and the drilling of 200 wells to supply drinking water.

“We want to increase [our] support to Mozambique, in order to help the country overcome this negative moment,” Mr Su said, as quoted by Portuguese news agency Lusa. He was referring to a downturn in the African nation’s economy. Mr Su added China was aiming to invest in the industrialisation of the Mozambican economy, as discussed by the leaders of the two countries last December, on the sidelines of the Forum on China-Africa Cooperation, held in South Africa.