The United States will provide Mozambique with 3,000 tons of crude vegetable oil, local media reported on Friday.

An agreement for the donation was signed here on Thursday by Mozambican Minister of Industry and Trade, Antonio Fernando and US Ambassador to Mozambique Helen La Lime.

The crude vegetable oil will be processed by local cooking oil producers. The total value of the oil, including transport from the United States, is estimated at 3.7 million US dollars.

The money generated by sales of the oil to local companies is to be used to expand Mozambican exports of labor-intensive products.

Specifically, 500,000 dollars of this money will be spent on increasing the capacity of the Mozambican Ministry of Industry and Trade to negotiate international trade agreements, and guarantee access of local produce to export markets.

A further 700,000 dollars should be used to make local companies more competitive, and to improve the business environment.

Finally, 452,000 dollars should finance scholarships in economics, trade and agriculture at institutions in Mozambique, South Africa and the United States.

Source: Xinhua