The EU is grappling with dwindling fish stocks in its own waters and has now bought fishing rights from 15 African countries. Conservationists say the deals will deplete fish stocks vital to poor African coastal communities.
The EU defends the agreements, saying they will promote sustainable fishing in the region.
Under the agreement with Mozambique, 59 EU vessels will be allowed to fish beyond a 12 mile (19 km) coastal band as long as they ensure that half their crew is local fishermen, the executive European Commission said in a statement.
In return the EU will pay Mozambique 4.09 million euros ($3.09 million) over three years starting on January 1, 2003. This funding would help Mozambique's fisheries management, surveillance and scientific research, the statement said.
The agreement allows 10 fishing vessels from Spain, Portugal, France, Italy and Greece to catch up to 1,000 tonnes of deep-water shrimp a year. Forty nine EU vessels may fish for tuna with no limit on the catch.
Conservation group WWF International criticised the EU's fishing deals earlier this month citing concerns about depleted fish stocks, weak enforcement of catch limits and the fairness of the price.