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imageWASHINGTON: US Secretary of State John Kerry congratulated Mozambique Friday for signing a peace deal, saying it was a "historic step forward" after a two-year conflict.

"This agreement underscores the power of negotiation and the possibilities for peace when a political leadership is committed to dialogue," Kerry said in a statement.

He praised President Armando Guebuza and Mozambican rebel Renamo leader Afonso Dhlakama, who had come out of hiding to sign the deal, for showing "statesmanship."

"Free, fair, and transparent national elections in October are a critical next step, which will help pave the way for a brighter, democratic future for Mozambique," Kerry added.

"The people of Mozambique demand and deserve a more peaceful, prosperous, and secure future," the top US diplomat said, stressing that the United States "stands in partnership with Mozambique as it continues on its remarkable journey."

For two years government forces and fighters loyal to Dhlakama have clashed, with the rebel leader accusing the state of reneging on a peace deal that ended Mozambique's brutal civil war.

Around one million died as a result of the earlier 15-year conflict, which ended in 1992.

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