Bank of Mozambique hikes rates 200bp; New “eVisa” system to start this month

Welcome to Zitamar’s daily Mozambique briefing for 3 October 2022

Agenda:

• Tomorrow: Day of Peace and National Reconciliation commemorating signing in Rome of the General Peace Accord to end the Mozambican civil war in 1992. No Zitamar Daily Briefing will be published

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From the Zitamar Live Blog:

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Bank of Mozambique hikes rates 200bp
The Bank of Mozambique's monetary policy committee (CPMO) hiked its policy rate by 200bp on Friday, surprising observers by going from 15.25% to 17.25%
Standard Bank said earlier on Friday that it expected the central bank to hold rates through to next year; its "bear case" was for a 100bp rise in November.
The full CPMO decision is attached in our Telegram channel.

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The latest from Cabo Delgado:

2 October 22: Nguida, Macomia
Nguida village in Macomia district was attacked by insurgents on 2 October. At least three homes were burned. The population fled the village and the military were dispatched to the scene. No deaths have been reported so far. 
Source: Cabo Ligado intelligence

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Also in the news:

• Mozambique and Tanzania to share classified information (O País, The Citizen)

• Budget for local elections to be agreed soon (Rádio Moçambique)

• Kidnapped businessman freed after ransom paid (Canalmoz)

• Leaking of bank balances helping kidnapping, say legislators (Rádio Moçambique)

• Long delays at South African border, as government looks for improvements (Notícias, Rádio Moçambique, Notícias)

• New “eVisa” system to start this month (Domingo, AIM)

• Solar is fastest growing energy source in Mozambique (Lusa)