Bank of Mozambique tightens monetary policy

And: How important is Mozambique to international power-brokers

Good afternoon. The United States’ Ambassador to the United Nations is visiting Mozambique this week part of a trip that also takes in Kenya and Ghana. The visit ostensibly has an emphasis on climate change, and also to “welcome Mozambique to a historic first term on the Security Council.”

Mozambique’s election to the Security Council certainly increases the country’s heft diplomatically — and Ambassador Thomas-Greenfield will probably be lobbying Mozambique to change its neutral stance on the Russian invasion of Ukraine. But what is also notable this week are the international powerbrokers who are not visiting Mozambique.

Russia’s foreign minister, Sergei Lavrov, is in the region, having touched down in South Africa on Monday. He has visited Eswatini, and will reportedly go to Angola too. But Mozambique is apparently not on his itinerary.

Nor will US Treasury Secretary Janet Yellen visit Mozambique on her tour of African countries aimed at strengthening business ties, that is taking in Senegal, Zambia, and again South Africa. In Zambia, she coincided with IMF head Kristalina Georgieva, there to try and help Zambia renegotiate debts to China.

An IMF chief has not visited Mozambique since Georgieva’s predecessor, Christine Lagarde, came to Maputo in 2014 for a conference called ‘Africa Rising’, in those heady days before the ‘hidden debts’ scandal had come to light. Almost a decade on now from those loans being taken out, they are still being litigated; as we write this leader, a hearing is ongoing in the UK Supreme Court over the alleged bribes and fraud involved. Manuel Chang, the finance minister at the time, is in jail in South Africa, waiting for extradition to the US or to Mozambique. Mozambique’s status as poster-child for Africa’s development did not last long.

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Agenda:

• Today: Greece's foreign minister Nikos Dendias to visit Maputo 

• Today-Tomorrow: President Nyusi to visit Senegal, to meet President Macky Sall and attend the Dakar Summit on Agriculture and Agribusiness

• Tomorrow-Friday: US Ambassador to the United Nations Linda Thomas-Greenfield Visits Mozambique

  • A statement said: "While in Mozambique, Ambassador Thomas-Greenfield will highlight our strong partnership and welcome Mozambique to a historic first term on the UN Security Council. The Ambassador will also meet with UN officials, alumni of U.S. exchange programs, students, and members of civil society, including those engaged in climate change adaptation measures in Mozambique"

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The latest from Zitamar News:

Cabo Ligado Weekly: 16 -22 January 2023

• Heavy rains inhibit movements of insurgents and security forces

• Local Forces collaborate with Rwandans on operations

• One civilian shot dead by drunk Mozambican soldiers in Mocímboa da Praia, source claims

Report also available in Portuguese

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From the Zitamar Live Blog:

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The Bank of Mozambique's Monetary Policy Committee today decided to hold its policy interest rate, known as MIMO, at 17.25%
However, it dramatically increased reserve obligations, from 10.5% to 28% on metical deposits, and from 11.5% to 28.5% on foreign currency deposits — with the aim of absorbing excessive liquidity in the banking system, which is creating inflationary pressure, the Committee said.

The UK Supreme Court should today wrap up a two-day hearing into whether UK courts can hear a claim by Mozambique against Lebanese shipbuilding group Privinvest. Privinvest claims that a hearing in London would prejudice arbitration in Switzerland.
More background to the hearing can be found here: Mozambique goes to UK’s Supreme Court over 'hidden debts' shipbuilder
The hearing is being broadcast live, here: https://www.supremecourt.uk/live/court-02.html

Tropical storm Cheneso has evolved into a severe tropical storm in the Mozambique Channel and could become a tropical cyclone in the coming hours, Mozambique's meteorological institute INAM warned this morning

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💥 Conflict updates:

24 January 2023: Nacala, Mueda district, Cabo Delgado
Insurgents entered the village of Nacala in Mueda district on Tuesday afternoon. Most civilians were warned of their arrival and managed to flee in advance. It is believed the insurgents clashed with Local Forces but no casualties have been confirmed so far.

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Also in the news:

• Government approves but does not reveal new pay levels for FADM and PRM

• Heavy rains kill two children in Palma district

• Police officer killed by illegal miners in Nampula

• Mozambican tour bus torched in South African protest

• Coral South LNG cargo arrives in Croatia