Don't sugar-coat it

Sugar is an important export commodity for Mozambique, but figures show an industry in decline

In today’s Daily:

• Nacala soybean fight latest

• Journalist freed but faces charges

• Power cuts on their way

• Renamo demobilisation continues

• Eswatini talks over water

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Good afternoon. The governor of the Bank of Mozambique, Rogerio Zandamela, today called for a ‘master plan’ for Mozambique’s sugar industry to “maximise the gains” from this important sector.

But the situation in the industry seems dire. As Zandamela himself pointed out, employment in sugar has halved over the last decade, and revenues have fallen by almost three quarters. In Sofala, where the central bank’s meeting is taking place, one major sugar mill has been sold off for pennies, and Tongaat Hulett’s Mafambisse is struggling.

In Maputo province, Tongaat Hulett is still negotiating with workers and the local community who want to see more benefits from the Xinavane sugar mill and refinery; but the South African company is in deep trouble at home and has been looking to sell off its non-South African assets.

A final note on a story we’ve been following all week: although the judge in Nampula yesterday lifted the injunction impounding the assets of ETG, a court in Nacala has today refused to execute that order, on the grounds that the head of Royal Group, the rival company which was made guardian of ETG’s assets, is absent.

But even as the judge was writing his order to lift the injunction, the Nampula provincial authorities summoned ETG representatives to urge them to reach an out of court agreement with Royal Group — a demonstration of the sway which Royal Group head Hassnein Mamadataki apparently holds with the government and Frelimo.

The saga continues.

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Agenda:

• Today: Final day of Bank of Mozambique’s annual Consultative Council, this year taking place in Beira

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The latest from Zitamar News:

Detained journalist Arlindo Chissale to be released but still faces charges
Arlindo Chissale, the editor of Pinnacle News who was detained last Friday on terrorism charges in Cabo Delgado, will be released but faces lesser charges over his claim to be a journalist

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From the Zitamar Live Blog:

Power cuts on their way
Many parts of Mozambique will suffer power cuts over the coming days as electricity company EDM carries out planned maintenance of the electricity network

Renamo demobilisation continues
Two more Renamo bases have closed, in Zambezia province, bringing the total number of demobilised to approximately 90% of the total number due to benefit from the DDR programme

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Also in the news:

• Sofala sugar exports worth $91m in the last decade (Notícias)

• Maputo governor calls for dialogue between Xinavane sugar mill and workers (Notícias)

• CNE admits it may have to postpone voter registration (O País)

• Mozambique and Eswatini study water sharing methods (Notícias)

Today’s front pages in Maputo. Photo © Faizal Chauque / Zitamar News