Mozambique 1 April: Vale stands by Mitsui pre-nup, and Pemba bust-up is settled out of court
Good afternoon. Brazilian miner Vale, probably the biggest single private investor in Mozambique, has been forced to deny suggestions in the Brazilian press that Mitsui, its intended partner in its coal and logistics projects, is having second thoughts about getting involved.
In our analysis, Mitsui is too heavily invested in Vale to leave the Brazilian miner to its fate in Mozambique - and Vale is too heavily invested in Mozambique to walk away from the country, though it may well regret having got involved in the first place.
MORE HERE: Vale says Mitsui won’t walk away from Mozambique coal deal
As part of our shift to a subscription model, we are now providing more analysis for readers who pay for access to the website. The Zitamar View section will become a regular feature in our articles, along with stand-alone analysis and opinion pieces.
The South African construction firm originally contracted to build the Pemba Logistics Base says it has renewed faith in the rule of law in Mozambique after an out of court settlement awarded it compensation in cash and shares in the project. The third element of the award might raise eyebrows however.
FOR MORE, SEE: Mozambique reaches deal with snubbed Pemba contractor – Interfax
Another out of court settlement this week sees Portuguese construction firms Mota Engil and Soares da Costa paying compensation to the victims of the Zimpeto swimming wall collapse. According to AIM, the companies “have not formally accepted responsibility for the collapse, but by offering full compensation, they are avoiding a likely court case.”
Across Mozambique, the effects of the drought, flooding, and political insecurity are making themselves felt in the price of staple foods. Maize prices have doubled in most of the country’s major cities, meaning the real inflation rate facing most of Mozambique’s population is far higher than the 12% being reported by the National Institute of Statistics.
FOR MORE: Maize prices double across Mozambique as food crisis grows
On Monday, Zitamar highlighted how Mozambique is seeking to expand its role exporting power to the region. Since then, we have reported on a proposal to build a fuel pipeline through Mozambique to supply the hinterland countries of Malawi, Zambia, and the Democratic Republic of Congo. It’s being promoted by a company with no experience building major cross-border pipelines, but the idea has merit.
MORE DETAILS: Mystery firm promotes Moz-Malawi-Zambia-Congo pipeline project
Finally, a reminder that there are just four days left to take advantage of our special offer of £500 for a year’s subscription to Zitamar News. The paywall will go up on Tuesday, 5 April.
Have a great weekend.