Mozambique 12 Feb 2017: Long-term optimism (with a little Dutch courage)
Hello. The second half of last week brought a variety of stories of foreign investment, with varying degrees of success - but all exhibiting optimism about Mozambique’s long-term prospects.
One of the country’s biggest natural assets is its geographical position, forming the natural route to the sea for countries of Mozambique’s ‘hinterland’ and even South Africa, if the logistics were in place. On Friday, the new head of Mozambique’s ports and railways announced plans for a PPP to make efficiency gains in the Maputo corridor, and a joint venture with its opposite number in South Africa, Transnet.
SEE: Mozambique rail company considering PPP and Transnet JV for Maputo rail corridor
Another great Mozambican asset are the gas fields in the Rovuma Basin, which are expected to transform the economy. There have so far been two proposals to build a pipeline to take that gas from the country’s far north to South Africa, via north and central Mozambique and also with spurs off to the hinterland countries. One of the proposals missed out in Mozambique’s domestic gas project tender, though the Mozambican authorities insist a pipeline remains part of its plan.
SEE: Mozambique still discussing north-south gas pipeline projects, regulator says
2016 was a difficult year for anyone trying to do business in central Mozambique, including the Portuguese company trying to set up extensive eucalyptus plantations in Zambezia and Manica. As a result it has had to write down the value of its investments in Mozambique yet further - and will be hoping the current truce holds throughout 2017.
SEE: Mozambique ‘instability’ hinders Portuguese-owned plantation progress
Dutch brewer Heineken is also taking a bet on better times ahead for Mozambique, and is preparing to start work building a brewery in southern Mozambique, Zitamar News revealed on Friday.
SEE: Heineken plans brewery in southern Mozambique
And finally, a number of international players is interested in buying Moza Banco - including Atlas Mara which has been trying to do so for around two years, and has apparently not been put off by Mozambique’s series of disasters over that period.
SEE: Atlas Mara and others prepare bids for Mozambique’s Moza Banco
Have a great week.