Mozambique 12 Feb: Life is what happens while you're making other plans

Good afternoon. Mozambique’s political crisis is worsening, with cars on the EN1 highway being fired upon yesterday, apparently by Renamo - though the opposition movement has not rushed to claim responsibility. More shootings on the road have been reported today.

SEE: Renamo accused of attacking cars on Mozambique highway

The incident recalls attacks on the same stretch of highway, between Muxungue and the River Save, that happened in 2013-14. Anyone who has travelled along that road since then will have seen the burned out carcasses of vehicles that remain. Though yesterday’s incidents were less serious, the situation overall seems grave.

Next week, the Bank of Mozambique’s monetary policy committee will meet to decide how to react to inflation which was more than 11% in the year to 31 January, new figures show. The national statistics agency put its figures out on Tuesday - the same day as Nyusi’s Council of Ministers tried to convince journalists that 2015 inflation was only 3.55%. Zitamar News did not fall for it.

SEE: Mozambique inflation keeps rising despite government claims

Today, we analyse what the low global oil price might do for Mozambique’s ‘Master Plan’ to use Rovuma Basin gas to kick-start the country’s industrialisation. While fertiliser and other projects should still be viable, market conditions mean one key pillar of the plan now makes less sense.

SEE: Low oil prices cast doubt on Mozambique’s Gas Master Plan

Have a great weekend.