Mozambique 14 Oct: Hidden debts back in the spotlight
Good afternoon. Mozambique’s ‘hidden debts’ are back in the spotlight this week with the start of the parliamentary inquiry into the government guaranteed borrowing by ProIndicus, EMATUM, and MAM. At the same time, a warning has come from one of the main lenders that Mozambique may not be able to keep up repayments even after restructuring the EMATUM bonds.
SEE: Mozambique debt inquiry underway as VTB warns of default
A series of planned protests earlier in the year over the debt scandal and resulting financial crisis fell a long way short of their organisers’ expectations. But as regular Mozambicans increasingly feel the impact of the crisis in their pockets, the risk of social unrest is rising- leading the authorities to avoid publicising a water rates hike this month.
SEE: Mozambique quietly raises water prices to help pay government debts
The government also wants to raise money through implementing tolling across the country’s highway network. A new tender out this week seeks to hand over the network’s operation and maintenance to private players.
SEE: Mozambique launches nationwide toll roads tender
A longer-term solution to the Mozambique’s economic and financial crisis could come through developing domestic downstream projects to use the gas produced in the Rovuma Basin mega-projects. The industry regulator has set itself a tight deadline to select winning proposals - but it remains unclear that there will be enough gas to realise them any time soon.
SEE: Mozambique to select ‘gas master plan’ projects this year
Shots rang out in Maputo’s Sommerschield district today when a man described as an ‘eminent businessman’ was victim of a drive-by shooting just outside the US Embassy. The police have yet to make an official statement on the crime, which has left the victim fighting for his life.
SEE: “Eminent businessman” shot in central Maputo
Have a safe weekend.