Mozambique 15 Feb 2017: Shelter from the storm
Good afternoon. Coastal areas of southern Mozambique are preparing for the arrival of tropical cyclone Dineo which, according to forecasts, could be the most severe to hit the area in a decade. The latest predictions are for Maputo to avoid the worst of the winds, with the storm making landfall later today in Inhambane province and heading inland towards Zimbabwe, according to the UK Met Office’s prediction:Natural disasters are one ingredient of the economic crisis that has assailed Mozambique over the last year and have led to the Bank of Mozambique raising its lending rate above 20% to try to keep a lid on inflation. Recent statistics allowed the Bank to avoid another rate rise at Monday’s meeting, but it did announce a couple of new measures.
SEE: Bank of Mozambique rescinds capital control measure, announces new policy tool
The ‘no change’ on interest rates was unanimously predicted by economists who spoke to Zitamar News in the run-up to the decision, but they did differ on the likely path of the metical throughout 2017. Mozambique’s currency has strengthened over recent weeks, but is it sustainable?
SEE: Bank of Mozambique seen holding rates while opinions differ on metical performance
Part of that answer will depend on whether the Mozambique government can repair relations with donors and the IMF - and before that can happen, Kroll needs to publish its report into the $2 billion government-guaranteed debts for ProIndicus, EMATUM, and MAM. We will now have to wait an extra month for that, it was announced this week.
SEE: Kroll granted one-month extension for Mozambique $2 billion debt audit
The award of some domestic gas allocation to a 250 MW power project in Nacala continues to raise more questions than answers - including why the national power company was not consulted over the award.
SEE: EDM left out of the loop in Mozambique domestic gas project tender
And finally, Indian coal mining consortium has re-launched a tender for a mining contractor to restart operations at its concession in Tete - suggesting the original tender launched last year failed to attract acceptable bids.
SEE: Indian consortium re-tenders for mining contractor in Tete
Have a great, and safe, week.