Mozambique 15 June: Mcel, sell, sell
Good afternoon. Another military convoy started operating this week on the EN7 road running between Chimoio and Tete, following attacks on Malawian lorries and tankers which were left burning beside the road.
The Malawians are already looking for other options, however. Despite Mozambique providing by far the nearest access to the sea, they are looking at routes through Tanzania, Zambia, and Zimbabwe instead. .
SEE: Malawi plans to import fuel via Harare to avoid Mozambique attacks
The IMF mission to Mozambique is due to arrive in Maputo today to start work on Thursday, 16 June, as Zitamar reported last month. They find Adriano Maleiane still in post as finance minister - contrary to some reports that emerged at the end of last week, and despite the IMF having made clear after his visit to Washington DC in April that the institution had lost confidence in him.
The information Maleiane is providing to parliament and the Mozambican public is still incomplete and conflicts with other sources. According to bank documents seen by Reuters, for instance, the interest rate on the Mozambique Asset Management loan is 100 basis points higher than what Maleiane claimed.
Whoever is right on that detail, it’s no wonder the state-owned company is unable to repay its debts if it is unable to install its shipyard, as Zitamar reported yesterday.
SEE: Mozambique’s defaulting shipbuilder denied access to Maputo shipyard site
The financial crisis is putting state-owned companies under pressure - although Mcel was in a sorry state even before the crisis broke. Along with ports and rail company CFM, and Aeroportos de Moçambique, it too is putting assets up for sale.
SEE: Mozambique mobile telco exploring transmission towers sale
Although donors have frozen much of the aid they used to channel through the government, they are still providing emergency food aid to those suffering the effects of the drought in central and southern Mozambique. Nevertheless, there is a funding gap of $180 million, as more than 1.5 million are now hungry.
SEE: Mozambique drought: hunger to worsen over coming months, says UN
Have a good week. See you again on Friday.
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