Mozambique 15 March: More questions than answers at Zimpeto

Good afternoon. The recent rush of announcements in Mozambique’s coal-to-power sector continues this week with the news that Jindal is tendering for a project manager to direct the construction of a 150 MW plant next to the Indian firm’s coal mine in Tete.

SEE: Jindal seeks project manager for scaled-down Mozambique power plant

The project is smaller than Jindal had originally planned but that might at least improve its chances of getting it done. All of the Tete coal-fired power projects have been seriously downgraded from their original ambitions of providing multiple gigawatts of power to the grid - not for a lack of coal, but for lack of a credit-worthy buyer for all that power. Most of them are still waiting for a firm commitment from EDM to buy even their smaller capacity. But with neighbouring Zambia and Zimbabwe increasingly desperate for new energy, some of them might yet happen.

The man who was Mozambique’s energy minister throughout the coal rush years, Salvador Namburete, has reappeared at the helm of a new player in Mozambique’s banking market. The bank in question was formed in Portugal in 1999 but has yet to open a foreign subsidiary. That will change later this month when it opens in Mozambique.

SEE: Former energy minister to lead new Portuguese bank in Mozambique

Those left bereaved by the tragic Zimpeto Olympic swimming pool wall collapse are no closer to finding out who was responsible for the incident. The government has pointed the finger at the constructors and the inspection company, but has yet to make its report public. Meanwhile, the company named in the press as having conducted the inspection has denied it was responsible for checking the wall was properly constructed.

SEE: Consultancy denies blame for fatal swimming pool wall collapse

On Monday evening, the Bank of Mozambique revealed it will keep interest rates at the same level for the coming month, despite inflation continuing to rise. The central bank’s statement also revealed that reserves of foreign exchange fell by $32 million to $1,831 million.

Next month’s figures can be expected to show a more serious drop, given last Friday’s $110 million EMATUM repayment - highlighting the dire need for finance minister Adriano Maleiane to come up with a solution acceptable to creditors that allows Mozambique some breathing space. Details on the offer should come out this Thursday.

Have a great week.

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