Mozambique 18 Nov: Tragedy in Tete

Good afternoon. Mozambique will tonight start three days of national mourning after a tragic accident in Tete killed at least 56 people and left over 100 more injured.

SEE: Mozambique decrees three days of mourning after tanker explosion kills 56

Observers keep wondering if and when the Mozambican people will take to the streets to protest against the ever-rising cost of living. Events like Thursday’s, which can be linked to economic desperation and rising fuel prices, are the kind that could trigger protests. Eager to show that the government cares, Nyusi has sent half a dozen ministers to Tete.

Unrest is also brewing in Maputo, over the failure of Nosso Banco. Individual depositors have just 20,000 meticais worth of insurance under the deposit guarantee fund, while businesses and deposits in foreign currency receive nothing. Due to the volume of press inquiries it received, the Bank of Mozambique called a press conference this morning to provide further clarifications - then postponed it for this afternoon. It was ongoing as this newsletter was being written.

Although Nosso Banco was a tiny player, there is a widespread expectation that more bank failures will follow - something that is causing consternation given the lack of a meaningful deposit guarantee. Zitamar’s article this week points out some of the warning signs for which banks might be in danger.

SEE: Bank failures offer clues for things to come in Mozambique’s banking sector

Italian oil and gas company Eni has given its final approval for the Coral South floating LNG project in the Rovuma Basin -  another step along the road to a Final Investment Decision.

SEE: Eni gives green light for $9 billion LNG project in Mozambique

Construction has begun on a new gas-fired power plant in Maputo, despite the financial woes of EDM. The Maputo plant, like the one in Mocuba which should start construction next year, is going ahead thanks to foreign donor financing.

SEE: Mozambique starts work on Maputo gas-fired power plant project

And finally, Maputo Port can now offer bunkering, or refuelling, services to ships using its port, thanks to a joint venture between troubled state-owned Petromoc and an international oil trading firm based in Geneva.

SEE: Petromoc JV with international oil trader brings bunkering to Maputo port

This weekend, we join Mozambique in mourning the victims of the Caphiridzange tragedy.
 

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• Petromoc JV with international oil trader brings bunkering to Maputo port

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• Eni gives green light for $9 billion LNG project in Mozambique

• Mozambique decrees three days of mourning after tanker explosion kills 56

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