Mozambique 19 April 17: IMF needs to see reforms, not just the audit
Good afternoon. Mozambique feels in stasis while the country waits not only for the Kroll report but also what might follow - in particular a new programme with the IMF. Yesterday, however, came a reminder that that programme has a number of other prerequisites - and the government still has work to do if it is going to meet them.
SEE: IMF warns Mozambique’s continued borrowing threatens new programme talks
The IMF presentation implied that the government is taking advantage of the lack of a programme to borrow to spend on investment projects. To judge by a contract award announced today, at least one such project - the expansion of the EN6 highway from Beira to Zimbabwe - is moving ahead.
SEE: Consultant hired to help resettle 900 families for Mozambique highway expansion
Running parallel to that road is a rail line which is in an even worse state of repair, meaning it has lost most of its traffic to road transporters. Now, however, state rail company CFM is promising to repair the line.
SEE: Mozambique rail company promises improvements on Beira-Zimbabwe line
Mozambique’s Attorney General, Beatriz Buchili, gave her annual address to parliament today. Daily newspaper O País got hold of an advance copy of her report, publishing an article yesterday that a case is being brought against three suspects in the LAM-Embraer corruption case. We briefly unpublished our version of O País’ story yesterday having been persuaded - wrongly - that the story was erroneous; the article is now back on our site, having ascertained that O País’ scoop was indeed correct.
SEE: Three suspects in Mozambique airline bribery case – report
Finally, some good news for Mozambican food processing exports, with Portuguese fruit juice company Sumol+Compal starting to sell to South African supermarket chain Pick’n’Pay from its factory in Boane.
SEE: Mozambique fruit juice factory starts exports to South Africa’s Pick’n’Pay
Have a great rest of the week.