Mozambique 2 September: A big job for Zandamela
Good afternoon. The biggest news in Mozambique this week was the appointment of a new governor of the Bank of Mozambique. Rogério Zandamela returns to Mozambique after a 28-year career at the IMF - the very institution Mozambique needs to win around after relations soured over the hidden debts scandal.
FREE TO READ: Mozambique central bank governor replaced with IMF economist
SEE: New CB governor promises to restore Mozambique’s economic credibility
The outgoing resident representative made clear in an interview published by Savana today that the appointment of foreign experts to Mozambique’s internal investigations of the debts will not satisfy the Fund’s demand for an international, independent audit. That audit “must occur in parallel and as a complement to the work of the [state] prosecutor. That is the crucial difference,” Alex Segura-Ubiergo said.
The new central bank governor has his work cut out, not just to restore Mozambique’s international economic credibility but also to revive the moribund economy. As Zitamar reports today, new credit lines to encourage investment by SMEs will have little effect while uncertainty prevails over the direction of economic policy.
SEE: Little appetite for SME investment in Mozambique despite EIB funds
The slump in global commodity prices is one well-known source of Mozambique’s economic malaise, causing a number of the big investors in the country to scale down their operations. That in turn has led to a surplus in housing stock, Zitamar reported on Thursday.
SEE: Commodity investors turn landlords in Mozambique’s downturn
Activity is returning to Mozambique’s offshore gas sector, however, as we have been reporting over recent weeks. Today, Italy’s Eni launched a tender for on- and offshore logistics services for its project in the Rovuma Basin.
SEE: Eni launches Mozambique coastal logistics tender
The country manager for Norwegian forestry company Green Resources spoke with Zitamar this week, correcting reports that had said his company was close to opening a paper pulp facility. That is a long-term goal, he said - but not the company’s focus for now.
SEE: Green Resources says Mozambique pulp project a ‘long-term goal’
And finally, tragedy struck Mozambique’s media yesterday morning when a mini-bus carrying a group of journalists from Nampula to Nacala crashed due to a puncture, while the driver, who also died, was speeding. Three journalists were killed on the scene and others remain in hospital. The incident is a reminder, if any were needed, of how deadly Mozambique’s roads are - and the urgency with which the government must act.
Have a safe weekend.
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