Mozambique 20 Jan 2017: Cutting through confusion
Good afternoon. Mozambique has defaulted on its sovereign bond, and the world has not ended - but analysts are warning that the real trouble could start when the next payment comes around in March. Handily, that’s when the IMF is hoping to reopen its taps. Read our analysis here:
SEE: Mozambique must restructure debt by March deadline to avoid banking ‘chaos’
The IMF’s office in Maputo had to deny erroneous reports this week that one of its staff, Sean Nolan, said in a press briefing that there were more hidden debts in Mozambique. Unfortunately for them, their denial has now been mis-reported further: first AIM said the IMF “denies the existence of more ‘hidden debts’” - it didn’t - and today the website of the ruling Frelimo party got it even more wrong, saying the IMF “denied the allegations by Sean Nolan” - when in fact he made no allegations. Confusion reigns.
A panel of experts hopes to cut through some of this confusion next Wednesday on a Zitamar News webinar on Mozambique’s debt crisis, to be broadcast live online. The webinar features a distinguished panel of economists, investors, and political analysts, and will start at 15:00 Mozambique time. You will receive another email on Monday with more details, but for now:
SAVE THE DATE: Webinar on Mozambique’s debt crisis, Wednesday 25 January 2017, 15:00
The Sena railway line between Tete and the port of Beira suffered another derailment this week following the incident last Saturday. Until the truce between government and Renamo was announced at the start of this month, trains had been being shot at by the rebels; there must be a suspicion now that they have traded bullets for more subtle means of disruption. The derailments remain officially unexplained.
SEE: Another derailment on Mozambique’s Sena rail line
The roads, at least, seem safer, and people in central Mozambique are starting to travel again. Inevitably, though, parts of the transport industry have retreated for good, while others are waiting to see if the ceasefire holds.
SEE: Bus operators restart services in central Mozambique, but remain wary
While we continue to wait for the results of the domestic gas projects tender, the national mining regulator has begun the process of relicensing the phosphate deposit in Nampula. It should interest whoever is awarded the right to build a fertilizer plant - but that decision is still pending.
SEE: Mozambique invites proposals for Nampula phosphate mining concession
Another project to use Mozambique’s existing gas allocation from Sasol’s operation in Inhambane is apparently moving ahead, though, with public consultations set to start on a power plant planned for Gaza province.
SEE: Planned 78 MW Mozambique gas-fired power project enters consultation
Have a great weekend.
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