Mozambique 20 May 2016: The Presource Curse
Good afternoon. Our news remains dominated this week by the fall-out from the discovery of the ProIndicus and MAM loans in April. Following promises of transparency from the government, information continues to trickle out about the conditions under which it was borrowed – and quite what it was borrowed for.
Finance minister Adriano Maleiane shed some more light on the issue at a parliamentary hearing on Wednesday. Among the highlights, he detailed the way in which the companies paid their suppliers – and said the French-built fishing boats don’t meet requirements to import tuna to the EU.
SEE: EMATUM boats unfit to sell tuna to EU, Mozambique finance minister admits
The boat manufacturer, Abu Dhabi Mar, insists that the boats “were made fully in accordance with the requested specification, with appropriate and complete Bureau Veritas and other classifications confirming compliance with French (and therefore European) regulations.” This story still has a way to run.
At the same hearing, Maleiane talked about the repayment schedules for the three debts – EMATUM, ProIndicus, and MAM. MAM is due to make its first payment of $134m this Monday coming – and has yet to make any revenue. But the government has confirmed it will step in if necessary and make the payment.
SEE: Mozambique will make MAM repayment on 23 May, government confirms
An IMF visit next month will continue trying to unravel what happened and work out exactly how bad the damage is.
SEE: IMF sets dates for Mozambique visit next month
But in the final analysis, the loans are a disaster for Mozambique. The tragedy is that in Mozambique, a bad case of the resource curse has hit even before the country has started profiting from its natural resources. As Zitamar energy editor Leigh Elston argues today in Interfax Global Energy, Mozambique has become a textbook example of a newly-coined term: The Presource Curse.
FREE TO READ: Mozambique and the Presource Curse
A co-ordinated response from the political opposition and civil society looks further away than ever today after Joao Massango, the leading proponent of a planned march in Maputo this weekend, was attacked today just outside the capital. He avoided being kidnapped by armed men and is now recuperating in hospital – but has lost his appetite to lead the march, he told Zitamar.
SEE: Protest organiser escapes kidnap attempt in Maputo
Elsewhere on the political scene, however, progress is being made. Having promised on Tuesday to appoint his preliminary negotiating team, Renamo leader Afonso Dhlakama yesterday followed through and named three men to open talks with the government. Read about them here, for free:
FREE TO READ: Mozambique opposition picks team to prepare Dhlakama-Nyusi talks
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Have a great weekend.
RECENT POSTS
Mozambique opposition picks team to prepare Dhlakama-Nyusi talks
Mozambique will make MAM repayment on 23 May, government confirms
EMATUM boats unfit to sell tuna to EU, Mozambique finance minister admits
