Mozambique 21 April 17: Is Tanzania the tortoise to Mozambique’s hare?

Good afternoon. Mozambique’s northern neighbour is turning up the heat in the race to build the first LNG train in East Africa - or at least trying to. The project partners have submitted a draft agreement to the government outlining the potential legal and contractual framework for the development of the project , and made some aggressive comments about the need to overtake Mozambique - but it is still second-favourite by a long way, as Zitamar News explains today.

SEE: Tanzania ‘must beat’ Mozambique in LNG race, says energy minister

While gas remains a hope for the future, coal exports are bolstering Mozambique’s balance of payments in the here and now. Vale’s production continues to grow in leaps and bounds, as evidenced by their latest report, out yesterday.

SEE: Vale Mozambique sets new production record with 50% growth in Q1

Vale’s improved results are to some extent a ‘peace dividend’ that’s being felt across central Mozambique since Afonso Dhlakama called a truce at the end of last year. Discussions are continuing between him and President Nyusi about how to bring a definite end to hostilities - with Dhlakama saying “this is a moment of reconciliation”.

FREE TO READ: Renamo ready to make Mozambique peace permanent, Dhlakama says

The much-anticipated rise in ‘chapa’ fares in Maputo - widely seen as a potential trigger for social unrest - has been delayed after haggling between the government and the association of chapa operators. The government has taken away their subsidy, however, so price rises are still certain to happen soon.

SEE: Mozambique government cuts public transport subsidy but wins fare rise delay

Rural Mozambique has different issues to address, with more than 50% of people still without access to a toilet - something the government wants to eliminate by 2025. To that end, it is seeking a consultant to put together a national strategy for rural sanitation, to be implemented at community level.

SEE: Mozambique seeks consultants for national strategy on open defecation

Have a great week.
 

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