Mozambique 21 Oct: Will interest rates rise now, or later?
Good afternoon. Today’s newsletter comes before the big news event of the day in Mozambique, as the new Governor of the Bank of Mozambique will announce his first monetary policy decision at 17:30 in Maputo. After the IMF called for further tightening at the end of its visit in September, the only question is whether rates will rise now or later.
The biggest news of the week, however, was the appointment on Monday of a new minister of energy and natural resources. The identity of the new minister has been met with concern given her ties to the former regime and lack of experience.
SEE: Nyusi appoints Guebuza ally to head Mozambique energy ministry
She has a bulging inbox to deal with, including the two major gas projects off the coast of Cabo Delgado that are still waiting to be finalised. We spoke to ENH head Omar Mitha today to get his view on the deals in the pipeline.
SEE: Eni ‘fine tuning’ deal to sell half Mozambique offshore stake to Exxon
Oil and gas regulator INP has also started the process of finding investors to build major projects within Mozambique that could use the gas once it comes online. Zitamar has seen the tender documents outlining the regulators plans.
SEE: Mozambique plans for domestic diesel production could be stymied by lack of gas
SEE: Mozambique eyes fertilizer production using Vale’s abandoned phosphate project
The coal sector in Mozambique is undergoing a revival thanks to a sharp upturn in the global price of the commodity - which is good timing for Vale which brought its new Moatize II project online this year.
SEE: Vale Mozambique hits new coal production records
As ever, greater coal production is constrained by export logistics, and violent sabotage in central and northern Mozambique has reached Vale’s Nacala line in recent weeks. The peace talks’ international mediators are back in town this week but have yet to convene the Joint Commission.
SEE: Analysts see light at the end of the tunnel in Mozambique’s peace talks
A definitive answer from the ruling Frelimo party on proposals for decentralisation, could be some way off given the lengthy decision-making process within the party. Some Frelimo grandees are today heading to the country’s provinces to continue discussions on what the party line should be on this, as well as other topics, ahead of the next round of national elections.
SEE: Mozambique ruling party figures take central message to the provinces
And finally - after the appointment of a new central bank governor, and this week a new energy minister, the Mozambique stock exchange needs a new leader after the incumbent was moved to head up the Office of the First Lady. There may be more pressing appointments for the President to make, however - for example, a deputy energy minister to reinforce that key department and restore industry confidence.
SEE: Mozambique stock exchange CEO steps down
Have a great weekend.
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