Mozambique 22 March: Eni’s tax bill
Good morning. It seems too soon to celebrate the Mozambique tax authority’s announcement that Eni will pay $350 million tax on the deal that brings ExxonMobil into the Rovuma Basin. On the one hand, the figure is at the top of the range we expected - but at the same time, the route taken to arrive at that figure seems, on the face of it, rather baffling. We expect to have more details for our readers as the week goes on.
SEE: Mozambique to charge $350 million capital gains tax on Eni-Exxon deal
SEE: Eni-Exxon CGT bill ‘not automatic,’ says Mozambique tax authority
As Zitamar previously reported, the tax will not land in Mozambique’s state coffers for at least another six months, meaning the country remains insolvent vis-a-vis its external creditors. Yesterday was another landmark in the debt default saga, as ProIndicus missed a $119.4 million repayment. Restructuring talks should start next month, after Kroll finishes its audit and the Finance Ministry’s advisors come up with a plan.
FREE TO READ: Mozambique to default again on ‘hidden debt’ payment due today
Fuel prices have risen in Mozambique today, a move that was only announced yesterday evening - presumably to avoid big queues at petrol stations during the afternoon commute. The measure is vital to ensure the sustainability of state fuel company Petromoc, one of the sickliest of Mozambique’s state owned companies.
Another one is Aeroportos de Moçambique, whose parlous balance sheet is not stopping it making ambitious plans. Another week has brought another tender for a ‘master plan’ to make its airports into profitable businesses.
SEE: PPP tender launched for Mozambique airports development
And finally this week, the truce in central Mozambique is seeing the return of all sorts of business - including the import of second hand Japanese cars to Zimbabwe.
SEE: Zimbabweans import more cars through Mozambique thanks to peace accord
Have a great week.