Mozambique 27 April: Government explains ProIndicus, and minimum wages rise
Good morning. Yesterday afternoon, Mozambique’s Council of Ministers met to take stock of the revelations made to the IMF by Prime Minister Carlos Agostinho do Rosário, deputy finance minister Isaltina Lucas, and António Carlos do Rosário, chief executive of EMATUM, ProIndicus, and the latest addition to the family, Mozambique Asset Management (MAM).
Addressing journalists after the meeting, government spokesman Mouzinho Saíde detailed the amounts borrowed by ProIndicus and MAM, and the activities that the money was meant for. He said the government would give more details in due course, but for now, the tone is one of justification rather than seeking forgiveness. Mozambique’s coastline faces real threats, and the government’s only mistake was to fail to disclose the borrowing to the IMF, was the take-away message.
SEE: Mozambique reveals $1.4bn hidden borrowing for shipyards, planes and more
It seems the people want more, however. The anonymous calls for demonstrations and strikes over the coming week have focused on the impunity of those who took out the debts and the financial crisis that Mozambique is now in. The announcement of below-inflation pay rises for public sector workers will not help the mood.
SEE: Mozambique energy sector wages up 10% amid calls for public sector austerity
Workers in the mining, energy, and water sectors are receiving minimum wage increases of above, or close to, inflation. The worst-paid workers at big companies in these sectors will now receive more than 6,000 meticais a month - more than $100 at official exchange rates, but not on the informal market.
Qualified workers are, of course, paid far more than that - thanks to the severe shortage of them. To ameliorate that situation, Sasol is planning to build a new training facility to prepare locals to work on its new oil and gas project in Inhassoro, Inhambane province. The South African company is currently looking for a construction firm to design and build the college.
SEE: Sasol launches new training centre project in southern Mozambique
Another South African energy player, SacOil, is considering its options regarding the African Renaissance Pipeline initiative to pipe Rovuma Basin gas to Gauteng in South Africa. While SacOil declined to sign a new joint venture agreement in Maputo last Friday, another company did join the party - Progas Investment Group. The company is registered in South Africa but we know nothing more about them so far.
SEE: New partners for $6bn Mozambique gas pipeline project
On the political front, there are conflicting reports about what actually happened in northern Sofala on Monday when a group of men apparently belonging to Renamo attacked the local administration in the district of Chemba. Initial reports said they’d seized administrative buildings; the police say they foiled the attack immediately. Renamo’s spokesman in Maputo denies all knowledge of the incident.
SEE: Mozambique police say they foiled Renamo attempt to take a village
Finally, it seems the lights are back on in northern Mozambique after an outage on Sunday that disappointed those who thought the floating power plant in Nacala would make such occurrences a thing of the past. Zitamar understands that part of the reason for the outage was to make adjustments to the northern grid so that it can run off the floating power plant alone - but that it is not ready quite yet.
SEE: Lights out in northern Mozambique despite Nacala’s floating power plant
Have a great week.