Mozambique 29 June: Alternative routes
Good morning. Mozambique’s resurgent civil war is forcing its neighbours to make alternative plans. If Mozambique does not act fast to restore stability, it could lose custom from its ‘hinterland’ neighbours that proves hard to win back later, despite Mozambique’s geographical advantages.
Malawi, which has never been allowed by Mozambique to use the Zambeze River to transport goods to and from the Indian Ocean coast, now finds Mozambique’s roads too dangerous - and last week signed an accord with Tanzania and Zambia’s TAZARA railway to import fuel by that route.
SEE: Malawi signs fuel import deal with Tanzania railway to avoid Mozambique roads
However, politicians in Mozambique are shuffling slowly towards peace talks. This week, President Filipe Nyusi and Renamo leader Afonso Dhlakama each appointed three new negotiators to the mixed commission. Little is known about Renamo’s appointees, but Frelimo’s are intriguing. While one is a provocative parliamentarian known for baiting his opponents across the house, another is an expert in constitutional reform - suggesting the ruling party may yet prove flexible on Renamo’s key demand.
SEE: Frelimo, Renamo name new negotiators for Mozambique peace talks
Mozambique also needs to upgrade its infrastructure - despite the cuts in public expenditure that are now required. To that end, the transport ministry wants to bring in a private partner to develop the main rail line linking the port of Beira with Zimbabwe. The minister also said the Sena line should be adapted to take other commodities too, given the slump in Mozambique’s coal mining industry.
SEE: Mozambique plans PPP to re-open key rail line
Austerity is set to get tougher in Mozambique following a visit from the IMF which pronounced itself far from impressed with Mozambique’s performance. Despite the shock that surrounded the discovery of $1.4bn in hidden debts, Mozambique has continued to borrow above the limits it agreed with the IMF, under a programme that has now been suspended, and is unlikely to be restored any time soon.
SEE: IMF calls for Mozambique austerity and international audit of EMATUM
There is some better news this week for 75,000 people suffering the effects of the drought in southern Mozambique, after the African Development Bank approved $1 million in emergency food aid. It’s just a shame it took two months from when the bank’s President promised “immediate” assistance on a visit to maputo.
SEE: AfDB approves $1m emergency food aid for Mozambique
Have a great week.