Mozambique 30 Sept: Frelimo tackles the big questions
Good afternoon. Frelimo’s top brass will converge on Matola tomorrow for a three-day meeting to try to hammer out a party line on the biggest questions facing Mozambique - including what to say to the international mediators’ proposal on sharing power with Renamo.
SEE: Mozambique ruling party to deliberate decentralisation at 3-day conference
The proposal has not yet been made public, and nor do we know for certain Renamo’s position on it - but indications are that Renamo has not rejected it. Frelimo is therefore in a tricky position - can it afford to be seen to reject a proposal put together by independent brokers, some of whom were nominated by the President himself?
SEE: Mozambique government needs time to analyse power share proposal
The question is even more sensitive at a time when Mozambique is working hard to get back into the good books of the ‘international community’ - in particular, the IMF. The Fund ended a week-long trip to Maputo yesterday and said that although things are going in the right direction, there is more to be done before lending can restart.
SEE: IMF downgrades Mozambique growth estimate, recommends further tightening
The Fund was happy to see promises of further austerity in the draft budget for 2017 that came out this week, but may have been less impressed by the government’s apparent commitment to try and defend the value of the currency - which the IMF says should be allowed to float freely.
SEE: Mozambique government promises new measures to defend currency
The effects of the currency crisis are hard to ignore, however - and could be fatal for industries that rely heavily on imported inputs, like cement.
SEE: Foreign exchange crisis threatens Mozambique's growing cement industry
The energy and mining sectors in Mozambique are still digesting Thursday’s shock announcement removing minister Pedro Couto from government. It remains to be seen whether it will hasten or delay the gas projects that Mozambique is so desperate to see happen.
SEE: Mozambique energy minister sacked by President Nyusi
As is usual in these situations, the sacked minister was not hung out to dry but was given another plum position in the still highly centralised administration of Mozambique - ensuring he will still be among the delegates at this weekend’s party conference.
SEE: Mozambique energy minister moved to head up Cahora Bassa dam company
His successor will have to deal not only with the protracted negotiations around the gas projects, but a number of others which are also coming to the boil. Mitsui’s planned investment in Vale’s coal mines is back on - if it were ever off - and Indian coal miner ICVL is looking to restart operations at the mines it bought from Rio Tinto in 2014.
SEE: Vale, Mitsui publish revised terms for Mozambique coal investment
SEE: Indians aim to restart Rio Tinto’s old Mozambique mine in early 2017
And it doesn’t stop there. Rio Tinto is still in Mozambique with a heavy sands mine concession in the south of the country and it appears to be expecting a decision next week on whether or not it can join up with Savannah Resources’ neighbouring concession.
SEE: Decision on Rio Tinto Mozambique sand mine JV expected in 10 days
And in the promising graphite sector, Triton Resources has appointed a new MD in its route back to health after entering administration earlier this year.
SEE: Rescued Mozambique graphite miner turns page with new MD
Have a great weekend.
RECENT POSTS
Decision on Rio Tinto Mozambique sand mine JV expected in 10 days
Mozambique ruling party to deliberate decentralisation at 3-day conference
Vale, Mitsui publish revised terms for Mozambique coal investment
IMF downgrades Mozambique growth estimate, recommends further tightening
Mozambique energy minister moved to head up Cahora Bassa dam company
Mozambique government needs time to analyse power share proposal
Foreign exchange crisis threatens Mozambique's growing cement industry
Mozambique government promises new measures to defend currency
Indians aim to restart Rio Tinto’s old Mozambique mine in early 2017
