Mozambique 5 April 17: Planning for 2018
Good afternoon. Mozambique’s Council of Ministers has fired the starting gun on the next election cycle, calling municipal elections for 10 October 2018. Renamo has promised it will contest the elections, unlike in 2013, meaning the political map could alter drastically - and unpredictably - one year before the general elections due in 2019.
SEE: Mozambique sets municipal election date for October 2018
The Bank of Mozambique brought in new rules this week aiming to make the foreign exchange market more transparent. The central bank will publish a ‘reference rate’ three times a day, and is also restricting the spread that banks and exchange houses can set between their ‘buy’ and ‘sell’ rates.
SEE: Bank of Mozambique introduces new exchange rate rules
The central bank is also busy sizing up potential new investors in Moza Banco, which it recapitalised in the last quarter of 2016. Zitamar News this week revealed the identity of seven banks which have expressed an interest - and reported that two of them have already pulled out of the process.
SEE: Atlas Mara quits Moza quest as Barclays joins the fray
An onshore oil and gas block in central Mozambique could also be up for grabs if the Indonesian operator does not succeed in winning another extension to its exploration concession.
SEE: Indonesian oil company applies to extend Mozambique exploration licence
And expectations of a final investment decision on the onshore LNG project - which will be by far the biggest project in Mozambique’s history - are being put back again, this time to 2018, one of the shareholders said at a gas conference in Japan on Tuesday.
SEE: Mozambique LNG FID only in Q2 2018, says Mitsui
Friday 7 April is a public holiday in Mozambique, so our next newsletter will come out next week. Enjoy the long weekend!