Mozambique 5 August: Crises continue to bite
Good afternoon. News of lower limits on foreign cash withdrawals at Mozambican banks spread like wildfire today after a customer email from Standard Bank hit social media. The measures appear to have been taken in anticipation of new central bank restrictions which have not yet been published, and not all of Mozambique’s banks have followed Standard’s lead. Our article has more:
SEE: Mozambique banks put limits on foreign cash withdrawals
As Mozambique’s politicians never tire of saying, the only durable solution to the country’s balance of payments crisis is to start producing more domestically. But farmers producing wheat in Tete say they can’t access the Mozambican market and so they are forced to sell their produce to Malawi.
SEE: Tete farmers sell wheat to Malawi while Mozambique spends $400m a year on imports
A Portuguese project to grow eucalyptus and export pulp for paper aims to bring in $1 billion a year in export receipts when it’s up and running in the middle of the next decade. But the company’s latest financial results show that things are not going to plan.
SEE: Mozambique crises hit Portucel plantation plans, as IFC cuts investment
There was good news, however, for one of the companies betting on Mozambique’s gas boom - and good news too for the prospects for local content in the sector.
SEE: Australian gas sector training company lands first contract in Mozambique
Have a great weekend.