Mozambique 9 June 2017: Too soon to say it’s back?
“Mozambique is back” President Nyusi said this week - a statement that seems premature before publication of the Kroll report, and the decisions that will follow from the IMF, donors, and from inside the ruling party, Frelimo.
SEE: ‘Mozambique is back’, Nyusi tells international investors
The president, however, is one of the few people who have seen the report, and may be in a better position to judge than those of us who have not. There are still two weeks before even the summary report comes out, Zitamar reported today.
SEE: Mozambique debt scandal audit still under wraps as rumours swirl
One reason for optimism, Nyusi said, is the FID on Eni’s Coral South floating LNG project last week. At the event, Zitamar spoke with Eni CEO Claudio Descalzi who set out his vision for developing the rest of the block, which the Italian company will operate jointly with ExxonMobil once that deal is sewn up later this year.
SEE: Eni’s onshore LNG could deliver $60bn to Mozambique, says Descalzi
One by one, Mozambique’s government is trying to find solutions for its troublesome state-owned companies. While airline LAM and fuel company Petromoc are looking for saviours from outside the country, telcos Mcel and TDM are being merged in the hope that they can be stronger together. Although two wrongs rarely make a right, perhaps efficiencies can be gained through this consolidation.
SEE: New board appointed to oversee Mozambique state-owned telcos merger
The Bank of Mozambique has been one of the country’s bright spots since the arrival of Governor Zandamela last year, but the Kuhanha takeover of Moza Banco is threatening to leave an indelible stain, so soon in his tenure. The solution to Moza Banco’s crisis has raised more questions than it answered, though the central bank is sticking to its story that the alternatives were unthinkable.
SEE: Bank of Mozambique’s controversial ‘Moza’ deal faces ethics scrutiny
And finally, more news from Mozambique’s growing precious stones mining industry, as Mustang Resources moves towards monetizing its expanded concession up in Cabo Delgado.
SEE: Mustang Resources announces expanded ruby mining in Montepuez
Have a great weekend.
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