Mozambique still not using its 'biggest highway': the sea

Welcome to Zitamar's Daily Briefing for 18 November 2022

A note hidden in the back pages of today’s Notícias informs us that the state-owned coastal shipping company Navique is being formally wound up. The announcement comes as no surprise to anyone; as long ago as 2016 it was being publicly described as “extinct”. Nevertheless, it’s a reminder of the difficulties Mozambique has had and continues to have in setting up a functioning cabotage company.

In June 2020, a new Sociedade Moçambicana de Cabotagem (SMC), was launched, a public-private partnership between Mozambican state-owned company Transmarítima, and French marine transport group Peschaud. Almost immediately after the launch, however, the Mozambique government lost control of the port of Mocímboa da Praia to insurgents; some months later, the same fate befell Palma. SMC had been relying on being able to supply the onshore LNG projects in Cabo Delgado, but they remain on hold. SMC’s fleet now consists of just two landing craft, we are told.

Logistical issues in Mozambique’s southern neighbour South Africa have been a boon for the Maputo corridor, as we have frequently noted of late. The busy line, however, is currently interrupted after a train crash earlier this week which looks, from images we have seen, to have been more serious than was first reported. It is unclear how long it will take to get trains running along the line again.

Public works minister Carlos Mesquita is hopeful that the long-planned rail line, from Moatize to a long-planned port on the Zambezia coast, might finally happen given the world’s renewed interest in coal. However, even if the project company can be restructured as now seems necessary, the project would take years to realise – by which time, we hope, coal will be firmly off the menu.

Have a great weekend.

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Agenda:

• Today: President Nyusi embarks on a three-day trip to Lisbon, at the invitation of President Marcelo Rebelo de Sousa

  • One of the draws is the chance to meet newly re-elected Brazilian president Luis Inacio Lula da Silva in the old colonial capital

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💥 Conflict updates:

Islamic State (IS) celebrated its militant activities in Mozambique in an editorial published in its weekly newsletter Al Naba on Thursday. In particular, IS claimed credit for “[threatening] global trade” by forcing the suspension of the Afungi gas projects and triggering the displacement of hundreds of thousands of people. Referring to the recent insurgent offensive through Montepuez, Namuno and Balama, the editorial praised IS fighters for “attacking the mining sector… increasing the economic drain on the Mozambican government, which no longer knows where it will receive the next blow from.”

The article also argued that the government’s recruitment of local militias and foreign armies, namely those of Rwanda and the Southern African Development Community, represented “a clear indication of the failure of the regular government forces”. Despite being driven out of the major towns and into the countryside, where the insurgents are mostly restricted to launching hit-and-run attacks on remote villages, IS insisted that it has ultimately succeeded in turning Cabo Delgado into a battlefield where its fighters can strike wherever they want.

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Also in the news:

• Government hopes renewed coal demand could revive Macuse rail and port project

• Government debt to fuel companies is unsustainable, warns Galp

• Pope appoints bishop of Chimoio to take over Maputo archdiocese

• Mozambique sees $1.7bn in new projects in 2022

Today’s front pages in Maputo. Photo © Faizal Chauque / Zitamar News