Zitamar Weekly, 28 July 2017: A lost generation?
Good afternoon, and welcome to this week’s round-up of the best of Zitamar News. If you are not yet receiving our daily round-up of all the top Mozambique news, please sign up here.
Frelimo’s Central Committee meeting is drawing to an end this afternoon, a day earlier than scheduled. The closing statements had yet to be made as this newsletter was published, so we’ll have to wait for next week to give our assessment on whether it lived up to its ‘historic’ billing.
SEE: Frelimo to hold ‘historic’ Central Committee meeting this week
On Wednesday, Zitamar published a feature piece on the ongoing issue of contested land-rights between communities and companies wanting to use the land for mining or agriculture.
SEE: Feature: Companies and communities clash over Mozambique ‘land-grabs’
The week has been marked with allegations of extreme conflict between Montepuez Ruby Mining and the community of Namanhumbir, in the Mozambican press. The company denies any responsibility for the serious human rights violations apparently being meted out by various security forces in the area.
SEE: Mozambique ruby miner says working with police over torture allegations
The ruby mine is one of a number of companies in Mozambique seeing a good return on investment. Mozambique’s aluminium smelter, Mozal, and Vale’s Mozambican coal mining operation, both reported positive results this week that helped offset poorer performance at their parent companies.
SEE: Mozambique aluminium smelter hits new production records
SEE: Profits up again at Vale Mozambique despite losses at Beira terminal
Meanwhile, South African sugar farmer Tongaat Hulett, is sinking $41 million into a refinery in Maputo province. Down the road, workers at competitor Ilovo’s Maragra sugar plantation are on a four-day strike.
SEE: Mozambique to become white sugar exporter with $41m refinery project
While these projects go some way towards boosting employment and ‘value-adding’ in Mozambique, industrialisation for the country is still “a generation away,” according to a report this week (not available online) from Renaissance Capital’s global chief economist, Charlie Robertson.
Robertson highlighted research by development economists suggesting that countries with literacy rates below 40% cannot grow sustainably - and cannot industrialise until it’s above 70%. Mozambique’s adult literacy rate is just 50%, according to UNICEF - and, worryingly, the age group with the largest number of illiterate and innumerate is adolescents and young people aged from 15 to 19 years old.
The country is hoping that it can find a short cut to industrialisation through gas. But as Zitamar and Interfax report today, the gas companies - led by Anadarko, Eni, and Exxon - will have to significantly drop their prices for the domestic market for that to happen.
SEE: Mozambique needs to offer cheaper gas to encourage downstream industry
See more of this week’s stories in the list below - and have a great weekend.
RECENT POSTS
Mozambique needs to offer cheaper gas to encourage downstream industry
Mozambique ruby miner says working with police over torture allegations
Profits up again at Vale Mozambique despite losses at Beira terminal
Mozambique finance minister rejects bondholder proposal – report
Poll shows Mozambicans exasperated by failing anti-corruption efforts
Frelimo to hold ‘historic’ Central Committee meeting this week
Feature: Companies and communities clash over Mozambique ‘land-grabs’