ALL THE LATEST ECONOMIC, POLITICAL & SECURITY UPDATES

` 31 M ARCH - 07 A PRIL 2017

]`231234

RHULA WEEKLY
M OZAMBIQUE M EDIA R EVIEW

w w w. rhula. net

Central Bank lays down

new exchange rate rules.
Page 19.

EIU expects coal to be

country’s largest source
of export earnings. Page
21.

Co-operation agreements
signed with Equatorial
Guinea. Page 40.

Mitsui expects FID on Next municipal elections

Mozambique LNG project in scheduled for 10 Oct 2018
April/June 2018
 CONTENTS
3

ECONOMY & BUSINESS .....................................................................................................................13

Macro-economy: ............................................................................................................................................. 13
Security concerns complicate investment opportunities in Mozambique ........................................................... 13
No further extensions to Kroll audit ................................................................................................................... 14
Mozambique’s former leader dragged into US$2-billion debt probe .................................................................. 15
Mozambique should negotiate IMF aid before returning to debt markets – S&P ............................................... 16
African Development Bank to support SMEs in the north of Mozambique ........................................................ 17
Mozambican business mission to Canada strives to raise investment and reduce debt .................................... 17
Government defends economic partnership between Africa and the European Union ...................................... 17

Financial Services: ......................................................................................................................................... 18

Central bank lays down new exchange rate rules ............................................................................................. 18
Currency exchange offices abide by central bank’s new rules, follow single reference rate .............................. 18
Atlas Mara quits Moza Banco quest as Barclays joins the fray ......................................................................... 19

Oil & Gas: ........................................................................................................................................................ 19

Mitsui expects FID on Mozambique LNG project in April-June 2018 ................................................................. 19
Dream of cheap biodiesel now over .................................................................................................................. 20

Mining: ............................................................................................................................................................ 20
EIU expects coal to be Mozambique’s largest source of export earnings .......................................................... 20
“No capital gains in Vale-Mitsui deal” ................................................................................................................ 21
Zimbabwe now importing coal from Mozambique ............................................................................................. 22
Imperative to meet challenges of small scale mining ........................................................................................ 22
Fifteen Chinese trucks blocked from entering Mozambique at Zimbabwe border.............................................. 23

Energy: ............................................................................................................................................................ 23
More than 70,000 new customers to be connected to national power grid in Manica and Sofala ...................... 23
Transport, Construction & Development Projects: ............................................................................................ 23
Maputo transport “normal” say police – passengers disagree ........................................................................... 23
Crisis in Mozambique: transport strike and bread price hike ............................................................................. 24
Bus fares rise in Nampula................................................................................................................................. 25
New Maputo-KaTembe ferry enters service ...................................................................................................... 26
Tender to rehabilitate Cuamba-Muita road opens ............................................................................................. 26
Avenida Kenneth Kaunda is being rehabilitated ................................................................................................ 26
Portuguese-speaking countries discuss air safety in Maputo ............................................................................ 27
Infrastructure investment will create employment in Southern Africa ................................................................ 27

Agriculture & Fishing: .................................................................................................................................... 27

Huge potential in Niassa’s agro-processing industry......................................................................................... 27
Grain institute wants to buy up Niassa maize ................................................................................................... 28
President Nyusi calls for increased poultry production in Mozambique ............................................................. 28
Poultry producers promise to raise production, not prices................................................................................. 29
Mozambique government ponders reducing food assistance and increasing seed provision ............................ 29
Displaced people abandon government’s agrarian plan in central Mozambique ............................................... 30
In rural Mozambique, bank-funded irrigation systems bring back life and hope to small farmers ...................... 30
3

Price of maize drops in various retail markets ................................................................................................... 31

Boat engines stimulates fishing in Sofala .......................................................................................................... 32
Protect small farms to meet growing global food needs, study says ................................................................. 32

Tourism: .......................................................................................................................................................... 33
Mozambique institutes visas on arrival for tourists ............................................................................................ 33
Economic crisis may reduce border movement during Easter........................................................................... 33

Other: .............................................................................................................................................................. 33
Government confirms end of wheat flour subsidy ............................................................................................. 33
Serenity in capital after withdrawal of bread subsidy ......................................................................................... 34
Bread: smaller and more expensive.................................................................................................................. 34
Price of charcoal triples in four months ............................................................................................................. 35
Labour officials shouldn’t wait for disputes to erupt – President Nyusi .............................................................. 35
More on Ematum strike..................................................................................................................................... 36
More than 3,600 pensions suspended in Maputo.............................................................................................. 36
Zambézia assembly calls for more jobs for the youth ....................................................................................... 37
INAE seizes a ton of spoiled fish in Chimoio ..................................................................................................... 37
More than 10,000 Brazil chickens seized in Gaza............................................................................................. 37
INAE seizes 46,000 crates from national brewery............................................................................................. 38

POLITICS..............................................................................................................................................38
President Nyusi hosts Equatorial Guinea President Obiang for state visit to Mozambique ................................ 38
Renamo and MDM boycott President Obiang Nguema’s visit to parliament ...................................................... 39
Equatorial Guinea invited to set up representation in Maputo ........................................................................... 40
President Nyusi receives Chinese Deputy Foreign Minister .............................................................................. 40
Mozambique says CPLP “must open up” to globalisation ................................................................................. 41
“Peace in Mozambique should be more debated more” – Mia Couto ................................................................ 41
President Nyusi urges Frelimo to listen to opposing ideas ................................................................................ 41
Frelimo accuses Daviz Simango of failure and says MDM must abandon municipal management of Beira ...... 42
Date fixed for municipal elections ..................................................................................................................... 42
Tiny parties form tiny coalition .......................................................................................................................... 43
Frelimo elects delegates to district conferences ............................................................................................... 43
Nampula governor inaugurates four new district administrators ........................................................................ 43
Assembly extends rights of state employees .................................................................................................... 44

SECURITY ............................................................................................................................................45
Vietnam and Mozambique intensify co-operation in the fight against crime ...................................................... 47
President Zuma extends anti-piracy mission in Mozambique Channel.............................................................. 47

CRIME ..................................................................................................................................................48
Tax Authority launches campaign against contraband ...................................................................................... 48
President Nyusi urges unity in fight against domestic violence ......................................................................... 48

Gaza: ............................................................................................................................................................... 49
Police foil attempted kidnapping ....................................................................................................................... 49
3

Inhambane: ..................................................................................................................................................... 49
Inhambane has a new police commander ........................................................................................................ 49

Manica: ............................................................................................................................................................ 49
Thieves kill guard in Chimoio ............................................................................................................................ 49
Man kills father with a pickaxe .......................................................................................................................... 50

Maputo: ........................................................................................................................................................... 50
Crime rates on the rise in Maputo ..................................................................................................................... 50
Police prevent circulation of counterfeit money in Maputo and Quelimane........................................................ 50
Police raid mandrax factory .............................................................................................................................. 50
Man nabbed with ZAR2-million worth of cocaine in soft-drink containers en-route to Maputo ........................... 51
Fake labour inspector arrested in Maputo ......................................................................................................... 51
Woman burns boyfriend with hot cooking oil ..................................................................................................... 51
Taxi driver murdered in Maputo ........................................................................................................................ 51
Rwandan refugees on trial ................................................................................................................................ 52

Nampula: ......................................................................................................................................................... 52
Indian citizen killed in Nampula......................................................................................................................... 52

Sofala: ............................................................................................................................................................. 52
Beira woman arrested for burning her ex-husband ........................................................................................... 52

Tete:................................................................................................................................................................. 52
Caphiridzange Case suspects detained............................................................................................................ 52

Zambézia: ........................................................................................................................................................ 53
Body discovered in drainage ditch in Quelimane .............................................................................................. 53
Eight arrested for drug-related crimes in Quelimane ......................................................................................... 53

HUMAN RIGHTS, SOCIAL DEVELOPMENT AND NGO’S .................................................................53

Hardship for refugees from Mozambique at Zimbabwe’s Tongogara refugee camp .......................................... 53
President Nyusi promises cyclone damage will be repaired .............................................................................. 55
Mozal donates MT7-million to support victims of Cyclone Dineo ....................................................................... 56
Mozambique among African countries most exposed to El Niño....................................................................... 56
European Union reiterates commitment to support Mozambique ...................................................................... 56
Scholars want history teaching without “moorings of a supposed liberating past” ............................................. 56

HEALTH ...............................................................................................................................................57
Cases of cholera drop in Mozambique.............................................................................................................. 57
OMC president meets with Minister Nazira Abdula to discuss collaboration ..................................................... 57
Nampula doctors dissatisfied by benefit cuts .................................................................................................... 58

WILDLIFE AND ENVIRONMENTAL PROTECTION ............................................................................58

Mozambique bans all logging for three months ................................................................................................. 58
Timber operators urged to protect resources .................................................................................................... 59
President Nyusi promulgates Biodiversity Protection Law................................................................................. 60
Rhino horn trade to return in South Africa ......................................................................................................... 61
 3

GRAPHS
GRAPH 1 – MOZAMBIQUE CURRENCY EVALUATION ...................................................................... 12
GRAPH 2 – TIME PERIOD BY DAY OF WEEK ..................................................................................... 46
GRAPH 3 – INCIDENTS PER TIME SLOT ............................................................................................ 46
GRAPH 4 – INCIDENTS WITH FATALITIES PER REGION .................................................................. 46

Rhula Research and Analysis Team

David Barske, Head of Research and Analysis:
David graduated from the University of Cape Town
with a Master’s Degree in Business Science
(Information Systems). He is a former lecturer and
researcher for the Department of Information
Systems (University of Cape Town), and has
extensive experience as a digital forensic specialist
and as an operations specialist in the fight against
rhino poaching.
Hylton Gowar, Senior Analyst:
Hylton is one of the editors responsible for the
Weekly and analyses the Political and Security
incidents. He graduated from the University of
Pretoria after completing an Honours Degree in
Criminology. He is also involved in risk regarding
oil and mining in Southern Africa as well anti-
poaching projects in Africa.
Michelle Pearl, Senior Analyst:
Michelle graduated from the University of
Pretoria with a Honours Degree in Criminology.
She has been responsible for compiling the
Weekly since its inception over four years ago.
She is also responsible for generating Alerts,
Situation Updates and Info Notes for the Rhula
Information Service.
Brittany Hall, Senior Analyst:
Brittany is the newest member to the Rhula
team. She graduated from University of Pretoria
with BA Cum Laude, BSocSci Hons Cum Laude,
BA Hons Cum Laude and is currently completing
MA Criminology. Areas of expertise include
research, analysis and profiling, with specific
attention to incidents within the mining industry
in Southern Africa.

DISCLAIMER
The information contained in this report is intended to provide general information on a particular subject or subjects. While all reasonable steps
CD
are taken to ensure the accuracy and the integrity of information andISCLAIMER
date transmitted electronically and to preserve the confidentiality thereof, no
liability or responsibility whatsoever is accepted by us should information or date for whatever reason or cause be corrupted or fail to reach its
intended destination. It is not an exhaustive document on such subject(s), nor does it create a business or professional services relationship. The
information contained herein is not intended to constitute professional advice or services. The material discussed is meant to provide general
CONTENTSD
information, and should not be acted on without obtaining professional advice ISCLAIMER
appropriately tailored to your individual needs. Your use of this
document and the information it contains is at your own risk.
 BUSINESS INDEX
3

Abu Dhabi Mar ................................................................. 16 Jindal Power and Steel .................................................... 22

AfDB...........................................................................18, 27
Anadarko....................................................................14, 20
Atlas Mara ........................................................................ 20
BancABC ......................................................................... 20
Banco de Moçambique ..............................................19, 20
Bank of Africa .................................................................. 20
Barclays ........................................................................... 20
Bharat PetroResources Ltd. ............................................ 20
BIC ................................................................................... 20
BMCE............................................................................... 20
BMI International .............................................................. 58
CBZ .................................................................................. 20
Cervejas de Moçambique ................................................ 39
CFM ...........................................................................22, 23
Chatham House ............................................................... 14
Credit Suisse .......................................................15, 17, 37
Dana Tours ...................................................................... 34
Deloitte ............................................................................. 14
Edlows Resources ........................................................... 23
EdM .................................................................................. 24
EIU .............................................................................21, 22
Electro Cruz ..................................................................... 53
Ematum................................................................15, 17, 37
ENI ................................................................................... 14
Eurasia Group .................................................................. 17
Higest ............................................................................... 30
ICVL ................................................................................. 22
IMF .................................................................14, 15, 17, 18
Insitec ............................................................................... 23
Jinan ................................................................................ 24
Kroll ............................................................... 13, 15, 16, 17
MAM .................................................................... 15, 17, 37
Millennium-BIM ................................................................ 35
Mitsui ......................................................................... 20, 22
Moçambique Capitais ...................................................... 20
Moza Banco..................................................................... 20
Mozal ......................................................................... 26, 58
National Bank of Malawi .................................................. 20
Novo Banco ..................................................................... 20
Oil India Ltd. .................................................................... 20
ONGC Videsh .................................................................. 20
Perdigão .......................................................................... 39
Perdix .............................................................................. 39
Portos do Norte ............................................................... 27
Privinvest ......................................................................... 16
Proindicus ............................................................ 15, 17, 37
PTT Exploration & Production Plc ................................... 20
Railroad Corporation ....................................................... 23
Reserve Bank of Zimbabwe ............................................ 23
Sádia ............................................................................... 39
SDCN .............................................................................. 23
Seara ............................................................................... 39
Société Générale ............................................................. 20
Standard & Poor’s ........................................................... 17
Vale ........................................................................... 22, 23
VTB ...................................................................... 15, 17, 37
World Bank ................................................................ 18, 34
ZCDC ............................................................................... 24
Zesa Holdings.................................................................. 23

RHULA INTELLIGENT SOLUTIONS

Rhula Intelligent Solutions is a Private Risk Management Company Joe van der Walt (Operations Director)
servicing multinational companies and private clients operating in Mobile (SA): +27 79 516 8710
Mobile (Moz): +258 84 100 0082
Mozambique. The Rhula Mozambique Weekly Media Review is currently
Email: joe@rhula.net
being distributed to governments, in-country embassies, non-
governmental organisations, research institutes, foreign investors as well David Barske
as local businesses and individuals (on request). For additional Head of Research & Analysis
information on who we are and our services please visit www.rhula.net or Mobile (SA): +27 76 691 8934
contact: Mobile (Moz): +258 84 689 5140
Email: david@rhula.net

SUBSCRIBE TO THE FULL INFORMATION SERVICE

ONE YEAR SUBSCRIPTION The price of an annual subscription to the Rhula Information Service
is US$500 / £400 / €480 and includes ±50 issues of the Mozambique
US$500 / £400 / €480 Weekly Media Review, full Political and Security Alert Service as well
50 DIGITAL ISSUES VIA EMAIL as a quarterly Political and Security Update (including incident maps,
PLUS POLITICAL & SECURITY ALERTS analyses, etc.). Reduced prices are available upon request for
AND QUATERLY UPDATE SERVICE
academic institutions, NGOs / charities and students.

For all subscription related queries please contact weekly@rhula.net