Date: 13 August 2007

Date: 13 August 2007
The Investor - Mozambique Legal and Business information as received from
MozLegal for the period:
Edition 53 to Edition 58
MCLI takes pleasure in forwarding to you the very valuable Mozambique
Legal and Business information newsletter as received from MozLegal.
MCLI greatly appreciates the partnership with MozLegal and thank them
for making this very informative newsletter available to the Maputo
Corridor Interested Readers.
Please do not hesitate to forward your comments with regards to this
MCLI initiative to us at [email protected]
For any questions kindly contact MozLegal directly as per below:
Director – Adrian Frey
Editor - Joaquim Falé
Mozlegal Lda
Rua General Pereira D´Eça 90
C. P. 1839, Maputo, Mozambique
Tel +258 21 496 900 Fax +258 21 496 802
E-mail [email protected]
Web mail:
Thank you for working with MCLI towards the Maputo Corridor becoming
the first choice for the region’s importers and exporters.
Brenda Horne
THE INVESTOR by Adrian Frey
The #1 Newsletter for top business, investment, and legal news in Mozambique
August 7 2007
58th Issue
Dear readers,
The hotly debated new Mozambican Labor Law has been published in record time.
Less than two weeks after the recent approval by President Armando Guebuza, the law
was published in the Boletim da República under the title Law 23/2007 of August 1.
The law will enter in force on October 30, 2007.
Please see the article under the section, Legal News by Mozlegal for more information.
Adrian Frey
Population census begins
Mozambique's Third General Population and Housing Census began last Wednesday,
and among the first households to be counted in Maputo was that of President Guebuza.
The chairperson of the National Statistics Institute, Joao Loureiro, took about 20
minutes to ask Guebuza all the census questions.
The President's answers, like those of any other citizen, are confidential, since the
census data are used for aggregate, statistical purposes, and never to pinpoint
In a message to the nation broadcast on Tuesday night, Guebuza said the involvement
of all citizens was crucial to the success of the census. He urged all residents in the
country, Mozambicans and foreigners alike, to welcome the duly identified census takers
into their homes. (aim)
Guebuza receives Angolan Prime Minister
Angolan Prime Minister Fernando da Piedade dos Santos ("Nando") has called for
relations between Mozambique and Angola to be strengthened so that they produce
visible results.
Piedade dos Santos declared "our bilateral relations are on the right track, but we need
to carry on strengthening them so that they provide palpable and visible results".
The Angolan Prime Minister congratulated Mozambique on holding the forum which
he described as "an excellent window of opportunity for exchanging experiences and
acquiring knowledge so that we may continue to stand for good governance and
transparency". (aim)
Government 'On Right Path' in Anti-Corruption Fight'
The Mozambican government is on the right path in defining clear policies for the fight
against corruption, claimed Prime Minister Luisa Diogo.
Closing an extraordinary session of the National Anti- Corruption Forum, which she
chairs, Diogo praised the determination and quality of the interventions made by
members of the Forum during the two day meeting.
She believed that this reflected the "unequivocal determination" of the Mozambican
people to overcome corruption and absolute poverty. (allafrica)
Calls for change to Bretton Woods voting structure
A draft memorandum addressed to the heads of the World Bank and the IMF, under
discussion in Maputo at the meeting of the "African Caucus" of Finance Ministers that
began last Monday, calls for an increase in the representation and voting
power of Africa in the two Bretton Woods Institutions.
The memo warns that the role and effectiveness of the IMF and World Bank has been
weakened by a continued erosion of voice of African countries in decision making.
The draft memorandum seeks to redress this by strengthening the voting power of the
poorer countries through an increase in the number of basic votes in the World Bank,
by increasing the number of African chairs on the Boards of the World Bank Group, and
by increasing the overall number of African staff at all levels. (aim)
Finance Ministers discuss IDA replenishment
The "African Caucus" of finance ministers and central bank governors has stressed the
need to ensure the 15th replenishment of the International Development Association
(IDA), the arm of the World Bank that provides soft loans for developing countries.
The spokesperson for the meeting, Mozambique's National Treasury Director Antonio
Laice, said that the caucus wanted to see an increase of 20 per cent in the resources for
IDA-15, which will mean an increase in IDA funding of 26.3 billion special drawing
rights (about 39.8 billion US dollars). Over 50 per cent of the IDA-15 money is likely to
be spent in Africa. Since the replenishment depends on the IDA donors of the developed
world, the caucus is urging African countries to undertake serious advocacy work with
the donors, stressing how urgent a full replenishment of the IDA is to the continent's
efforts to achieve the Millennium Development Goals. (aim)
IMF did cap Mozambican aid spending
The Independent Evaluation Office (IEO) of the International Monetary Fund has
recognized that the IMF did indeed prevent Mozambique, and many other African
countries, from spending all the aid available in the late 1980s and early 1990s.
The director of the IEO, Thomas Bernes, told a Maputo press conference last
Wednesday that his team investigating the IMF's impact on aid to sub-Saharan Africa
had found that "the Fund's medium term forecasts were too conservative, thus biasing
spending in a conservative direction".
One of the lesser-known aspects of IMF interference in developing counties is that it
caps the aid they can spend, usually on the grounds that if all the aid available is spent,
then inflation will rise. (aim)
World Bank loan for higher education
The Board of Directors of the World Bank last Tuesday approved a loan of 15 million
US dollars to Mozambique to help fund the government's Higher Education Project.
The loan, from the International Development Association (IDA), the Bank's soft loans
facility, is additional funding to cover the financial hole left by the project going over
budget on building work and equipment.
The Bank claims that the loan will enable the scaling up of the higher education, science
and technology programs, which includes the provincial scholarship fund, the
competitive Quality Enhancement and Innovation Facility and the National Research
Fund. Disadvantaged science students and top performers in science and technology
will also benefit from the additional credit. (aim)
Mozambique’s cashew nut production set to rise this year
Production of cashew nut in Mozambique could increase by 5,000 tons to reach 80,000
tons this year due to replanting of many trees and control of crop disease, media have
The Notícias newspaper, citing sources in the National Cashew Institute (Incaju), said
3.5 million cashew trees have been sprayed this year to combat fungal disease affecting
the plants, particularly in the flowering season.
The spraying program was begun in May and Inacaju said the initiative is most
concentrated in the provinces of Zambezia, Sofala, Nampula and Cabo Delgado due to
the strategic importance of the cashew harvest to these regions. (macauhub)
Cabo Delgado attains record cotton production
The northern Mozambican province of Cabo Delgado attained this year a record
production of cotton of 43,000 tons, compared with 23,000 tons in the previous season.
Cabo Delgado provincial governor Lazaro Mathe told AIM that "this production is a
landmark in the province. For the first time Cabo Delgado production of raw cotton has
overtaken that of all other provinces".
He said that the Plexus-Mocambique company, that promoted cotton production in the
province, invested about eight million US dollars in seeds and other inputs, which it
provided on credit to the peasant growers. It was this that guaranteed a good
agricultural season.
In Cabo Delgado, cotton is produced mainly in the districts of Balama and Montepuez,
and the main market is Britain. (aim)
Mozambique approves SA investment in Port of Maputo
The government of Mozambique has given the green light for a US$ 80 million
investment by logistics and shipping firm Grindrod of South Africa to enlarge coal and
vehicle terminals in the port of Maputo.
Mozambique’s transport and communications minister, Antonio Munguambe,
announcing the authorization last week, said the South African company, with a 95
percent stake in the coal terminal and a 12 percent shareholding in the port of Maputo,
wants to expand the harbor facilities to ease congestion in South Africa’s docks.
One of Maputo’s advantages is its proximity to South Africa’s Gauteng province, the
location of the country’s commercial and economic capital, Johannesburg. (macauhub)
Canadian firm to make biodiesel in Mozambique
Energem Resources of Canada has acquired a 70 percent shareholding in a renewable
energy venture in Mozambique that will use jatropha to produce biodiesel.
The Canadian firm said last week that under the terms of its purchase, it will invest up
to US$ 5.5 million, including the planting of an additional 5,000 hectares of jatropha
and the acquisition of another 60,000 hectares to produce the biomass crop.
Energem said its acquisition was part of a strategy to focus on hydrocarbons
infrastructure projects and the biofuels sector. As part of this strategy, the Canadian
company has created a new division, Energem Biofuels, based at an ethanol plant at
Kisumu in Kenya. (macauhub)
Corridor Sands funds anti-malaria campaign
Corridor Sands, the company holding the concession to exploit what is believed to be
the world's largest deposit of titanium bearing mineral sands, in the southern
Mozambican district of Chibuto, last Wednesday donated a check for 390,000 US
dollars to finance an initiative to combat malaria. The two year project is intended to
reduce the incidence of malaria in Chibuto by 20 per cent. In 2005, there were 95,000
notified cases of malaria in the district, rising to 97,000 cases in 2006.
Speaking at the launch of the program, the director of the Corridor Sands project, Alan
Cuddon, noted that in Beluluane, on the outskirts of Maputo, a similar project,
largely funded by the MOZAL aluminum smelter, had, over an eight year period, led to
an 80 per cent reduction in malaria cases. (aim)
Tata Steel acquires stake in Riversdale's Mozambique coal project
Tata Steel has acquired a 35 per cent stake in Australian firm Riversdale Mining Ltd.'s
coal project in Mozambique for Australian $100 million (about $85 million).
Tata Steel would now be a strategic investor in the project that is fully owned by
Riversdale through its subsidiary, Tata Steel said. Riversdale Mining Limited,
incorporated in 1986, is listed on the Australian Stock Exchange. Tata steel, which
recently completed acquisition of the Anglo-Dutch steelmaker Corus Group for about
$12 billion, is the world's sixth largest steel-maker. (domain-b)
New viability study on Mozambican heavy sands project ready by March 2008
A new study on a revised project to mine titanium-bearing heavy sands at Chibuto in
southern Mozambique will be published in March 2008, the company involved in the
venture has said.
Alan Cuddon, CEO of Corridor Sands, said that the new design for the project involves
building a smelter for ores at Beluluane in Maputo province near the Mozal aluminum
smelter, instead of the building of a mineral port at Chonguene.
Cuddon told state news agency AIM that the new site for a smelter had the advantage
of the required energy for the project, around 120 megawatts, as well as a nearby port
to export minerals from.
Deputy-Minister of Mineral Resources Abdul Razak said the revised project by
Corridor sands would save around 50 percent on the original investment of the venture,
estimated at around US$ 1 billion.
BHP Billiton leads the Chibuto project with a 90 percent shareholding, the remaining
10 percent of shares held by the Industrial Development Corporation of South Africa.
Baobab Resources gets encouraging results on Seymour Prospect, Mozambique
Baobab Resources PLC reported encouraging results from surface sampling at the
Seymour Prospect and from underground sampling of the Mundonguara mine in
The samples provide 'strong additional evidence for the presence of copper and gold
mineralization over 1 kilometer to the west of the Edmundian Shaft,' the company said.
The company also found certain 'historic workings' that most likely represent
production that commenced around the turn of the last century, which further increases
the along-strike and down-plunge resource potential of the Mundonguara project.
SA firm in Mozambican joint gold venture
Great Basin Gold of South Africa has teamed up with GS Minas e Refinaria of
Mozambique to explore for gold in a concession 80 kilometers south of Manica,
company sources said.
Great Basin, listed on the Toronto and Johannesburg stock exchanges, will hold an 80
percent stake in the joint venture and will have exclusive rights to explore all GS Minas
properties. The South African company is committed to making exploration
expenditures of US$ 2 million over three years on the Tsetsera property in Manica and
other concessions held by GS Minas.
Great Basin is the second South African firm to begin gold exploration in Mozambique
following the acquisition of a concession by Pan African Resources four kilometers
north of Manica for commercial viability studies. (macauhub)
JSW Steel steps up mining in Mozambique
JSW steel has acquired two more licenses for exploring coal mines in Mozambique, as it
boosts efforts to build coal supplies to meet its expanding steel production. The Sajjan
Jindal-led company is expanding production to 10 million tons from the current 3.8
million tons and needs more coal that will burn iron ore and increase its steel capacity.
JSW already has an agreement with a local player in Mozambique to conduct due
diligence on a 6,900-hectare site that could be later mined for coal.
JSW Steel has the option to carry out detailed exploration studies and prepare mining
plans, after it concludes preliminary surveys. If successful, the company can opt to buy
the mines and apply for mining license and operations. (economictimes.indiatimes)
Real Estate News by Mozambique Property
There are many families looking to buy houses in the Maputo and/or Matola area. Do
you have a house that you wish to sell?
Please visit us directly at our offices in the Hotel Cardoso or contact Alexandra Santos
at [email protected] or +258 82 369 8745.
Our website is also worth a visit; log on to
Hiring of Foreigners simplified under new Labor Law
The Labor law currently in force makes it obligatory for companies to obtain
authorization from the Labor Ministry for any foreign staff they wish to employ. If
foreigners are employed without such authorization the company is fined by between 10
and 80 times the statutory minimum wage, and the foreigner is suspended until his/her
situation is regularized.
The new Labor law, expected to enter into force before the end of the year, will greatly
simplify the process of hiring foreigners. Under the new regulations, a small company
(with up to 10 workers) may recruit 10 per cent of its work force (i.e. one worker) from
abroad, without the need for authorization. Medium sized companies (between 10 and
100 workers) can have eight per cent foreign nationals in the workforce, while for large
companies (over 100 workers) the figure is five per cent. In these cases, the Ministry is
merely notified - the question of authorization only arises if the companies wish to
recruit more than this quota. (Mozlegal Labor Law department- Carlos Martins)
National Campaign for the divulgation of the new Labor Law
The Center for Labor Arbitration (CAL), a Mozlegal initiative in partnership with
GTZ-APSP, will launch a campaign for the divulgation of the new Labor Law on 17
August 2007, in Maputo. The first information session will be conducted in Portuguese,
followed by a session in English on 5 September 2007.
In partnership with Tudo Legal, the new Labor law will be presented in the provinces
on the following dates: Inhambane on August 21; Beira on August 28; Nampula on
August 30; and Chimoio on September 4. Click here for more information on the
seminar. If you would like to register, contact [email protected].
New Mozambican Labor Law one step closer to entering into force
The socio-economic and political evolution of Mozambique has created a need for a new
legal framework to govern work, employment, and social security. To this end, the new
Mozambican labor law, passed by the Mozambican parliament, Assembly of the
Republic on 11 May 2007 and approved by President Armando Guebuza on 18 July
2007, has now been published in the Boletim da República under Law 23/2007 of
August 1.
Legally, all laws enter into force 90 days after publication in the Boletim da República,
which brings the date of adoption to 30 October 2007. For a free copy of this legislation
in English or Portuguese, contact Adrian Frey at [email protected].
New Fiscal Regime for Mining Activities
The existing fiscal regime for mining was a target of revision which has resulted in the
recent adoption of Law 11/2007 of June 27 that revokes articles 27 and 31 of Chapter
III of the Mining Law. The new law fixes the rates for the calculation of the production
tax, based on the type of mineral product used for the production. It also fixes the
surface tax rates with respect to the type of license and mineral in use. (Mozlegal
Mining department)
Regulation for Technical and Health Security in Mining Activities
Recently published was the Decree 61/2006 of December 26, which approves the
Regulation for Technical and Health Security in Mining Activities in Mozambique,
applicable to prospection, research and exploration of mineral resources.
This regulation defines the standards and rules to guarantee the health and security of
workers in the realization of mining activities, including the prevention of accidents and
occupational hazards; and the guarantee of hygienic conditions in areas where mining
activities are conducted. (Mozlegal Mining department)
Regulation of Mining Law
In response to growing needs of the rapidly expanding Mozambican Mining sector, it
became necessary to revise the existing Mining legislation. Decree 62/2006 of
December 26 was recently published and approved, putting into force the new
Regulation for Mining Law.
This decree brings innovations relating to the certification of mineral products and the
procedures for exportation of minerals for laboratory analysis. In addition, it develops
the Financial Management of the activity under the supervision of the General
Inspectorate of Mineral Resources and Energy (IGREME), guaranteeing state
compensation in cases where agreements are not observed by title holders.
For more information on this new regulation, contact [email protected].
(Mozlegal Mining department)
Mozambican tourism boom pits locals against foreigners
Stretches of pristine beaches wind around Mozambique's coast, a slice of paradise where
trouble is brewing as foreigners cash in at the expense of locals from a boom in tourism.
Practically destroyed during a 27-year civil war ending in 1994, tourism in the former
Portuguese colony has skyrocketed in recent years, as holidaymakers are drawn to its
white sands, crystal clear waters and relaxed atmosphere.
However locals are railing against an influx of foreigners, mostly from neighboring
South Africa, accused of entering into dodgy land deals with Mozambicans and flouting
environmental concerns as they set up business. Read the full article here. (mail and
Mozambique Airlines increases flights to South Africa
LAM – Mozambique Airlines, in partnership with Mex – Mozambique Express, on
Saturday, 4th of August 2008, launches flights between Maputo and Vilankulos to
Lanseria in South Africa.
The flights will be made by an aircraft of the type Jetstream J41, with capacity for 29
passengers, operating on Mondays, Tuesdays and Saturdays.
The Lanseria Airport is located near Sandton city, and offers faster access to Pretoria,
Westrand, and Midrand regions, with greater comfort for passengers. (travelvideo)
SADC expects 7% growth this year
The Southern Africa Development Community (SADC) expected a growth rate of 7
percent in 2007, but faced challenges of high inflation, the SADC executive secretary
said at the weekend.
Tomaz Salomao hailed economic development in the region, saying SADC economic
performance had improved in output growth and per capita income in 2006 compared
with 2005. "The SADC average real GDP [gross domestic product] grew at about 5
percent in 2006, the same as in 2005," he said.
Angola has achieved the highest GDP annual growth rate of 18.6 percent this year, with
Mozambique and Malawi at 7.9 percent and 7.4 percent, respectively. Excluding
Zimbabwe, the SADC's inflation remained at 17.3 percent.
Zambia will host the SADC summit from August 16 to August 18. (AFP)
Zimbabwe farmers wait out Robert Mugabe
For many of Zimbabwe's 4,000 white farmers forced off their land by President Robert
Mugabe's chaotic and violent land reforms, the chance to start afresh in a neighboring
country was too good to pass up.
In return for the cash incentives of tobacco companies, the farmers agreed to grown a
set number of acres of tobacco to sell to the companies, but the hotter and wetter
climate of Mozambique meant that the tobacco yields were far less than expected. Soon
the farmers fell into debt until many stopped growing tobacco altogether, whereupon
the tobacco companies took them to court to seize their equipment.
At least 70 farmers have returned following the collapse of their new farming ventures
and are hoping that Zimbabwe’s downward economic spiral will hasten the end of
Mugabe’s rule. (telegraph)
THE INVESTOR by Adrian Frey
The #1 Newsletter for top business, investment, and legal news in Mozambique
July 31 2007
57th Issue
Dear readers,
The Solutions “Mozambique’s One-Stop Business Center’s” website at is your daily source for news, information, and events on
Mozambican business and investment. Just three months after its launch, the site has
already received over 20,000 hits. Please keep in mind that the site is updated daily.
Thank you for your continued interest and feedback.
Adrian Frey
Fire devours petrol station
Flames towered into the sky above the Maputo Bay on Friday night and loud
explosions could be heard across the city. The fire was the result of a short circuit at a
petrol station in Catembe, the district that faces downtown Maputo across the bay.
According to workers at the petrol station the accident happened at about 18.30, as a
tanker truck was refilling the fuel deposits. A short circuit in the electric pumping
mechanism gave off a spark which set alight a trickle of petrol on the ground, and soon
the whole filling station, owned by the company Total, was ablaze.
The flames devoured the deposits of petrol, diesel and kerosene, and spread to bottle of
cooking gas stored up nearby. For more than 15 minutes these were exploding like
giant firecrackers. Four people were injured, but there are no reports of any fatalities.
Cardoso assassin tries to escape again
Mozambique’s most notorious assassin, Anibal dos Santos Junior (better known as
“Anibalzinho”), serving a sentence of 30 years for his part in the murder of the country’s
top investigative journalist, Carlos Cardoso, in November 2000, attempted to escape
from his cell in the Maputo City Police Command last weekend.
This is the fourth known attempt by Anibalzinho to escape from that cell since the
Maputo City Court, in January 2006, found that he had indeed recruited and led the
death squad that murdered Cardoso.
Interior Minister Jose Pacheco has announced that Anibalzinho will shortly be returned
to the top security prison, where a “special cell” is being prepared for him. (aim)
Natural disasters linked to climate change
Mozambique's Environment minister, Luciano de Castro, has suggested that the natural
disasters that have struck the country in recent years are linked to man-made climate
change. Mozambique’s contribution to the greenhouse gas effect is miniscule given that
the country has very few heavy industries however, "climate change and its effects know
no borders", said Castro, "and do not discriminate between those who have contributed
most to global warming and those who have contributed least".
Antonio Queface, a physics lecturer from Maputo's Eduardo Mondlane University, said
Mozambique should take adaptation measures to face climate change. Such measures
would include investing in drought resistant crops and water retention technologies, in
order to deal with the likelihood of lower rainfall in the future. (allafrica)
India to cooperate with Mozambique in prevention of labor disputes
The Indian government wants to cooperate with the Mozambican Labor Ministry in
efforts aimed at preventing labor conflicts involving Indian investors or citizens in
Mozambique. Indian High Commissioner Rajinder Bhagat announced the initiative at a
meeting earlier this week with Labor Minister Helena Taipo.
Bhagat pointed out that it was important that any foreign investor or citizen recognized
that each country has its own laws which, therefore, must be complied with.
India is Mozambique’s traditional cooperation partner in many areas, notably education,
information and communication technologies, agriculture, water supply and transport
and communications. (cpi)
New date for provincial elections
Mozambican President Armando Guebuza has postponed the first elections for
provincial assemblies from 20 December 2007 to 16 January 2008.
Guebuza made this change, in a Presidential dispatch issued on Thursday night, on a
proposal from the National Elections Commission (CNE).
Foreign donors have, to date, declined to finance the elections. (allafrica)
Minister demands better performance from police
Mozambican Interior Minister Jose Pacheco challenged the police last Saturday to
guarantee more security to the people if they want to see their own living conditions
“If we want to improve our living conditions, we must guarantee security. With security
we can attract investments, and with investment the state will be able to increase our
resources”, he said. He stressed that, although official statistics indicate a decrease in
overall crime figures nationally, there has been a sharp rise in violent crime in recent
months in the capital, and in the neighboring city of Matola. (aim)
Chinese firm builds water supply system in Mozambique
A new system to supply drinking water to the city of Quelimane, capital of
Mozambique’s Zambezia province, cost 320 million meticais (about US$ 13 million) and
is benefiting around 70,000 people.
Inaugurated last week by President Armando Guebuza, the new system means residents
of Quelimane now have drinking water 24 hours a day. The previous supply was
restricted to 8 percent of the population and only available 8 hours daily.
The project was funded by a World Bank loan to Mozambique’s state Water Supply
Investment Fund (FIPAG) and built by the Sinohydro Corporation of China. (macauhub)
Non-Paris Club members close to agreeing to cancel Mozambique’s debt
Following a series of debt cancellations under the Heavily Indebted Poor Countries
(HIPC) debt relief initiative, Mozambique’s foreign debt has fallen substantially to only
about two billion.
Finance Minister Manuel Chang is quoted as saying the country’s current priority is to
negotiate with non Paris Club creditors such as Hungary, Rumania and Bulgaria.
According to Chang, negotiations with these countries are at an advance stage.
Before HIPC, Mozambique’s debt amounted to more than six billion dollars. (cpi)
France funds rehabilitation of Limpopo National Park
The French Development Agency (AFD) will fund restoration and ‘biodiversity and
ecosystem’ protection projects in the Limpopo National Park in Mozambique’s Gaza
province, reported the newspaper, Notícias.
AFD has pledged 11.5 million euros to finance a highway between Mapai and
Management of the Limpopo National Park said the participation of the French state
development agency would strengthen the capacity to implement modernization
projects in the reserve, which forms part of the Great Limpopo Transfrontier Park,
along with South Africa’s Kruger National Park and the Gonarezhou National Park in
Zimbabwe. (macauhub)
World Bank launches Innovation Fair
The World Bank, in partnership with Mozambican institutions, launched in Maputo last
Monday the "Innovation Fair 2007" open to Mozambican and foreign individuals and
organizations. This is a contest aimed at stimulating innovation and creativity under
the theme 'Information and Communication Technologies (ICTs) for Rural
Khovete Panguene, an official of the World Bank, told reporters that the contest aims to
encourage the use of ICTs for rural development, and the winners will be awarded
between 10,000 and 20,000 US dollars to implement their projects.
To enter the contest, the participants must present, by 27 August, a description of their
idea. The proposals may be presented in partnership between institutions, and can be
fully original or based on ideas that are already in use somewhere else. (allafrica)
Mozambique says its foreign debt “is sustainable”
Mozambique’s foreign debts of US$ 2 billion are at “a sustainable level”, Finance
Minister Manuel Chang has said.
“We have reached a sustainable debt stock and our goal is to remain prudent so as to
not return to the previous situation of being highly indebted,” added Chang.
To keep its debts in check, Maputo will continue to exercise care in taking on new
financial commitments, said Chang.
Mozambique was among the Heavily Indebted Poor Countries (HIPC) until 1990 with
debts in excess of US$ 6 billion. Mozambique’s finance minister said that the country’s
internal debts were presently around US$ 211 million. (macauhub)
Mozambique agricultural exports earn the country about $680 million
Mozambique annually earns about 680 million dollars from exports of agricultural
products to countries of the Southern African Development Community (SADC),
according to Antonio Fernando, Minister of Industry and Commerce.
Fernando said the government will now bet on consolidating the country’s agricultural
potential ahead of regional integration by increasing production and productivity.
He added that efforts would also be focused on access roads.
According to the minister, Mozambique currently exports a total of 15 agricultural
products including ginger, tomatoes, potatoes, onion and maize to SADC states. (cpi)
FNB launches Mozambique operations
First National Bank, a unit of South Africa's second biggest banking group, FirstRand,
announced that it had launched its Mozambican operation, FNB-Moçambique.
The launch follows parent company FirstRand's 139 million rand purchase of an 80
percent stake in Banco Desenvolvimento e Comercio (BDC) from majority shareholder
Montepio Geral Group in Portugal and other shareholders.
FNB – Moçambique, the new designation of BDC, pledges to bring new dynamism to
the institution, through an expansion of its services. The bank also pledges new type of
services including those of leasing and insurance.
Mozambique rail company keen to cut Spoornet wagon link
Mozambique's state-run railway company said on Friday it was investing $30 million to
upgrade its commercial fleet in a move to cut $100 million in wagon hiring fees charged
by South African rail freight firm Spoornet.
Port and Railways company, CFM, plans to refurbish 820 refurbished wagons with the
investment, as an addition to the 600 wagons currently in operation, spokesperson
Antonio Libombo said.
Modernising Mozambique's rail network is a key part of Mozambican President
Armando Guebuza's efforts to boost foreign investment and trade. (reuters)
Xinavane sugar refinery in Mozambique to produce 180,000 tons in 2009
Production of sugar at the Xinavane plant in Mozambique’s Maputo province is
predicted to reach 180,000 tons in 2009, compared to the 61,000 tons produced in 2005,
a company executive said.
Antonio Ferronha, financial director of the sugar refinery, told Noticias newspaper that
the company aimed to put 74,000 tons of sugar from this year’s harvest for sale on
national and international markets.
To reach its boosted production target in 2009, the Xinavane refinery will receive
investments of over US$ 100 million from its shareholders, Tongaat-Hulett of South
Africa (with an 88 percent stake) and the Mozambican state (12 percent of shares).
Railway Partnership in Region
The railway companies of Mozambique, South Africa, and Swaziland have signed an
agreement on the exchange and training of their crews as part of an operational
partnership that also calls for the repair of engines and wagons in any of the three
countries, with international quality standards.
Under the agreement, Mozambican train drivers have started operating with Swazi and
South African engines, and operation manuals are being translated to be used in future
training programmes in the three countries.
Cited in Monday's issue of the Maputo daily "Noticias", the executive director of the
southern branch of the Mozambican railway company (CFM-Sul), Joaquim Zucule, said
that this partnership comes within the context of the regional integration of the
Southern African Development Community (SADC). (allafrica)
Gateway Communications acquires GS Telecom
In a $36.5 million transaction, Gateway Communications acquired the leading provider
of data connectivity services to corporate customers and telecommunications operators
across Africa, making Gateway the largest provider of voice and data connectivity
services in sub-Saharan Africa.
The acquisition was recently announced in Maputo to existing GS Telecom clients,
where some of the advantages mentioned were closer customer support, increased scale,
greater coverage, broader service range, and increased investment.
Gateway COO, Mike van den Burgh, said of the company’s expansion, "Because we are
a customer driven organization, and because Mozambique is such a high growth market,
it is very important that we should have strong presence here."
Fuel Prices Fall
The Mozambican government recently cut the price of diesel by 2.2%. According to a
release from the Ministry of Industry, diesel falls in price from 28.14 to 27.52 meticais a
liter. Petrol too falls in price, but by only 0.5 per cent, from 33.89 to 33.73 meticais a
liter. There is no change in the price of kerosene, at 20.25 meticais a liter, while LPG
cooking gas goes up in price from 41.28 to 41.66 meticais a kilo.
The prices of the other main liquid fuels, jet fuel and fuel oil, are no longer fixed by the
government, but have been liberalized.
The prices announced by the Ministry are valid for the port cities of Maputo, Matola,
Beira and Nacala, where the fuels are unloaded. Elsewhere fuel distributors are allowed
to add their transport costs when calculating the final price. (aim)
Mozambican gold mine to cost $68m
Pan African Resources plans to build Mozambique's first gold mine at a
cost of $68 million (R464 million).
Jan Nelson, the chief executive of the Metorex-controlled company, said
yesterday that Pan African should start building the Mozambique venture in
the third quarter of next year.
The Manica project would be an open-pit mine, employing up to 300 people.
It would cost about $40 million to construct two processing plants and $28 million to
dig the mine. The mine could produce 87 000 ounces of gold a year.
The Manica site has a gold ore resource of 1.5 million ounces at a grade
of 3 grams of gold per ton of rock extracted. (businessreport)
Reserves of Moma Heavy Sands may last for 120 years
The exploitation of the titanium-bearing heavy mineral sands in the district of Moma, in
the northern Mozambican province of Nampula, could continue for over 100 years.
Originally it was thought that the useful life of the Moma mine would be 20 years. But
subsequent discoveries of further reserves have radically changed the forecast, and it is
now believed that exploitation of the heavy sands could last for 120 years.
The new reserves are in the area of Nantaka, and are larger than those at the locality of
Toquito, where the original prospection took place by Kenmare Resources, the Irish
company that won the Moma concession. (aim)
Sasol Petroleum concludes seismic surveys in southern and central Mozambique
The petrochemical company Sasol announced it has concluded off-shore seismic surveys
on blocs 16 and 19 in the southern and central provinces of Inhambane and Sofala.
Sasol recently embarked on an additional search for hydrocarbons in the area adjacent
to the current Temane gas fields, which are among the largest natural gas reserves in
the world.
Sasol plans to hold public meetings in Inhassouro and Maputo in early August to
present the findings of the prospection activities and share information regarding the
ongoing additional surveys. (cpi)
New Mozambican Properties for sale
Mozambique Property has added several attractive properties to its website at By visiting the site, you will be exposed to pictures and
information about premier properties for sale in Mozambique including commercial
beach front property, islands, substantial plots for large scale farming, and beach side
homes. This month, the Mozambique Property team took on Alexandra Santos who
will be responding to your inquiries at [email protected].
Policy of Land Order
The policy of Land Order constitutes a set of directives that allow the Government to
define the general objectives of the instruments of land order. These instruments are
meant to ensure a better distribution of human activities in land, the preservation of
nature reserves and special zones, and the sustainability of human development, while
honoring international treaties and accords in the area of land. This policy document
was recently approved under Resolution 18/2007, published in the Boletim da
República no. 22, Series I of 30 May 2007. For more information on the land activity
designations, contact [email protected]. (Tudo Legal News)
Mozambican legislation in English
Mozambique is currently undergoing a great deal of legal reform, hailed by many as a
step in the right direction for doing business in the country. Mozlegal, through their
services to investors and businesspersons in Mozambique recognized the need to
increase access to Mozambican legislation, particularly in English.
Earlier this year, the firm introduced the service Tudo Legal Blue, where for
USD300/yr, clients receive over 120 legislation translated to English including
updates. Subscribers also have access to model contracts and agreements, FAQs, and
receive the newsletter Tudo Legal News. For information on how to subscribe, contact
[email protected].
Law Passed to Stop Human Trafficking
Over 1,000 Mozambicans, including children, are trafficked to South Africa every year
where they are forced into prostitution or to provide free or cheap labor. In response,
Mozambique's government last week approved a new law which will make human
trafficking a crime punishable with long prison sentences.
The Mozambican bill will be adopted during the next sitting of parliament in September
this year. Chimedza comments that "this is a major achievement, especially as up until
now there has not been one conviction for these kinds of activities in Mozambique."
Diving in Africa
There are many incredible diving spots in Africa and the top 3 would have to include
the Red Sea in Egypt, the Seychelles and Mozambique's Archipelagos.
Mozambique offers some of the best unspoiled diving in the world. The main sites
include Barra Reef which also offers excellent fish viewing opportunities for snorkelers.
The Bazaruto Archipelago is home to hundreds of species of colorful fish as well as
humpback whales, marine turtles, spinner, humpback and bottlenose dolphins, large
game fish like marlins and barracudas and the endangered dugong. The Archipelago
was hit by a cyclone in February this year -- but is looking to re-open its resorts by
October. Baixo do Pinda just north of Nacala has the potential to be one of the most
beautiful and popular dive sites in the world, but few people have yet discovered it. Read
more here
LAM expands electronic ticketing to Beira, Nampula and Pemba
LAM – Mozambique Airlines is expanding its electronic ticketing to other parts of the
country as part of its strategy to reduce unnecessary costs and of efforts to comply with
the recommendations of the International Air Transport Association (IATA).
LAM says that as from the first fortnight of August electronic tickets will also be issued
from the central and northern cities of Beira, Nampula and Pemba.
The airline company launched the new issuing system in Maputo last February. (cpi)
Lonrho’s LonZim banks £32.3 million
Lonrho Plc ("Lonrho"), the African conglomerate with a diverse portfolio of
investments, recently announced that its newly established subsidiary LonZim Plc
(“LonZim”) has raised an initial £32.326 million (US$66.234 million) from a number of
existing institutional shareholders of Lonrho by issuing 46,180,958 LonZim shares.
Lonrho represents 39.4% of that company and currently holds all board positions.
LonZim intends to raise additional funds and seek a listing on a major stock exchange
over the coming months.
LonZim’s principal focus will be to acquire and invest in key assets in the property,
infrastructure, hotel and commercial sectors in Zimbabwe and neighboring countries
including the important access corridor to the coast at Beira in Mozambique.
500 firefighters arrive to fight Mpumalanga fires
Firefighters were battling to contain raging fires in Mpumalanga on Tuesday, Working
on Fire said. Spokesperson Val Charlton said firefighters were deployed to tackle fires
that had broken out in the Lowveld.
"About 500 firefighters have arrived to contain fires. There are about five fires to be put
out," she said.
A series of fires had caused damage in Mpumalanga, Kwazulu-Natal as well as in
Swaziland. The weekend's fires claimed at least 13 lives in KwaZulu-Natal, and six
firemen died in Mpumalanga. (iol)
THE INVESTOR by Adrian Frey
The #1 Newsletter for top business, investment, and legal news in Mozambique
July 24 2007
56th Issue
Dear readers,
Solutions “Mozambique’s One-Stop Business Center’s” is not only committed to
attracting investment to Mozambique, but we are dedicated to ensuring that our clients
have successful and sustainable businesses. If you are interested in a new investment or
are looking for partnerships in an existing one, contact [email protected] or
[email protected]. Visit our site at for your daily source of business news, information, and
Adrian Frey
Period for the registration of foreigners extended
The National Directorate of Immigration has decided to extend the period for the
registration of foreigners to 13 August 2007. The decision was taken to allow that
more foreigners be reached by the process.
The extension of the period results from the fact that a large portion of the foreign
community in Mozambique has still not been censused, in comparison to the forecasts.
For more information on this process, contact [email protected] or
[email protected].
Mozambique pledges to host annual African Development Bank meeting in 2008
Mozambique will stage the 43rd Annual General Meeting of the African Development
Bank in May, 2008 under an accord signed in Maputo.
The deal, signed last Friday by Mozambican Planning and Development Minister Auiba
Cuereneia, states that Maputo “will organize the ADB’s AGM in 2008, ensuring all
logistics for the meeting in coordination with the bank.” Maputo also pledged to make
all necessary national contacts to ensure participation of key sectors at the event,
particularly from the areas of transport, communications and hotels.
“We will ensure that delegates have a secure environment in Mozambique. At the
moment, we are working in all areas to guarantee the success of the Maputo meeting,”
said the minister. (macauhub)
Too Many Donors Spoil the Aid
An excessive number of aid donors is hampering efforts to make development assistance more effective, a
new study has found.
After examining European Union aid to Cambodia, Mozambique and Peru, the Overseas Development
Institute (ODI) in London calculated that these countries have to deal with 15-17 bilateral donors from
the EU, as well as the European Commission. The figure is even higher if bodies representing regions like
Catalonia in Spain or Flanders in Belgium -- both of which have offices in Mozambique -- are included.
Click here to read the full article. (ipsnews)
World Bank approves Mozambique, Malawi electricity loans
The World Bank's Board of Directors last Wednesday approved two loans to fund the
building of new transmission lines between Mozambique and neighbouring Malawi.
The loans, from the International Development Association {IDA}, the Bank’s soft
loans facility, are of 45 million US dollars to Mozambique and 48 million to Malawi.
They are intended to develop the regional electricity grid with the aim of increasing
industrial competitiveness and fostering economic growth.
Mozambique will use the fund to build a 220 kV transmission line from the Matambo
substation in Tete province to the Malawian border 135 kilometres away. As part of the
project, Mozambique’s publicly owned electricity company, EDM, will receive capacity
building support. (aim)
More healthy signs for Mozambique economy
According to information released by the minister of finance in Mozambique, Manuel
Chang, his latest figures show a reduction in the inflation rate to 3.7% in June from
9.4% in June 2006, while annual growth is of 7% to 8%.
Gateway Communications acquires GS Telecom
In a $36.5 million transaction, Gateway Communications acquired the leading provider
of data connectivity services to corporate customers and telecommunications operators
across Africa, making Gateway the largest provider of voice and data connectivity
services in sub-Saharan Africa.
The acquisition was announced last week in Maputo to existing GS Telecom clients,
where some of the advantages mentioned were closer customer support, increased scale,
greater coverage, broader service range, and increased investment.
Gateway COO, Mike van den Burgh, said of the company’s expansion, “Mozambique is
a rapidly expanding economy which translates to an increased demand for services.
Because we are customer driven, Mozambique is a natural place for us to be.”
MTL connects network to Mozambique
Malawi Telecommunications Limited (MTL) is looking into installing a cross-border
fiber-optic link with its counterpart in neighbouring Mozambique, Telecomunicações de
Moçambique (TDM). The proposed connection will be between Mwanza in Malawi and
Zobue in Mozambique. MTL chief technology officer Peter Boll said the USD25 million
project would connect the neighbouring countries and eventually allow onward
connection to the rest of the world. (telegeography)
All Mozambique’s provincial capital linked by optical fiber by 2008
The publicly-owned Mozambique Telecommunications Company (TDM) plans to link
the country’s 10 provincial capitals by optical fiber before the end of 2008.
The news was announced recently by TDM Chairman Joaquim de Carvalho after
inaugurating the optical fiber link between the central cities of Beira and Quelimane, in
Sofala and Zambezia provinces respectively.
The first phase of the project, a link between Maputo, Xai-Xai, Inhambane, Vilankulo
and Beira, was concluded in 2002. (cpi)
Millennium BIM opens another branch in rural Mozambique
Mozambique’s leading commercial bank has inaugurated a new branch in the
administrative post of Xinavane, in Manhiça district, just outside Maputo city as the
government heightens its call for banks to go to the rural areas.
Rural Mozambique has not been properly covered by banking services since the end of
the 16-year war of destabilization in late 1992. However, one by one, the banks are
realizing the potential of the rural areas where the majority of the population lives.
Xinavane is a strategic agricultural area well known for sugar cane plantations. (cpi)
Portugal’s Teixeira Duarte wins Mozambican ferry terminals projects
Portuguese construction firm Teixeira Duarte has been awarded a US$ 6 million project
to rebuild the main road ferry terminals in Inhambane and Maxixe.
The construction projects are seen as vital for the economic development of Inhambane
province, among Mozambique’s poorest regions. Besides renovation of the ferry
stations’ quays, the modernization scheme includes new waiting rooms for passengers,
public toilets and access roads.
In Maxixe, an old quay will be demolished and replaced with a new structure designed
with a 10-ton capacity. A new pontoon dock will allow boats to moor at any tide level.
In Inhambane city, the 200-meter bridge will get a covered walkway to protect users
from other activities aimed to improve shipping operation standards. (macauhub)
SA and Mozambican companies to invest US$ 16 million in private hospital in
A company from Mozambique is joining forces with a South African partner to build a
private hospital in Maputo, company sources have said.
Isidora Faztudo, CEO of Hospital Privado de Maputo (HPM), said last Thursday that
the US$ 16 million project was a joint venture between Lenmed Health of South Africa,
with a 60 percent shareholding, and Invalco of Mozambique, holding the remaining 40
percent stake.
The project, added Faztudo, has already been given the go-ahead by the Mozambican
government and now awaits approval from Maputo City Hall. The new hospital is
expected to be operational 18 months after its construction gets underway. (macauhub)
CVRD to resettle families off Mozambique coal mine
Brazil's Companhia Vale do Rio Doce plans to spend $30-million to resettle 1 200
families occupying a mining site in Mozambique, clearing the way for development of
the project.
"We have our teams working in the district of Inhangoma to demarcate the areas where
the local population would be resettled in a process to be concluded before the end of the
year," CVRD official Andre Vasconcelos was quoted.
Some of the money would be used to provide housing, sanitation, schools and water
supply for the families now living at the Moatize mine development in the Northern
Province of Tete. (miningweekly)
Coal shortage to Tete companies
The company "Minas de Moatize", in the western Mozambican province of Tete, is
finding it difficult to honour its commitment to supply Mozambican clients with coal,
because it has prioritized exports.
The coal exports have put Minas de Moatize on a collision course with the company
Mozambique Leaf Tobacco, which complains that it is not receiving enough coal for its
tobacco processing plant in Tete city, while dozens of truckloads of coal can be seen
heading for the borders.
All the coal mining companies that have been operating recently in Moatize are small
operations. That is all set to change, with huge planned investment by the Brazilian
mining giant, the Companhia Vale do Rio Doce (CVRD). (allafrica)
President of the Republic puts new Labor Law into effect
President Armando Guebuza formally put the new Mozambican Labor Law into effect
on 18 July 2007. The hotly debated Labor law was approved by the Mozambican
parliament, Assembly of the Republic, on 11 May 2007, and has now been verified by
the Chief of State that it is in line with the fundamental law.
Following the President’s approval, the law will be published in the Boletim da
Republica which could take two months, said the Coordinator for the Center for Labor
Arbitration-CAL, Miguel Pinheiro.
The law will enter into force 90 days after its publication in the Boletim da Republica,
which brings the expected date of adoption to December 2007 or January 2008.
The new legislation is available at the CAL website
Banking Institutions are the target of inspection
The Ministry of Labor announced last week that from 17-28 July 2007, it would be
conducting a nationwide inspection on the banking sector to verify the compliance of
the labor law and regulations within the sector.
In Maputo City, the General Labor Inspection will begin its program at the Millennium
BIM headquarters.
The Labor Law campaign, to be launched by the Ministry of Labor, will be proceeded
by a meeting between the Ministry, the National Syndicate of Banking Employees and
the Millennium BIM Directorate. The meeting will close with a press conference at the
Ministry of Labor. (CAL)
Seminar on the Madrid System held in Maputo
On 11-12 July 2007, the World Intellectual Property Organization (WIPO) and the
Industrial Property Institute (IPI) of Mozambique organized a seminar on the Madrid
System for the International Registration of Marks and the importance of patents for
the creation of small and medium enterprises.
The system offers multiple advantages in the process of registration and payment of
taxes, through its streamlined approach to international registration of marks.
Based on WIPO studies, the Madrid System has clear advantages to developing
countries, using the success of the mark GRINGO as an example. Their motto to
countries, companies, and individuals is “Do not waste time or money investigating
things that have already been invented or discovered”.
Mozlegal’s Department of Industrial Property
Recognizing the importance of Industrial Property in the strengthening of Mozambican
business, Mozlegal’s Department of Industrial Property (DIP) was launched in 1999,
when the registration of industrial property rights was reinitiated under the Industrial
Property Code, Decree 18/1999 of May 4. Since then a new decree has been approved,
Decree 4/2006 of April 12, and the Department has grown substantially in capacity and
services. DIP offers a range of legal services including the registration of marks,
patents, designs, industrial models, logos, and establishment names. It also has a
litigation office that handles provisory oppositions and refusals.
The department has an office created specifically to counter piracy, offering professional
assistance to interested companies. For more information on the Department of
Industrial Property, contact [email protected] or [email protected].
Industrial Property Code
The new Industrial Property Code, approved by the Decree 4/2006 of April 12, has
entered into force. The new code has introduced significant alterations to the
procedures concerning the modalities of industrial property rights, mainly with regards
to marks. For more information, contact [email protected] or
[email protected]. (Tudo Legal News)
New legislation for mining sector published
In response to growing needs of the rapidly expanding Mozambican Mining sector, it
became necessary to revise the existing Mining legislation. The Mining law would
have to adapt to the new realities and establish rules for technical and health security in
the sector. As a result, a new Regulation for the Mining law and a Regulation of
Technical and Health Security in Geological-Mining activities were published and have
been in force since December 26, 2006.
The fiscal regime for mining activities was also a target of revision and in response to
this, the new tributary regime for the sector recently entered into force on June 27,
2007. For more information on Mining Legislation, contact [email protected].
Tudo Legal News
Tudo Legal News is another breakthrough service offered by the Mozlegal/Pandora
Box initiative, Tudo Legal. The objective of this new Tudo Legal service is to keep
readers updated on all legal news in Mozambique. Tudo Legal News is free to all
members of the Tudo Legal Project. For more information on how to join Tudo Legal,
contact [email protected] or visit
Mozambique adventure
With its remote, tropical appeal, marzipan-white beaches, inland mountains, and offshore islands that make up an archipelago of natural beauty, Pemba in northern
Mozambique is the gateway to an exclusive new adventure destination.
Now serviced twice weekly from Johannesburg by Airlink, this undiscovered part of
Africa has been opened up to travel, romance, adventure or simply switching off.
At the gateway to the Quirimbas Archipelago, the modern traveler can get marooned in
style in exclusive resorts, including Ibo Island, Matemo Island, Medjumbe Island,
Quilalea Island, Vamizi Island and Londo Lodge
Airlink flies the Pemba route on Tuesdays and Saturdays (with two return flights on
Saturday). Visit or contact Airlink marketing on 011-961-1700.
Mozambique to build hotels nationwide
Mozambique’s tourism ministry is launching a $55 million national project for the
construction of quality hotels in all regions of the country, said Tourism Minister
Fernando Sumbana. The project, dubbed Capulana, will be financed from the National
Tourism Fund and is aimed to develop tourism in areas of the country where there is
little of no quality accommodation.
Medium-sized hotels will be built with power and water supply systems to ensure
quality and efficiency of service, Sumbana said.
Mozambique’s tourism ministry says the hotel-building scheme comes at an
unprecedented “boom” time for the industry. (macauhub)
Investment in infrastructure behind the current tourism boom
Tourism Minister Fernando Sumbana says the massive investment made by the
government in infrastructure, notably roads, is behind the current boom of tourism in
Mozambique. Sumbana says that in 2006 alone, the government invested some 80
million dollars on infrastructures.
According to the Minister, the sector currently employs over 30,000 people following
investment projects along the country’s 2,600km Indian Ocean coastline endowed with
magnificent beaches and islands. Developments have also been taking place inland. (cpi)
Government provides $54 million to rehabilitate national parks
The Mozambican government is to provide US$ 54 million to upgrade the country’s
national parks and safeguard the wildlife in the reserves, an official has said.
Albino Mahumana, General Director of local tourism, said that although the
government is still seeking financial backers for the scheme, the funds will solely be
provided by the Mozambican state and the five-year project is expected to begin by the
end of the year.
Maputo’s goal is to rehabilitate the country’s various national parks to restore the
wildlife balance in the reserves.
“It is also hoped that Mozambique will develop its status as an African safari
destination,” added Mahumana. (allafrica)
One-stop border post workshop for Lebombo-Ressano Garcia
The Maputo Corridor Logistics Initiative (MCLI) was well represented at the July 19
one-stop border post (OSBP) workshop in Maputo, with over 20 members from both SA
and Mozambique - representing the road, port, rail, terminals, agents, shipping lines,
transporters, financial institutions, information technology and cargo owners participating.
The objective of the workshop – funded by DFID - was to facilitate a common
understanding of the notion of the one stop border post and to consult stakeholders on
the roadmap for the proposed OSBP at Lebombo-Ressano Garcia.
Said MCLI CEO, Brenda Horne: “This is a matter of real urgency considering that we
have experienced an 80% increase in passenger volumes since the abolition of visa
requirement in our two countries in April 2005.”
THE INVESTOR by Adrian Frey
The #1 Newsletter for top business, investment, and legal news in Mozambique
July 17 2007
55th Issue
Dear readers,
As part of Solutions “Mozambique’s One-Stop Business Center’s” commitment to
keeping you abreast of the Business and Investment opportunities in Mozambique,
please see below for some recently published tenders. Visit the website at to find a list of published tenders.
Adrian Frey
Tender notice: Auditing Consultancy Services
The Government of Mozambique, with the support of the Cooperation Partners, is
making efforts aiming at determining the amount of Value Added Tax (VAT) due by
State Institutions, in the context of invoices issued in public works contracts financed
with external and Government funds. The determination of this amount will serve as
the basis for the adoption of measures for the solution of the problem of the accumulated
VAT payment arrears.
For that purpose, the Government intends to contract consultancy services for which
the objectives and tasks are defined under TENDER Nº 01/ATM-DGI/07. (aim)
Tenders for vehicles and air and sea freight services
Jacana Real World Development, a Mozambican based NGO and member of MCLI, has
put out a number of tenders for vehicle supply (click here), the provision of Air Freight
Services (click here) and Sea Freight Services (click here).
Should you be interested, please communicate directly with Jacana at the numbers given
on the tender documents.
To read more about Jacana please visit their website (mcli)
Muslims Call for Election Postponement
The Islamic Council of Mozambique is asking the government to change the date of the
country's first elections for provincial assemblies, on the grounds that it is likely to
clash with a major Islamic holiday.
The date announced by President Armando Guebuza for the elections is 20 December.
But that date is also the most likely date of Eid al-Adha, one of the most sacred days of
the year for Moslems.
This is a real problem, since Moslems account for about 18 per cent of the Mozambican
population, according to the 1997 census. Observant Moslems will prioritize their
religious duties rather than voting, and so holding elections on 20 December risks an
unnecessary increase in abstention. (allafrica)
Mozambique plans to purchase another dredger
The Mozambican government is planning to purchase another dredger as part of the
efforts to ensure easy access to the country's ports.
The chairperson of the board of directors of the state owned dredging company
EMODRAGA, Tayob Adamo, recently announced that the government has been
negotiating with potential partners for support in this purchase. Adamo explained that
the dredger to be acquired will have a capacity of 2,500 cubic meters.
In the central port city of Beira, Japan recently donated the dredger, "Alcantara Santos",
with a capacity of 1.000 cubic meters. Purchasing another dredger is part of a series of
projects that, taken together, "are the solution that will increase our capacity to operate
at national level", said Adamo. (aim)
Agreement Signed With Millennium Challenge Corporation
The Mozambican government and the United States Millennium Challenge
Corporation (MCC) last Friday signed an agreement under which the MCC will make a
total of 506.9 million dollars available to Mozambique over the next five years.
The money is mostly to be spent on water supply, sanitation and roads in four provinces
north of the Zambezi River (Zambezia, Nampula, Cabo Delgado and Niassa).
The agreement was signed on the premises of the US State Department by
Mozambique's Planning and Development Minister, Aiuba Cuereneia, and the MCC
Chief Executive Office, John Danilovich. Witnessing the signing ceremony were
Mozambican President Armando Guebuza and the US Deputy Secretary of State, John
Negroponte. Read more about the Millennium Challenge Corporation on this article of
the Washington Post. (allafrica)
Italy supports Mozambican state budget
The Italian government has pledged 11.4 million Euros (about 16 million US dollars)
for direct support to the Mozambican state budget for the next three years.
An agreement was signed in Maputo to that effect last Wednesday between Italian
deputy Prime Minister and Foreign Minister Massimo D'Alema and Mozambican
Foreign Minister Alcinda Abreu.
Abreu said that this money will help the government implement its poverty reduction
strategy. The agreement “represents the commitment of the Italian government to help
us fight against the poverty that still affects most of our people”.
For his part, D'Alema said that his government is happy with the consolidation of peace
and democracy, and the economic advances Mozambique has made in recent years. (aim)
Chinese university supports creation of agricultural college in Mozambique
An agricultural college will open in the coming academic year in Mozambique’s
Inhambane province under an accord signed between the Eduardo Mondlane University
in Mozambique and China’s Sichuan Agricultural University.
Mozambican news agency AIM said the accord commits China to supply all types of
support to the new college, aimed to train students in aspects of rural development.
The president of the Mozambican university, Filipe Couto, said the agreement with
China also involved support to the faculties of Agronomy, Veterinary Sciences and
Engineering. (macauhub)
Mozambique sees more Chinese investment
Mozambique expects to attract more Chinese investment and to benefit from Beijing's
new $5 billion China-Africa investment fund. Foreign Minister Alcinda Abreu said
Mozambique was set to strike high-profile deals with new Chinese partners.
"The Chinese people are our friends dating back to our liberation struggle, and today
they are supporting our struggle against poverty," she told Reuters.
China launched the $1 billion first phase last month of the new fund to help finance
domestic firms' investments in Africa. Financed by China Development Bank (CDB), the
fund is part of Beijing's pledge to double its aid to Africa.
China has been offering low interest loans, debt relief and other incentives to increase
its influence in Africa, in return for access to natural resources, notably oil, to feed its
booming economy. (reuters)
SADC free trade will not affect tariff revenues – Mozambican Customs
Liberalization of trade in the Southern African Development Community (SADC) from
2008 will not impact on the level of customs revenues collected by Mozambique, the
country’s national customs services has said.
Under a SADC trading accord, from next year foods including meat, fish, eggs, food oil,
potatoes, vegetables, fruit and yoghurt will cease to carry customs duties.
The assistant-director of Mozambique’s customs services, Julio Nunes, said that despite
a predicted 20 percent fall in tariffs revenues, he was optimistic that state tax revenues
would remain high, as VAT will remain on many imported goods and more businesses
will become liable for this tax.
Under the SADC protocol, tariffs will be removed from consumer products from 2008
as part of a scheme to create a Free Trade Zone, to be followed by a Customs Union and
Common Market in 2015, Monetary Union in 2016 and a common currency in 2018.
Port of Maputo recognized for strategic location and potential
The Port of Maputo in Mozambique is fast becoming a viable alternative to Durban
Harbor in Kwa-Zulu Natal for handling large cargo volumes from the Southern African
Development Community (SADC) region, according to SABC news.
Maputo is Southern Africa's nearest deep water port to Asian markets and boasts a $200
million investment project, which will be completed in the next three years. In addition
to South Africa, industries from Swaziland, Zimbabwe and Botswana also use the port.
The Maputo Port Development Company (MPDC) was awarded a 15-year concession
to manage the port in 2003. It is registered in Mozambique and is backed by a
consortium of European Union investors. (mcli)
A former general goes into aviation
Retired General Joao Américo Mpfumo is to be the representative of four companies
(Avstar Holding Pty, Kuzwayo Enterprises Ltd, SBR Capital Ltd and Mozinvest) which
created the company Mozavstar in Maputo in mid June. The new company’s mission
statement is scheduled domestic air transport and chartered air transport.
The largest shareholder in Movastar is Avstar Holding Pty with 35.5%. It is a South
African company which owns Avstar Aviation in Durban whose director is Rory
Loader. Last year Avstar Aviation acquired 15% in the local low cost company 1Time
and participated in an attempt to launch Victoria International Airlines in Uganda with
other investors. (africaintelligence)
AUTOVISA presents the Mozambican market with new car models
The Mozambican market has just received two new models of vehicles 4X2 and 4X4 of
Chinese make with engines from the respected Japanese makes Isuzu and Toyota.
These are the ZNEN vehicles which have imposed themselves on the international
market and now available on the Mozambican market through AUTOVISA.
ZNEN is a make that offers, not only on the Mozambican market but the rest of the
world, the best quality versus price relationship on the competitive 4X4 vehicle market.
Two models are as from now present in Mozambique, namely ZNEN Pick up, with
Isuzu engine, and ZNEN SUV, with a Toyota engine. (cpi)
Forestry Company established in Niassa
A new forestry company, Malonda Treefarms, was formally established last Monday,
although it has in fact been operating in the northern Mozambican northern province of
Niassa since January.
The company has been set up by the Mozambican Malonda Foundation in partnership
with the Norwegian concern, Treefarms.
It has an initial share capital of 500,000 US dollars, 80 per cent provided by the
Norwegians and 20 per cent by the foundation.
Treefarms managing director, Mads Aspren, announced that it will operate initially in
an area of 46,000 hectares, in the Niassa districts of Lichinga, Sanga, and Muembe. (aim)
Tax on diesel for fishing vessels to be reduced
The Mozambican government is studying ways to reduce the tax on diesel used by
vessels fishing for prawns. Fisheries Minister Cadmiel Muthemba told AIM that this
measure aims at solving the crisis the fishing companies are facing. Some claim that the
high costs of fuel are bankrupting them.
The tax is currently fixed at 3.73 meticais per liter; however, businesses in fisheries,
agriculture and industry have already received tax reductions, and are only paying half
this amount. Nonetheless, the fishing operators claim that it is still too much.
“I hope to have some solutions before the end of this year, to enter into force by 2008”,
said Muthemba.
Muthemba acknowledged that fuel accounts for about 50 per cent of the operational
costs of prawn fishing. (aim)
The new scramble for Africa
In the not-too-distant past, Africa was a hot spot of mineral exploration and mining
extraction. But unrest and political instability on the continent in more recent decades
caused many mining companies to withdraw, resulting in not only a decline in
production, but also an underinvestment in prospecting, particularly through the
deployment of modern exploration techniques.
However, the landscape is changing, with greater political stability emerging at a time
when the demand for mineral resources is growing strongly, on the back of a seemingly
insatiable raw- materials appetite from China. This is leading to a strong recovery in
prices, which some believe could continue for some years yet. Click here to read the full
article. (miningweekly)
Guebuza Invites U.S. Companies to Prospect for Oil
Mozambican President Armando Guebuza has urged American oil companies not to be
left behind in the current race to prospect for hydrocarbons in the Rovuma basin, in the
far north of Mozambique. Guebuza was speaking in Washington last Thursday at a
seminar on business opportunities in Mozambique.
The geology of the Rovuma basin suggests that oil and natural gas may well exist
there, and so far five companies have won rights to prospect in on and off shore blocks.
Only one of these, the Houston-based Anadarko, is from the U.S.: the others are ENI of
Italy, Artumas of Canada, Norsk Hydro of Norway and Petronas of Malaysia.
Guebuza said there was space for other companies to prospect for oil, and announced
that shortly Mozambique would be putting other blocks up for tender. (allafrica)
Government committed to the production of biofuels
The Mozambican government is seriously committed to a program to produce bio-fuels,
and says it will strive to create all the necessary conditions for this end, according to
Science and Technology Minister, Venâcio Massingue. Massingue called on the
contribution of farmers, industrialists, distribution companies and researchers.
Studies ordered by the Energy and Agriculture Ministries presented in Maputo last
Wednesday, by consultants from the United States company Ecoenergy, show that
Mozambique has the potential to produce 40 million liters of bio-diesel and 21 million
liters of ethanol a year.
If you are interested in investing or knowing more about Mozambican biofuels, contact
Solutions, “Mozambique’s One-Stop Business Center” at
[email protected] or +258 82 402 3573.
Deadline for Biofuel Strategy
The Mozambican government has given a deadline of two months for consultants from
the American company Econenergy to deliver their proposal for a biofuels strategy and
policy for Mozambique.
According to Antonio Saide, the National Director for new and renewable sources of
energy, in the Ministry of Energy, such a strategy document is a fundamental step in
drawing up a viable program for the production of ethanol and bio-diesel.
The consultants have already produced one study on Mozambique’s biofuel potential,
which suggests that jatropha, ricin, African palm, and coconuts can be used to produce
bio-diesel, while ethanol can be based on sugar cane, maize and cassava.
The challenge now is to identify which of these should be used, bearing in mind the
viability of production and the quality of the end product. (aim)
Coaltrans South Africa 2007
A must attend for all those interested in the coal industry, the Coaltrans South Africa
2007 will take place on 4-6 September 2007 at the Intercontinental Sandton Sun &
Towers, Johannesburg, South Africa. To receive a €150 discount on the standard rate,
you must register before 20 July 2007. For more information, contact Josef Lanjri at
[email protected]. Click here for full conference details. (mcli)
Portuguese Company Fined for Violating Labor Law
The Portuguese building company Tamega, after paying a heavy fine for several
violations of Mozambican labour legislation, has promised Labor minister Helena Taipo
that it will clean up its act.
According to a Labour Ministry press release, Taipo received a promise from Tamega
company director Antonio Teixeira Jose de Sousa that the management will correct all
the anomalies detected. Sousa thought the crisis in Tamega's Mozambican operations
serious enough to fly from Lisbon to meet with Taipo.
Tamega's Mozambican workforce had denounced racism and discrimination by the
Portuguese managers. When the General Labor Inspectorate investigated, it found that
the workers' protests were well founded. Contact [email protected] or
miguel.pinheiro@mozlegal for information on the Mozambican Labor Law.
Bill repealing law on Economic crimes ruled unconstitutional
For the first time, Mozambique’s Constitutional Council has thrown out as
unconstitutional a bill passed by the country’s parliament, the Assembly of the Republic.
The bill in question was debated by the Assembly in March, and repeals laws on
economic crimes, one from 1982 and one from 1987.
Introducing the bill in the Assembly, the Minister of Industry and Trade, Antonio
Fernando, declared that the laws being revoked were “out of date” and any real crimes
they sanctioned were covered in the Penal Code and the 2004 anti-corruption law.
But Attorney-General Joaquim Madeira and President Armando Guebuza feared that
repealing the laws, without putting anything in their place, risked creating “a legal
vacuum”, and decriminalizing a range of damaging and fraudulent behavior. This fear
was confirmed by the Mozambican Constitutional Council. (aim)
Maisha Spa for Polana Serena
The Polana Serena Hotel in Maputo has a new spa, named ‘Maisha’, which means ‘life’
in Swahili. The spa has been built in the style of a sultan’s palace. All treatments take
place in private mosaic-patterned rooms, each with its own changing and washroom
facilities. Signature treatments include deep-tissue massages, ‘ritual coconut milk’ body
wraps, ‘Andean hot-stone massages’ and ‘salt, ginger and lemon body rubs’. All
treatments make use of all-natural essential oils, such as frankincense and juniper.
Londo Lodge specials for Mozambican residents
Londo Lodge is an exclusive beach & bush resort north of Pemba, Mozambique. Set on
a peninsula surrounded by blue Indian Ocean waters and East Africa's finest beaches,
this private boutique resort is hidden amidst lush virgin African baobab bush and
abundant coral reefs.
Londo Lodge has only six luxury villas to guarantee full exclusivity and privacy.
Experience the breathtaking sunset views over the Pemba bay area, delicious seafood,
superb diving, immaculate service and true romance. The lodge is currently offering a
super discount rate of $200USD per person for Mozambican residents. For more
information, contact [email protected]. (eurotravel)
National Tourism Day to be held in Manica Province
Mozambique this year will celebrate tourism during its National Tourism Week from
23-29 September 2007, with the main events coinciding with World Tourism Day on 27
September. Each year the event is hosted by a different province, where this year
Mozambique Tourism week will be held in Chimoio, in the central province of Manica.
The organizers of this year’s events are the Ministry of Tourism (MITUR), the Manica
Provincial Directorate, and select members of the business community.
Activities include Motocross, a fashion show, basketball game, fishing competition on
the Chikamba dam, 4 x 4 rally from Chimoio to Chimanimani and several evening
functions which showcase Mozambique’s tourism industry.
For more information, contact Monty Hunter at [email protected] or email
[email protected]. (monty hunter)
Mozambique fines illegal tour operators
More than 100 tourism operators in Mozambique have been fined a total of $250 000
for operating without the proper documentation.
Orlando Candua, Inspector general in the Ministry of Tourism said most of these
operators had set up establishments in Maputo, Gaza and Inhambane province, the
country's top tourist destinations.
This was found after the ministry carried out inspections last year.
In Mozambique tourism is one of the fast developing sectors in which the government
has introduced incentive to operators, but most of these investors were not willing to
register properly.
For more information on government incentives for tourism, contact
[email protected]
FACIM 2007: Mpumalanga Pavilion
The Mpumalanga Economic Growth Agency (MEGA) will once again be hosting a
Provincial Pavilion at the annual Maputo International Trade Fair – FACIM taking
place from the 27th August to 2nd September 2007. Following on last year’s success,
MEGA in their role as the official Trade and Investment Promotion Agency for the
Province of Mpumalanga, South Africa, would like to extend an invitation to the
provincial business community to be part of the Mpumalanga Pavilion at FACIM 2007.
MEGA will be sponsoring the exhibition costs of 20 companies who would like to
promote and sell suitable products and services into the Mozambique market.
Space is limited to 20 Mpumalanga-based companies, so if you are interested, please
complete this registration form and fax back as soon as possible. For more information,
contact Andrew Bütler at [email protected] or +27 82 895 6433.
Extended Border Hours Fail
Mozambique's attempt to expand opening hours to midnight at the Ressano Garcia
border post with South Africa has failed due to lack of cooperation from the South
African authorities, reports Monday's issue of the Maputo daily "Noticias".
Initially, it was planned to extend opening hours at the border crossing from 22.00 to
midnight as from 1 July, under an agreement between the two governments to that
effect. According to the head of Mozambican immigration at Ressano Garcia, Orlando
Cossa, on 1 July the Mozambican officials did all work until midnight - only to find that
the South African side closed their gates at 22.00.
The same thing happened on the following days, and so the Mozambican side too felt
obliged to return to the previous timetable. "It makes no sense for us to close at
midnight, if on the other side of the border they're closing at 22.00", said Cossa.
THE INVESTOR by Adrian Frey
The #1 Newsletter for top business, investment, and legal news in Mozambique
July 10 2007
54th Issue
Club of Mozambique News and Information portal
Dear Readers,
In May 2007, the Club of Mozambique officially launched its news and information
portal at The website is “your entryway to
Mozambique”. To stay abreast of the Mozambican business, investment, and tourism
headliners, visit the site once in the morning and once in the afternoon, as the
information is constantly updated. Over the past few months, we have listened to your
comments and suggestions on ways to strengthen the site to better serve the business
and investment community. The site now boasts over 15,000 hits thanks to your
For more information on the Mozlegal initiative, Club of Mozambique, email
[email protected].
Adrian Frey
Don’t build the house from the roof downwards
The Executive Secretary of the Southern African Development Community (SADC),
Mozambique's former transport minister Tomaz Salomão, brought a blast of common
sense to the discussion on the "United States of Africa", when he declared that it is a bad
idea to build houses starting from the roof.
Speaking to Mozambican reporters who are covering the summit of the African Union
in Accra, Salomão said the continent should first consolidate peace and political
stability, and build up the various sub-regional economic communities, before moving
towards the huge challenge of a continental government.
"You don't start building a house from the roof downwards", he stressed. "You start a
house with the foundations, and the more solid the foundations are, the more firm and
lasting will be the building. That is how the African Union should proceed". (aim)
Mozambique commits to gradual liberalization of air space
Mozambique will liberalize its air space in stages, Transport Minister Antonio
Munguambe said at a recent conference organized by the Confederation of Mozambican
Business Associations (CTA).
Among the steps already taken was the 2004 licensing of the private airline company
Air Corridor, following revocation of a decree that gave the publicly owned
Mozambique Airlines (LAM) monopoly along the domestic backbone of Maputo-BeiraQuelimane-Nampula-Pemba.
He said a gradual liberalization would prevent the collapse of the national air
companies, which could lead to increased unemployment.
He encouraged national carriers to seek strategic partnerships with their regional
counterparts. (cargoinfo)
Mozambican debt to Angola should be converted into Angolan property, PM says
The US$50 million owed by Mozambique to Angola should be converted into Angolan
property in Mozambique, Mozambique’s prime minister, Luísa Diogo told Angolan
radio station Ecclesia.
Saying that the Angolan gesture was of capital importance, Diogo added that the two
countries were in negotiations to reach an agreement of that kind.
The prime minister also said that the Angolan and Mozambican Finance Ministries
were analyzing documents in order to “reconcile the debt.” (macauhub)
North and South of Mozambique to be linked by road in 2009
A direct road link between the north, center and south of Mozambique is expected to be
completed in 2009, the Mozambican Public Works and Housing Minister said in
Maputo last Wednesday.
Felício Zacarias, who was speaking at the ceremony to instate the new board of the
National Roads Administration (ANE), said that the aim was to ensure that in 2009
people could travel from Maputo (south) to Cabo Delgado (north) and vice versa in any
type of vehicle at any time, which would be possible when the bridge over the river
Zambeze was finished, as well as other important work on national road number one.
No Donor Money for Provincial Elections
Not a single foreign donor has yet offered any money to finance Mozambique's first
elections for provincial assemblies, scheduled for 20 December, reports the latest issue
of the "Mozambique Political Process Bulletin", a usually well- informed publication
issued by the Association of European Parliamentarians for Africa (AWEPA).
The combined cost of the 60 day voter registration (20 August-18 October) and the
December elections is estimated at 44 million US dollars. But only 12 million dollars is
available from the Mozambican state budget.
In previous Mozambican elections, one of the major donors has been the European
Commission - but this time the Commission had informed the government that it would
not be providing any funding. (
World Bank provides $100m for Mozambican roads
The World Bank agreed on Monday to give Mozambique $100-million in credit to help
upgrade its road network, most of which was damaged and neglected during a 17-year
civil war that ended in 1992.
Mozambique will be exempt from interest and have 40 years to pay back the funds to
the World Bank's International Development Association, said Michael Baxter, the
Bank's director for Mozambique, Zambia and Zimbabwe.
Mozambique's government sees road and bridge construction and modernization as key
to boost economic growth in the Southern African nation, which relies on agriculture
and tourism for the bulk of its foreign exchange earnings. (mail and guardian)
Italy supports rehabilitation of justice infrastructures
The Italian government has granted about two million meticais (80,000 US dollars) for
the rehabilitation of the Chihango education centre, on the outskirts of Maputo, and one
section of the Maputo minors' court.
The Permanent Secretary of the Justice Ministry, Angelo Sithole, and the
representative of the United Nations Development Program (UNDP) in Mozambique,
Ndolamb Ngokwey, signed the contract under which the Italian company CMC will
carry out the rebuilding work.
Rehabilitating the two buildings is part of the Program to Strengthen Children's Justice
in Mozambique, estimated at 2.8 million US dollars, which started two years ago and is
financed by the Italian government. (aim)
Mozambique needs $150 million a year for education
Mozambique is looking to donor nations for at least $150 million a year to expand its
education network, its prime minister said last Tuesday.
Luisa Diogo told Reuters the funds would be needed to meet the southern African
country's U.N Millennium Development Goals, a global campaign which includes
fighting poverty and improving education with a 2015 target date.
The funds would be invested in infrastructure projects and teacher training programs,
said Diogo.
Diogo said the government would also tap the private sector to assist in the education
program. (reuters)
Cooperation with India ‘Very Positive’: Luisa Diogo
"Cooperation between Mozambique and India has been ever growing and it has been in
areas that contribute to the relief of poverty, such as energy, mining, health, education,
agriculture, and in the international arena, among others", said Diogo.
India has granted Mozambique two credit lines, totalling about 40 million US dollars to
be used in programs of electrification and water supply in the rural areas. In the area of
education, Mozambique has sent 45 students to India for courses in various areas.
Indian Minister of State for Foreign Affairs, Anand Sharma, who arrived in Maputo last
Sunday for a two day working visit to the country, noted that his country cooperates
with Mozambique in the area of infrastructure, where Indian companies are involved in
major projects, such as the rehabilitation of the Sena railway line, that links the central
port city of Beira, to the coal mines of Moatize, in Tete province. (aim)
Attracting Investments is priority for Tete
The Strategic Plan for the Development of the western Mozambican province of Tete
stresses as one of its main priorities the attraction of investment.
According to the Strategic Plan, for the period of 2007/2011, Tete should also pay
special attention to job creation and establish close partnerships with the three
countries that border the province, Malawi, Zambia, and Zimbabwe.
The plan is also calling for strengthened efforts in the areas of education, prevention
and the fight against endemic diseases, including HIV/AIDS, and for modernizing the
public administration to improve the quality of services rendered to the public.
Other priorities include stimulating production, particularly agro-industry, mining,
tourism and fishing, through the use of the available natural resources, and the
extension of the supporting economic infrastructures. (aim)
Mozambique seeking Chinese investment in public transport sector
Mozambique wants to attract Chinese capital to the country’s transport sector and
would also like to host one of the special economic zones planned for Africa by Beijing,
an official has said.
“We have interest in creating joint-ventures with Chinese firms that wish to invest in
public transport,” said Mozambique’s ambassador to China, Antonio Inacio Junior.
In June, Transportes Publicos de Maputo (TPM) began operating four gas-powered
buses in the Mozambican capital. The vehicles were built by Yutong in China.
Ambassador Junior also suggested that more Mozambican firms should enter
partnerships with Chinese companies in projects to build roads, water supply networks
and health facilities. (macauhub)
Mozambique's Banco Mercantil Adopts Equinox Software
In a strategic move aimed at increasing its service efficiency, Banco Mercantil E De
Investimentos SARL of Mozambique (BMI), a high profile merchant and investment
bank in Mozambique has chosen to replace the Easy-Bank application with Neptune's
Equinox Banking System.
BMI plans to increase its customer base and service efficiency and effectiveness by a
factor of about 500% in the next two years with a commensurate return on investment.
According to Mr. José Morela, the banks managing director" The only way we can
achieve this objective is by selecting a compatible vendor who commands distinctive
record in software development and implementation and at the same time has the
various solutions that can be leveraged to mobilize customers, improve services and
achieve the target bottom-line." (allafrica)
Chinese company builds steelworks for Arcelor Mittal in Mozambique
MCC Huatian, a subsidiary of the China Metallurgical group, is to build a steel bar and
rail factory for Arcelor Mittal in Mozambique with the capacity to make 400,000 tons,
the Chinese company said, cited by Interfax.
Mittal Steel South Africa in 2006 acquired the companies Companhia Siderúrgica de
Moçambique (CSM) and Companhia Moçambicana de Trefilarias (Trefil), both of which
were in receivership.
Mittal Steel South Africa is part of the Arcelor-Mittal conglomerate, the world’s largest
steel producer. (macauhub).
R1.3 billion sugar expansions in Mozambique
Expansions to Tongaat Hulett‘s Xinavane and Mafambisse sugar mills in Mozambique
are progressing significantly, says Ton-gaat Hulett CEO Peter Staude.
Capital totaling R1,3-billion was allocated to expanding both sugar and cane-growing
activities at Mozambique mills earlier this year. The expansions will result in
production increasing from 115 000 t to 270 000 t, in 2009, when the European markets
open up to least-developed countries, of which Mozambique is one. (engineering news)
Chinese company fined for abuses
The Mozambican Labour Ministry has fined a Chinese owned company operating in the
central province of Sofala 301,000 meticais (over 12,000 US dollars) for a series of gross
violations of the country's labour legislation.
When inspectors from the Sofala Provincial Labour Directorate went to check on this
company, SOGEC-MUTUA, it found that it was paying its workers less than the
statutory minimum wage, and was denying them their holiday rights.
A recent statement from the Labour Ministry, however, said that the company is now
paying the workers the money it owes them, for the entire period in which it was
illegally paying less than the statutory minimum wage and is also working out how
much it owes them in terms of holidays - which the workers have not enjoyed since
2002. (aim)
Guebuza inaugurates fiber optic section
Last Thursday, President Armando Guebuza said that information and communication
technologies do not solve the problems imposed by poverty, since they cannot replace
people, but they can speed up the achievement of the goals of the country's fight to
overcome poverty. He was speaking in the central city of Quelimane at the inaugural
ceremony for the latest section of the country's fiber-optic network, operated by the
publicly-owned telecommunications company, TDM. This section links the port city of
Beira to Quelimane.
Work on the national fibre-optic network began in February 2006 and is due to be
concluded by 2008. The German company Siemens is installing the cables, and the
operation has cost TDM over 8.5 million US dollars. (aim)
Maputo Governor Visits Industrial Park
On July 05 2007, the Governor of Maputo, Telmina Pereira, accompanied by the
Administrator of Boane, the Provincial Director of Public Works and Housing, and
Assistant Director of Planning and Finance, paid an introduction visit to Beluluane
Industrial Park (BIP). An initiative of the Mozambican Government and an Australian
company, BIP was founded in 2000 to strengthen services to Mozal. It now occupies
630 hectares and has about 16 companies that range in size and industry.
Overall, the visit was a very positive and constructive one. The main concerns
expressed by BIP’s tenants were job creation for the local community and the access to
electricity, water, security and transport. Everyone present agreed that working
together to find a solution to the issues raised will lead to positive results, not only for
BIP and the tenant companies, but the community as a whole. (mozlegal)
Mozambique has one of largest deposits
Kenmare’s Moma Titanium Minerals Mine in northern Mozambique, contains one of
the largest deposits of titanium-bearing mineral sands in the world.
The mining process is initially using one of two dredges to mine the mineral-bearing
sands, with both to operate once the dredge pond is enlarged. The ore mined is being
processed through the wet concentrator plant to produce a heavy mineral concentrate.
This concentrate is currently being stockpiled for separation into final products
(ilmenite, rutile and zircon).
The total resource under license to Kenmare has increased by more than 60%, from 101million tons to 163-mil- lion tons of contained ilmenite, with associated increases in coproducts to 12,4-million tons of zircon and 3,6-million tons of rutile. The inferred
resource at Nataka has increased from 49-million tons to 110-million tons of contained
ilmenite, with associated increases in co-products to eight-million tons of zircon and
two-million tons of rutile. (miningweekly)
Moatize coal to create more than 1,000 jobs
The Brazilian company Vale do Rio Doce (CVRD) is set to employ more than 1,000
Mozambicans over the next two years to prepare the take off of coal mining at Moatize,
in the western province of Tete, reports the Maputo daily "Noticias"'.
This guarantee came from Galib Chaim, director of the CVRD subsidiary Rio Doce
Mocambique, last Tuesday at the ceremony at which the Mozambican government
handed CVRD the mining concession title, valid for the next 35 years.
Working in open cast mines, the company plans to extract about 11 million tons of coal
a year. This will include 8.5 million tons of coking coal for export, mostly for use in the
steel industry, while the remaining 2.5 million tons will be used to generate electricity.
“Making legislation accessible”: Tudo Legal launches in Inhambane
In an effort to improve the business and legal environment in Mozambique, Mozlegal
started the initiative, Tudo Legal, to increase access to and understanding of
Mozambican legislation. Thanks to the support of the German government, GTZAPSP, the Tudo Legal project will be launched in Inhambane where users will have free
online access to Mozambican legislation in English and Portuguese, model contracts
and agreements, and an online Help Desk.
The official launch will be on the 17th of July, 2007 in the Conference Room of the
Escola Superior de Hotelaria e Turismo de Inhambane, Bairro Chalambe- Inhambane
City. Sessions will be at 10:00H, 11:30H, 14:00H, 15:30H. Entrance is free but space is
limited. To make your reservation, contact the Tudo Legal Coordinator, Haje Pedreiro,
at [email protected] or Cell: +258 82 328 9600.
Mozambique to invest US$600 million ahead of South African soccer World Cup
Mozambique plans to spend $600 million on new hotels, casinos and other leisure
facilities as part of an effort to capitalize on a tourism boom expected when neighboring
South Africa hosts the 2010 soccer World Cup.
Cited by the Guardian newspaper, Albino Mahumana, director of tourism in
Mozambique, said the country planned to attract a high number of soccer fans to the
beaches and cities of Mozambique in 2010.
It is expected that over 300,000 people will visit South Africa during the month-long
championships, scheduled to begin on June 11, 2010.
The capital of Mozambique, Maputo, is a few hours from Nelspruit, one of the nine
cities that will host the games, six hours from Johannesburg. (macauhub)
Investments to Speed up Cooperation with Tanzania
Mozambican President Armando Guebuza said in Dar es Salaam last Thursday that
there is huge potential for further investments between Mozambique and Tanzania,
which will speed up existing cooperation and strengthen ties of friendship between the
two countries.
Speaking to reporters at the end of a three day visit to Tanzania, Guebuza said that the
bridge now under construction over the Rovuma river, that marks the border between
Mozambique and Tanzania, and the transport corridor based on the Tanzanian port of
Mtwara, will bring further development for the benefit of the people in both countries.
THE INVESTOR by Adrian Frey
The #1 Newsletter for top business, investment, and legal news in Mozambique
July 03 2007
53rd Issue
More Mozambique business and investment news
Dear Readers,
Over the past year, the Investor has involved into a very successful newsletter thanks in
part to your comments and suggestions. We are dedicated to providing our readers
with free, short, to-the-point, informative articles on Mozambican business, investment,
and aid.
We have also recently launched a website at, a news and
information portal, where you can get a daily overview of Mozambican business,
investment, and tourism headliners.
At the website, you will also have free access to the Investor archive, along with in
depth information on Club of Mozambique services, including Solutions|Solucções “the
One-Stop business center” and Tudo Legal “Making Legislation Accessible”.
For more information, please email [email protected].
Adrian Frey
Laura Bush announces $507 million Mozambique aid deal
U.S. first lady Laura Bush announced last Wednesday $507 million in assistance would
be approved for Mozambique to build roads and boost its battle with malaria, which
kills about 150 Mozambicans each day.
The MCC was established by U.S. President George W. Bush in 2004 to reward probusiness, democratic and progressive developing nations with aid and other assistance.
Laura Bush, who is on a four-nation tour of Africa, said the U.S. assistance would be
targeted at strengthening property rights, improving roads and agriculture, and
installing water wells to help provide clean water. (reuters)
Mozambique to Recruit Doctors from Other African Countries
Mozambique aims to recruit 8,000 doctors from other African countries during the next
10 years in an effort to improve its health care infrastructure, which has been highly
affected by the country's HIV/AIDS epidemic, Health Minister Ivo Garrido said.
There are about 650 doctors serving the country's estimated 20 million people -- a
figure that is about three times less doctors than what is recommended by international
health experts. Mozambique has an adult HIV prevalence of about 16%, and many
health care workers are living with the virus, according to Reuters. The country's HIV
prevalence has hindered its ability to provide access to basic health care, including
prenatal services. (pharma-lexikon)
Power without Responsibility: The Mozambique Example
By Elísio Macamo, University of Bayreuth
The former President of Mozambique, Joaquim Chissano - a man admired for his
diplomatic skills, composure and good manners - was angry.
Speaking at a conference on aid at Oxford University he complained about how donors
were using aid to pitch their tents up inside the government machineries of recipient
countries. Chissano was particularly critical of direct budget support and poverty
reduction strategies, as the amount of coordination required between donors and
recipient countries and the level of expertise needed by the latter to meet the goals of
either program effectively committed donors to taking a leading role. Read the full
interesting article here. (oneworld)
Mozambique seeks portion of Chinese investment funds
Mozambique said last Friday it was set to benefit from a new investment fund
announced in Beijing last week to support Chinese companies operating in Africa. On
Tuesday, Beijing announced the creation of a US$1 billion fund to finance trade and
investment by Chinese firms in Africa to reinforce China’s presence on the resourcesrich continent. The China-Africa Development Fund will be financed by the state
Development Bank of China, which says it could increase the fund to US$5 billion.
World Bank praises performance of Mozambique
The Deputy Chairperson of the World Bank for Africa, Obiageli Ezekwesili, last
Wednesday praised the efforts of the Mozambican government in the fight against
poverty and the strengthening of the country's economy.
Speaking to reporters after a meeting with Mozambican Prime Minister Luisa Diogo,
she said that 15 years after the war of destabilization, that ended in 1992, Mozambique
has managed to design macroeconomic policies and other reforms that stabilized the
country's economy and improved its people's living conditions.
Also, Ezkwesili stressed the need to use the country's natural resources, such as coal,
gas, and timber, appropriately in the fight against poverty. (aim)
Millennium Challenge Corporation approves funds
The United States' Millennium Challenge Corporation (MCC) last week approved a
program for Mozambique, valued at 506.9 million US dollars, over three years.
The MCC board met in Washington on Wednesday and agreed on programs (known as
"Compacts") for Mozambique, Lesotho and Guyana.
An MCC press release declared that the Mozambican compact "aims to reduce poverty
levels through increased incomes and employment by improving water, sanitation,
roads, land tenure, and agriculture. This program is expected to benefit approximately
five million Mozambicans by 2015". (aim)
European Commission and Mozambique see eye to eye on agro research
The European Commission and the government of Mozambique have entered into an
agreement for the funding of agricultural research in the African state. Under the
agreement, the EC is apportioning EUR 4.3 million for research on crops including
cotton, potato, cassava and cashew. Glauco Clauzuola, the head of the EC delegation in
Mozambique, and the Mozambican Minister of Agriculture, Erasmo Muhate, signed the
pact on 2 June. (european research)
India Now Among Top Ten Investors
Mozambique's Minister of Energy, Salvador Namburete, said on Monday that the
gradual growth of Indian investment has now put that country among the top ten
investors in Mozambique.
Speaking at the opening of a meeting in Maputo billed as the "Conclave on India/Africa
Project Partnership 2007", Namburete said "Mozambique has become one of the major
African destinations for investment from various parts of the planet".
Namburete said the government hoped to see further Indian investment in such areas as
agriculture, food processing, mining and energy. (allafrica)
Cotton is exception to Mozambique’s general export boom
Cotton is a product that has its origins in Mozambique’s colonial era and the industry is
the exception to the current boom in the country’s main exports, officials have said.
The Bank of Mozambique, in a report published last week on 2006, says the national
cotton industry is facing stiff competition from internationally produced synthetic
The increase of price in cotton was insufficient to compensate for the reduction in sales,
with export value of the product being US$ 45.7 million, down 19 percent over the
previous year, according to Mozambique’s central bank.
The decline in exports is in contrast to the positive results of expanding cotton
production in the 2005/2006 growing season, the best in the past 35 years with 123,000
tons, according to figures released recently from Mozambique’s Cotton Institute.
Corporate Governance under discussion
A recent conference on Corporate Governance, organized by the Governance and
Development Support Institute (GDI), announced the creation of the Institute of
Directors of Mozambique (IoDmz), as a body that will fight for professional and ethical
behavior among Mozambican business leaders.
The new Institute, which hopes to be registered by the Ministry of Justice in the near
future, states, in its founding document, that it intends "to represent directors and
senior managers in private and public sectors in lobbying for public policies that create
an environment for innovation and development".
At the conference, one of the IoDmz founders, Anderson Mondlane pointed to scandals
in Mozambique's recent history, such as the near collapse of the two privatized banks,
the BCM and Austral, in 2000 and 2001, which pointed to a deficit in corporate
governance. (aim)
Mozambican businesses opposed to scanning fees
Mozambican private businesses have urged the Mozambican government to scrap, or at
least reduce, the scanner fees charged in the port of Maputo, for fear that they could
lead to increased prices for consumers, robbing Maputo port of its competitive edge.
The scanner was installed about a year ago, and is used for "non-intrusive inspection" of
merchandise. But management of the scanner was turned over to a private company,
Kudumba, which appears to be using it simply to make money at the expense of the port
users, all of whom are supposed to pay a scanner fee.
Furthermore, where such fees exist in other ports they generally do not exceed 15 US
dollars per container, said Kekobad Patel, the official of the Confederation of
Mozambican Business Associations (CTA) in charge of tax and customs reform - yet
Kudumba was charging 100 dollars per imported container. (aim)
CTA Praises Interest Rate Cuts, Wants More
The chairperson of the Mozambican Confederation of Business Associations (CTA),
Salimo Abdula, has described as "very positive" the recent decision by the Bank of
Mozambique to reduce its key interest rates.
Three weeks ago the Board of Directors of the Bank of Mozambique announced
significant cuts in the interest rates used for operations on the Interbank Money
Market. It cut interest charged in the Permanent Lending Facility from 17.5 to 15.5
percent. The interest rate in the Standing Deposit Facility fell from 14 to 10.5 per cent.
The CTA, however, wants further moves to make credit cheaper and Mozambican
businesses more competitive. The CTA is now undertaking its own study of the
Mozambican financial sector which it intends to deliver to the government, to back up
its calls for cheaper credit. (aim)
M-Cel Running at a Profit
Mozambique's publicly owned cell phone company M-Cel is now running at a healthy
profit while its sole competitor, the South African owned Vodacom, is still making
heavy losses. According to a press release issued by M-Cel, the company made a profit
of 491 million meticais (about 19.6 million US dollars) in 2006.
Total revenue in 2006 was 4.4 billion meticais (about 170 million dollars), which was an
increase of 29 per cent over the 2005 figure, M-Cel boasts that it holds 70 per cent of
the Mozambican cell phone market with a total of 1.48 million clients in December.
Vodacom's latest financial statement, issued in March, admitted to a loss of 177 million
rands (about 25 million dollars) on its Mozambican operations. (allafrica)
Mcel vandalizes historic sites in the war of cell phone providers
Mcel has publicly apologized for defacing the walls of monuments and other public and
private structures on the historic island Ilha de Moçambique. This island, located off
the coast of Nampula, was the first capital of the colonial Portuguese East Africa. Its
exceptional mixture of architecture captures the island’s Arab, Indian, Portuguese, and
African influences. It is this unique blend of cultures that led the United Nations
Education, Scientific and Cultural Organization (UNESCO) to declare it a World
Heritage Site.
Although Mcel has apologized for the disrespectful advertising, no mention has been
made of whether or not they will be forced to remove the garish ads. Click here for
photos of the advertisements. (ramon ynajara, photos)
The 2nd Native American-Southern African Cultural Exchange Visit
From June 26 to July 8, 2007, the W.K. Kellogg Foundation is hosting an exchange
visit of 47 Native American artists and artisans to southern Africa.
This is a return visit following a similar visit undertaken by southern African artists
and artisans to Santa Fe, New Mexico, in August 2005.
The principal aim of the visit is to exchange knowledge, skills and experiences with a
view to strengthening linkages, and working towards increasing indigenous people’s
share in the world’s economy.
From Monday, July 2, to Thursday, July 6, 2007 the delegation will conduct site visits
in Botswana, Lesotho, Mozambique, South Africa, Swaziland and Zimbabwe. The
Mozambique site visit will be hosted by the CEDARTE and ATA under the theme,
Methods, Marketing and Community-based Entrepreneurship. Click here for more info.
(Evaristo Madime)
Companhia Vale Do Rio Doce Says Mozambique Has Approved Mining Contract
Companhia Vale do Rio Doce (RIO) said that the government of Mozambique has
approved the mining contract for the exploitation of the Moatize coal project, located in
the northwestern province of Tete, following the approval of the project development
plan by the Mozambican authorities earlier this month.
The duration of the contract is 25 years and can be extended for additional periods of
time. Further, the contract establishes tax, international trade and foreign exchange
regimes that will govern the company's investment in Moatize.
According to the company, the project involves the exploitation of an open pit mine for
35 years, with an estimated average annual production of 11 million metric tons of coal
products. Out of the total coal production, 8.5 tons would be metallurgical coal and 2.5
would be thermal coal. (rttnews)
Mozambique’s EDM power utility loses over US$ 6 million due to theft
Theft of cables and other equipment has cost Mozambican state power company EDM
more than US$ 6.5 million since 2001, the company’s CEO has said.
Cited by the Noticias newspaper, Manuel Cuambe said US$ 650,000 worth of material
has been stolen in the first half of 2007, with most of these loses caused by theft of oil
from power transformers.
Each of EDM’s transformers costs the equivalent of around US$ 16,000, noted Cuambe,
and this equipment has to be imported, “which takes time,” meaning power cuts in some
areas are likely for long periods. (macauhub)
Mozambique plans new tender for oil
Mozambique plans to launch an oil exploration tender in the southern province of
Inhambane by the end of this year.
Mineral resources minister Esperanca Bias said last week: "When we are ready we will
eventually launch a bid. We are expecting results from block 16 and 19 in Inhambane
and we also have another company drilling in the Zambezi offshore."
Located south of Inhambane, the Pande gas field is a proven world-class natural gas
deposit, with reserves of more than 3.5 trillion cubic feet.
Bias said considerable oil and gas exploration possibilities existed in the provinces of
Gaza, Inhambane, Sofala, Zambezi, Nampula, Cabo Delgado, and related offshore areas.
For more information contact [email protected].
Mining Investment in Mozambique soars by 56%
According to Mozambique’s High Commissioner, Antonio Gu, foreign mining
investment in Mozambique soared to $250 million in 2006. Investment climbed from
$40 million in 2004 to $160 million in 2005.
About 900 valid mining licenses were issued last year, with 25% covering base metals
projects, 25% tantalite, 10% in coal and 8% in gold.
Majors like BHP, Rio Tinto and CVRD Inco are all active in the country, but UraMin is
also exploring for uranium in Mozambique. In mid-June, Areva made an all-cash bid of
$2.5 billion, about $7.75 a share for UraMin. (resource investor)
Pan African completes detailed mapping at Mozambique prospect
Exploratory resource company Pan African Mining last Thursday reported the
completion of detailed mapping of the old Machinga gold mine, located near Cazula in
Tete Province, Mozambique.
The Cazula project comprises five prospecting licenses, covering some 175 m2 km. The
work was undertaken on behalf of the joint venture between Pan African Mining and
Manica Minerals.
Pan African Mining was planning to undertake a reconnaissance core drilling program,
initially consisting of about 1000 m, to evaluate the tenor and extent of gold-bearing
mineralization around and below the old mine galleries. (mining weekly)
Land titles cancelled in Maputo province
The Maputo Provincial Directorate of Agriculture is making good on a longstanding
threat to cancel land tenure rights of investors who fail to use land allocated to them.
Inspectors visited 287 land concessions in five districts - and found that 95 of them had
been abandoned.
The Land Law states that investors applying for land must present a plan for what they
intend to do with it. Mozambican investors have five years, and foreign investors two
years, to put that plan into operation. During that period their land rights are only
If, after the end of this period, there is no sign that the land is being put to productive
use, in line with the investor's original plan, then it should revert to the state. For more
information on this, contact [email protected]. (aim)
New National Minimum Wage in effect
The Ministries of Finance and Labor have set the minimum wage for all of Mozambique
under the Ministerial Diploma 54/2007 of June 11.
After much debate between trade unions, business owners, and government, a decision
was made to readjust the current national minimum wage levels in force in Mozambique
for the sectors of industry, commerce, services and agriculture. Using the prerogative
established in article 47(4) of Law 8/98 of 20 July, and having consulted the social
partners within the framework of the Labour Consultative Commission, the Ministers of
Finance and Labour determine that the following minimum wages will apply, backdated
to 1 April 2007: 1 645.50 MT for employees in industry, commerce and other services; 1
126.50 MT for employees in agriculture and livestock. For more information, or a copy
of the diploma in English or Portuguese, contact [email protected].
Nkwichi Lodge gets an upgrade
NKWICHI Lodge, located in northern Mozambique, is upgrading its facilities and
expanding its accommodation offering.
The lodge is building two secluded houses, Makolo and Songea, to offer privacy to
guests. Both are expected to be completed by next year. The Makolo House will
comprise two en-suite bedrooms and an upstairs platform. The house will also have
private access to Lake Niassa and its own chef. The Songea House will offer outside
dining facilities, a secluded private beach and a circular reception room with a sunken
sitting area. It will also have an upstairs bedroom with a balcony overlooking the
central room downstairs. A separate chalet will be situated near to the main house.
Tourism investment in Mozambique reached US$ 604 million in 2006
Investments in Mozambique’s tourism industry increased by US$ 83 million from 2005
to reach US$ 604 million last year, an official said.
Deputy-Tourism Minister Rosario Mualeia, cited by the Noticias newspaper, said most
of the investment had been in building hotels, roads and in new tourist resorts.
Mualeia said the Maputo’s tourism ministry’s coordination council meets 3-5 July in the
Gorongosa National Park in Sofala province to evaluate developments in the sector over
the last 12 months. (macauhub)
SA-Mozambique border open till midnight
The opening hours at the border of Ressano Garcia have been extended from 10pm to
midnight. The move was put in place to facilitate the easier movement of people and
traffic. The staff at the border post would be beefed up to meet the demand of the new
working hours. There have been recent talks of having the border operate around the
clock. (Sapa)
Maputo Corridor will have simultaneous border clearance by 2009
The Maputo Corridor will have a one-stop border post between Mozambique and South
Africa handling 9m tons along it annually by 2009.
CEO of the Maputo Corridor Logistics Initiative (MCLI), Brenda Horne, last week told
delegates to the RailAfrica2007 Conference and Exhibition in Johannesburg that the
R600 000 border post will be multi-functional.
It will be able to handle passengers and road and rail cargo clearing in separate streams
simultaneously. (CorridorNet)
Mozambique and Zimbabwe plan to cut need for entry visas
Mozambique and Zimbabwe are to abolish entry visas for the citizens of both countries
by the end of the year, the Mozambican high commissioner, Vicente Veloso said in
Harare last Monday.
Veloso called on businesspeople from both countries to make the most of advantages
brought up by the abolition of visas, as this measure would make it easier for movement
of people and goods between the two countries.
Mozambique has already signed visa exemption agreements with countries in the
region, including South Africa and Swaziland. (macauhub)
Zambia to have access to Mozambican port of Nacala as of September
Zambia will be linked next September to the Mozambican port of Nacala, in Nampula
province, according to Edwin h. Hatembo, the Zambian ambassador to Mozambique,
according to Wednesday’s edition of Mozambican newspaper Notícias.
“By September the work will be concluded and from then on we can say that the Nacala
corridor will be one of the doorways for our foreign trade," the diplomat said in
Nampula a few days ago.
The paper said that reconstruction work was underway on the railway line between
Nchingi and Chipaka, in Malawi, in order to establish the link to Mozambique via the
Nacala corridor. (macauhub)