Stock Market / Finance in Mozambique
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MOZAMBIQUE, 2016/04/30
Like a naughty schoolboy caught smoking in the bike shed who is again summoned to the school principal's office, Prime Minister Carlos Agostinho do Rosario flew to Washington to appear before IMF Managing Director Christine Lagarde. Apparently he confessed to her that at least $1.35 billion in loans were taken out in secret without telling parliament or donors - or, most importantly, the IMF.
At least $2.2 bn - equivalent to all government spending for five months - has been squandered in secret on boats of dubious necessity and, it is widely assumed, on corrupt payments. So, what happens presently?
There are two guiding principles which will shape whatever happens. Initial, Frelimo is obsessed by maintaining unity at all costs. Ever since Eduardo Mondlane was assassinated in 1969, Frelimo has realised that it can only gain and keep power by not splitting up. That means no one is expelled from the party no matter how corrupt or incompetent they are; anyone who may be a threat is given a sinecure. Disputes are settled within the party and the aim is for win-win agreements.
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MOZAMBIQUE, 2016/04/29
Like a naughty schoolboy caught smoking in the bike shed who is again summoned to the school principal's office, Prime Minister Carlos Agostinho do Rosario flew to Washington to appear before IMF Managing Director Christine Lagarde. Apparently he confessed to her that at least $1.35 billion in loans were taken out in secret without telling parliament or donors - or, most importantly, the IMF.
At least $2.2 bn - equivalent to all government spending for five months - has been squandered in secret on boats of dubious necessity and, it is widely assumed, on corrupt payments. So, what happens presently?
There are two guiding principles which will shape whatever happens. Initial, Frelimo is obsessed by maintaining unity at all costs. Ever since Eduardo Mondlane was assassinated in 1969, Frelimo has realised that it can only gain and keep power by not splitting up. That means no one is expelled from the party no matter how corrupt or incompetent they are; anyone who may be a threat is given a sinecure. Disputes are settled within the party and the aim is for win-win agreements.
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MAPUTO CITY, 2016/04/21
The International Monetary Fund (IMF) has confirmed the suspension of the second installment of the loan to Mozambique of 283 million US dollars from the Fund's Standby Credit Facility (SCF).
The suspension was suspected instantly the IMF announced, last Friday, that it was cancelling the mission that had been due to visit Mozambique this week because of the “undisclosed loans”, which the IMF put at over a billion dollars.
The SCF is a means of providing financial assistance to low gain nations with short term balance of payments problems. In late October 2015, Mozambique applied for a loan of 204.5 million Appropriate Drawing Rights (about 282.9 million dollars) from the SCF. The IMF governing board granted the request and the initial instalment (about 118.9 million dollars) became available in December.
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MOZAMBIQUE, 2016/04/07
The government of Mozambique has completed restructuring of the deficit taken on to finance Mozambican tuna company Ematum, which was converted from commercial to sovereign deficit held by the national, the government spokesman saidMonday.
Government spokesman and Deputy Health Minister Mouzinho Saide, said next a Cabinet conference that the agreement signed with investment banks Credit Suisse and Russia’s VTB Capital extends the deficit repayment period for two years and reduces the annual all payable.
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CHINA, 2016/03/26
The Export-Import Bank of China (Exim) is considering a request from Mozambique for a loan of US$156 million to accelerate the digital migration process in the country, said the Mozambican Minister for Transport and Communications.
The deadline for migration from analogue to digital in Mozambique, initially set for June 2015, was missed, and the government presently plans to speed up the process, according to minister Carlos Mesquita, cited by Mozambican newspaper O País.
The minister as well said Chinese company StarTimes, which has been awarded the arrangement, approved the disbursement of US$30 million, to be used for an order of specific digital equipment for Mozambique.
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UNITED STATES, 2015/12/31
Over the last 30 years the United States has donated almost US$6 billion to Mozambique, said the outgoing ambassador Douglas Griffiths in a farewell letter.
In the letter, the ambassador said the US wants “nothing but the best” for Mozambique, “because we firmly believe that the success of one country benefits all the others.”
Referring to the all of US$6 billion, Griffiths said this all had not been provided as loans but as donations, particularly for development projects in health, education, agriculture and support to improve the business climate.
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MOZAMBIQUE, 2015/10/31
A staff team from the International Monetary Fund, led by Michel Lazare, visited Mozambique during October 14-28, 2015 to complete discussions towards the completion of the fifth review under the three-year Policy Support Instrument (PSI) approved in June 2013 (see Press Release No. 13/231) and under the 2015 Article IV Consultation, and reach understandings on a new program to be supported under the IMF’s Stand-by Credit Facility (SCF).
The team met with Prime Minister Carlos Agostinho do Rosario, Economy and Finance Minister Adriano Maleiane, Bank of Mozambique Governor Ernesto Gove, and other sectoral ministers, senior government officials, the private sector, civil society, and development partners.
At the conclusion of the visit, Mr. Lazare issued the following statement:
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MOZAMBIQUE, 2015/07/26
Mozambique is expected this year to register an average annual inflation rate “well below” the estimate of 5.1 % from the Mozambican authorities, according to projections from the local branch of Standard Bank in its July economic bulletin, sent to Macauhub in Maputo.
The bank said that the economic impact of the devaluation of the metical against the dollar, leading to a depreciation of around 27 % within one year, would not affect the estimate from the Government of Mozambique.
Commenting on the decision of the Monetary Policy Committee of the Bank of Mozambique to keep benchmark interest rates unchanged, and even before the devaluation of the metical, Standard Bank believes this “shows that the monetary authorities believe inflation remains within the established targets.”
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MAPUTO CITY, 2015/05/20
The Commodities Exchange of Mozambique (BMM) will work in a pilot phase until the end of 2015, launching its activity with a storage capacity of 70,000 tons of agricultural products, the executive director of the institution, Edgar Baloi told us.
The two major goals of the BMM are to improve the gain of farmers and increase the country’s agricultural productivity. The exchange is part of the Mozambican Ministry of Industry and Trade, which plans to duplicate the “successful models” of Malawi and Ethiopia in commodities exchanges.
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MAPUTO CITY, 2014/05/31
The Mozambican government will only set up a Sovereign Fund at the same time as it manages to balance its Budget spending and revenues, the country’s Finance Minister, Manuel Chang said Thursday in Maputo.
On the sidelines of the Africa in Ascension conference, organised by the International Monetary Fund (IMF) and the Mozambican government, Chang told Agence France Press AFP) that “we will not do what others have done,” noting that the country needed the funds it is able to raise to build infrastructure, for example.
