Good afternoon. Two days ago, the agricultural commodity trader ETG filed a request for arbitration against the Mozambican state in the London Commercial Court, having had to endure about two years of interference in its export business from its competitor Royal Group, with help from corrupt members of the customs service, judiciary and police. The only surprise is that ETG has waited so long before taking action.
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Because of this case, it looks like the Mozambican government is likely to have to pay many millions of dollars in compensation (ETG is seeking $120m) because of the actions of a rogue company acting in league with influential figures in ruling party Frelimo as well as public officials. The saga means that Mozambican farmers have been affected by volatile prices for their crops, seasonal port workers have not been paid, and ETG has not been able to pay its staff in Mozambique. Foreign governments’ confidence in Mozambique as an economic and development partner has been damaged.
