Welcome to Zitamar’s daily Mozambique briefing for 22 November, 2017.
The latest from Zitamar News:
Local authorities say they have yet to receive instructions to close down mosques frequented by insurgents
The best of the rest:
Mozambique central bank mulls Moza Banco stake sale (Bloomberg)
Mozambique’s central bank, whose pension fund owns 80% of Moza Banco, is considering the sale of a 20-40% stake after it injects further funds in the bank, anonymous sources have told Bloomberg. The pension fund, Kuhanha, will be the only participant in the rights issue, the people said, as the other shareholders, Novo Banco of Portugal and Moçambique Capitais, won’t exercise their rights in the share sale.
Moza Banco is calling on Kuhanha to put around $46.6m more into the bank to allow it to compete with the biggest players in the Mozambique market, Zitamar revealed last week. If Kuhanha manages to sell a minority stake, questions will probably be asked as to whether the buyer could not have bought Moza outright, instead of the ethically dubious sale to the pension fund of the central bank, which was running the sale.
BCI makes millions from high interest rates and government lending (@Verdade)
BCI saw its profits grow 48% in 2016 to more than 2 billion meticais, thanks to the high interest rates prevalent in Mozambique.
Mozambique’s crisis has had winners as well as losers – with domestic banks stepping in to finance government spending, at very rewarding interest rates. It’s not all good news though – the recession has also led to a spike in non-performing loans at Mozambique’s banks, and they are also heavily invested in the EMATUM, ProIndicus, and MAM loans, which the government is currently not honouring.
Armed police line route of peaceful protest in Quelimane (Jornal Makholo, Twitter)
A cycle ride protest in Quelimane on the anniversary of the still-unsolved murder of a young MDM supporter in 2013 passed off peacefully yesterday despite a heavy armed police presence. The demonstration was led by mayor Manuel de Araujo, whose election 21-year-old musician Man Love was celebrating when he was shot four years ago. Despite video evidence of Love having been shot by a member of the provincial governor’s police guard, no action has been taken by the local courts – and the suspect has been made the personal driver of the head of police for Zambezia province, in “a clear attempt to silence the case”, Araujo said.
Agribusiness in Manica fences in 100 families (O País)
More than 100 families in Gondola, Manica province, have been fenced in by a local large-scale poultry producer, Abílio Antunes – cutting down fruit trees and grazing cattle on land which the company claims it has the rights to. The government claims there is a resettlement village for the locals, but locals say they won’t move until basic conditions in the resettlement village are met.
Mozambique’s Council of Ministers yesterday approved a regulation introducing fishing certificates, which can vary from three to 20 years, allowing the holder the right to fish and to raise finance for fishing. The certificate will now be a prerequisite for getting a fishing licence.
Six parties and one coalition register for Nampula by-election (MediaFax, Notícias)
Party registration closed yesterday for the Nampula by-election on 24 January, with six parties – Frelimo, Renamo, MDM, the Partido Humanitário de Moçambique (Humanitarian Party of Mozambique), the Ecologista – Movimento Terra party (Ecologist – Earth Movement), a Acção Movimento Unido para a Salvação Integral (AMUSI – Action Movement United for Total Salvation), joined by one coalition, called Esperança do Povo (E-Povo, the People’s Hope). The next stage is to present the candidates, who have to be submitted by 7 December. The official electoral campaign will run from 9 to 21 January.
- Wednesday: Vale and Mitsui to sign their $2.7bn project finance package for the Nacala Corridor
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