Intelligent news from Mozambique

Zitamar Daily Briefing, 7 August 2018

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Welcome to Zitamar’s daily Mozambique briefing for 7 August, 2018.

Agenda

The latest from Zitamar News:

Mozambique president signs deal with Renamo on disarming fighters

Nyusi announced the memorandum on the first anniversary of his historic trip to meet Renamo’s then leader, Afonso Dhlakama, in Gorongosa

Sasol seeks new country head to smooth relations in Mozambique

The job spec says the new country head will “develop and execute specific strategies for management of key stakeholders within Mozambique”

The best of the rest:

  • Energy companies to invest $700 million in the next 8 years
  • Corruption costs state $4.1 million so far this year
  • Construction company fined $17,000 for using illegal foreign contractor

Energy companies to invest $700 million in the next 8 years (O País)

International energy companies will invest at least $700 million in Mozambique in the next eight years in exploration projects, with ExxonMobil’s natural gas exploration project in Angoche, offshore Nampula province, leading the way. Carlos Zacarias, the head of Mozambique’s National Petroleum Institute (INP), said Eni and Sasol will also sign contracts to explore areas in Angoche, where initial seismic surveys have been carried out to find oil and gas.
Today, Mozambique’s Council of Ministers will review the model exploration contract for the fifth round of oil exploration. The first contracts for the blocks, which were awarded in principle in 2015, should be signed in September.

Corruption costs state $4.1 million so far this year (Notícias)

Corruption has cost the Mozambican government about $4.1 million in the first half of 2018 alone, according to Cristóvão Mondlane, spokesman for the Central Office for Combating Corruption. Among the government officials accused of corruption this year are seven mayors, five district administrators, six CEOs, six permanent secretaries, and fifteen heads of state services. Mostly, corruption at this level takes the form of ghost companies created by officials that win tenders from the offices the officials direct.
Mondlane also said his office is still investigating the $900,000 bribe construction company Odebrecht admitted paying to the Armando Guebuza administration to obtain favorable terms for the construction of Nacala airport. The Brazilian authorities are also investigating the terms of the contract to build the Moamba Major dam, under suspicion that Andrade Gutierrez was forced to form a joint venture with the Mozambican partner company, Estradas do Zambeze. Estradas do Zambeze shareholders include prominent individuals from Frelimo – such as former general Raimundo Pachinuapa, Guebuza relative Tobias Dai, and Fernando Sumbana. Work on the dam has stopped because the Mozambican government was not disbursing its part of the funds. The Brazilian part was being financed by Brazil’s state-owned development bank, BNDES – which suffered its first default over the Nacala Airport project.  

Construction company fined $17,000 for using illegal foreign contractor (CanalMoz, AIM)

The Maputo city court has sentenced the construction company 7 Mares to pay over $17,000 in fines for employing a foreigner to direct a project for Engen in Maputo’s Zimpeto neighborhood, after the employee’s work permit expired on 6 January, 2016.
Last week, Mozambique’s private sector trade association complained about excessive bureaucracy involved in hiring foreigners, arguing that the requirements imposed by the government invite corruption and create obstacles to business expansion. This is one of the issues being dealt with in an update of Mozambique’s Labour Law.

© 2018, Alexandre Nhampossa. All rights reserved.

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