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WEEKLY MEDIA REVIEW No.

169: 24 FEBRUARY TO 3 MARCH 2017

www.rhula.net

Managing Editor: Nigel Morgan

Renamo leader Afonso Dhlakama (above) announces a further two-month extension to the politico-military truce in Mozambique
(Page 51).

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Pointers:
POLITICS & THE ECONOMY
The government’s timetable to negotiate its preferred option for solving the ‘toxic debt’ problem –
rolling all the debt into one – awaits final delivery of the Kroll audit report (See Rhula Weekly
167 & 168 Pointers and Page 17 below).
The IMF has made it plain that it will not be involved in negotiations between the government and
the debt-holders. The G14 donors will follow the IMF’s lead. The debt-holders are unwilling to
discuss re-structuring until they have seen the Kroll report (now due 31 March). The government
says it will have a ‘concrete debt restructuring’ proposal by the end of March.
Meanwhile, the government is due to make a capital repayment of US$119 million on the
Proindicus debt by 21 March. It is not expected to pay. It missed the first US$59.8 million coupon
payment on the sovereign-backed (Ematum) Eurobond in January. Current Finance Minister
Adriano Maleiane acknowledged, as far back as October 2016, that the government does not
have the resources to meet the $2-billion of sovereign guarantees signed off by his predecessor,
Manuel Chang.
Apart from the international implications of a second sovereign default, Mozambique’s local
financial sector risks being severely tested. It was alleged by Africa Confidential (“Frelimo’s
ostrich plan”, 8 July 2016) that local bondholders include Millennium BIM and Moza Banco (which
is already in administration). There are rumours in financial circles that there may be at least one
other local bank involved. The extent of the exposure of local banks has so far been concealed. A
related risk is that the capital raised by Proindicus was used as collateral for commercial loans, or
for down-payments on contracts for military equipment, thus increasing the risk of yet more
undisclosed debt.
Articles:

Mozambique aims to have debt restructure proposal by end of March (Page 17): Finance
Minister Adriano Maleiane says that the government aims to have a “concreate proposal” for its
creditors by the end of March, which will start negotiations to restructure the country’s commercial
foreign debt. Maleiane says that he “cannot foresee” what will happen. A committee representing
some of the holders of the sovereign bonds says that it will not negotiate with the government
until the Kroll report is published (also end of March). Meanwhile the next payment, for US$119-
million on Proindicus, is due on 21 March 2017. Zitamar News reported in January that if the
payment is missed, it could cause chaos in Mozambique’s domestic banking system due to local
banks having bought portions of the loan when it was syndicated by the arranging bank, Credit
Suisse.

Mozambique to seek partial debt restructuring, says Prime Minister (Pages 17-18): Prime
Minister Carlos Agostinho do Rosário says: “We will negotiate with the creditors to restructure
these debts,” but “in a balanced way”. “We all want the audit completed on time” (referring to the
end-March deadline), “We are awaiting the results, but negotiations with the IMF are under way.”

Economist says that Mozambique’s debt renegotiation is possible (Pages 18-19): Economist
Hipólito Hamela asserts that it still possible to package all the debt, renegotiate it with better
terms and conditions, and make it sustainable. This can be achieved by adapting the time frame
for repayment to projected government income expected from the exploitation of Mozambique’s
natural resources. Hamela says that if the (Kroll) audit concludes that the debt was not legally
contracted, it is essential to find those responsible and hold them accountable, but not punish
them (because) “if there was a sovereign guarantee it is because there was a sovereign goal that
the government allowed this sovereign guarantee and the responsibility is collective”.
IMF directors explain how they lend to countries with unsustainable debt (Page 20):
Following the January default, the major credit rating agencies either lowered their rating of
Mozambique’s sovereign debt, or signalled the economy as evolving negatively. All delivered a
non-investment (‘junk’) rating. Standard & Poor currently calculates Mozambique’s total
indebtedness as circa $11-billion - 137% of GDP. The IMF believes that its regulations forbid
loans to countries with unsustainable public debt, such as Mozambique, unless debt restructuring
takes place and there are credible macro-economic objectives.

IMF, austerity, inequality (Pages 21-23): IMF MD Christine Lagarde’s recent Davos speech
emphasised three factors that will come into play when it comes to resumption of budgetary
support to Mozambique: 1) the demand for increased austerity; 2) accountability for the $2-billion
secret debt; 3) policies that deliver a reduction in poverty and inequality. Alex Segura-Ubiergo,
the former IMF resident representative in Mozambique, warned that “high levels of inequality
hamper government policies to reduce poverty … make it difficult to sustain growth … and can
lead to political instability”. The IMF maintains that: “increasing the income share of the poorest
can boost growth, but raising the income share of the richest can actually harm growth” and that
“Spending on infrastructure reduces inequality”. Agriculture remains a key issue. Farm subsidies
or cash transfers to the rural poor (always opposed by the IMF and donors), actually increase the
incomes of workers, reducing inequality. Donors are going to play a key role because they have
effectively made a return to a normal aid programme conditional on a new IMF programme.
Having put the IMF in charge, donors will now need to keep tabs on the negotiations, to ensure
that in Mozambique the IMF really does “walk the talk” and does not impose an austerity package
that further increases inequality. The WEF measure of ‘wastefulness of government spending’
finds that for Mozambique: “although corruption is a problem, government spending is relatively
efficient”. Good point made regarding hypocrisy, ‘leadership standards” and the IMF: the current
and two previous managing directors of the IMF have been involved in scandals that seriously
question the organisation’s own leadership standards.

OAM demands punishment over “hidden debts” (Pages 23-24): The Chairman of the
Mozambique Bar Association, Flavio Menete, calls for exemplary punishment for those found
guilty of crimes related to the secret debts, which have increased the country’s debt burden by
20%. “Since there was no transparency in the entire process, including knowledge of how the
money was used”, he said, “one can only think of the possibility that it was corrupt.” Menete also
attacked the recent award of a country’s relief agency (INGC) contract , without public tender, to a
company linked to Transport Minister Carlos Mesquita; not the first time he has been in a conflict
of interests in public office.

Mozambique officials say truce is boosting the economy (Page 24): CTA cites tourism, trade
and transport as beneficiaries. In January, for example, the number of passenger buses leaving
from Maputo to provincial capitals increased by 74%.

Mozambican private sector not in a position to raise salaries (Page 25): CTA warns “Wages
based on the macro-economic data presented would be unsustainable. Companies would close,
and operators who tried to work would be confronted every day with strikes for non-payment of
wages”.

Unions suggest two wage rises in 2017 (Pages 25-26): The OTM calls for the minimum wage
to be increased twice this year rather than once. Workers’ living standards tumbled last year due
to the “politico-military instability, natural disasters, a financial crisis, depreciation of the metical
and unsustainable foreign debts”. The CPI for the three largest cities (Maputo, Nampula and
Beira), indicates that inflation for the year reached 25.27%. “These factors have raised the cost of
living to unbearable levels, and worsened the poverty of the majority of Mozambicans”.
CONSILMO calls for privitisation – in order to return EdM, LAM and PETRMOC to profitability
(Page 28).

BUSINESS:

Financial Services:

Moza Banco says recapitalisation proceeding within expectations (Pages 29-30): Rebuttal of
unfavourable comment on its stability. At the end of January, the General Shareholders’ Meeting
of Moza Banco, owned by Portugal’s Novo Banco, approved a capital increase of MT8.17-billion
(€107.7-million) after the Banco de Moçambique injected around MT8-billion (€105-million) into
Moza in December to halt its collapse and avoid an “earthquake” in the Mozambican financial
system. Moza has more than 93,000 private and 8,000 commercial customers and a 7.71%
share. It is the fourth largest Mozambican bank, with 48 branches across the country.

Société Générale pledges expansion in Mozambique (Page 31): SG is hoping to achieve a


market share of 10%. It entered the market by becoming the majority shareholder in what was
formerly the Mozambican branch of the Mauritius Commercial Bank (MCB). Its priority is on
corporate banking, in areas such as oil and gas. It has become the financial advisor to Anadarko
(Rovuma Basin Area 1).

Oil & Gas:

Companies seek US support for hydrocarbon exploration (Page 32): Report on a meeting (28
February), organised by the commercial services of the US Embassy in partnership with the CTA,
looking at the opportunities and challenges and the role of the companies (state and private) in
the logistics sector. “With extensive experience in oil and gas exploration, we plan to bring United
States experts to help Mozambique cement its involvement in the entire process of exploring
these resources.” US presence is currently represented by Anardarko (Rovuma Basin Area 1),
but ExxonMobil is preparing to explore sectors of Area 4 (ENI consortium).

ENI close to finalising deal to sell stake in Mozambique gasfield (Pages 32-34): ENI says it is
“within weeks” of sealing a multibillion-dollar deal to sell a stake in its Mozambique operations.
ExxonMobil, which already has exploration licenses in Mozambique, is seen as the most likely
candidate. According to the FT, bankers and industry figures say it would be a big surprise if it is
not ExxonMobil (who decline to comment). ENI’s stake sale is expected to be followed later this
year by the final go-ahead for its multibillion-dollar Coral South field – the first part of the Area-4
block due for development. BP last year agreed a 20-year deal with ENI to buy the entire output
from Coral South. ENI holds a 50% stake in the Area-4 block; he other half is owned by CNPC of
China, Galp Energia of Portugal, KOGAS of South Korea and Mozambique’s ENH. An industry
analyst estimates that the sale of a 20% stake in Area-4 would raise €1.7-billion in cash for ENI,
with the potential for this to rise to as much as €2.5-billion should the Italian group eventually
hand over operational control to the buyer.

Sasol says Mozambique drilling campaign showing ‘promising results’ as it scales back
capex as rand strengthens, H1 earnings fall (Pages 34-35): Sasol says that it is scaling back
planned capital expenditure this year in the face of a strengthening rand as it posted a fall in
interim earnings partly rooted in the currency’s gains. In Mozambique, the company says that it
has completed four wells, as part of its drilling campaign, which are “showing promising results.”

Sasol says relations with Mozambique in “good space” - Reuters (Pages 35-36): Sasol’s
senior management describes the group’s relations with the Mozambique government as being in
a “good space”, despite the country’s current fiscal difficulties, as well as periodic criticism that
the country is not benefiting fully from Sasol’s investment activities.
Sasol says that all the feedback from the government is very supportive and Sasol is supporting
the Mozambican authorities in their efforts to navigate their way through the prevailing financial
challenges. Since 2004, more than US$2-billion has been invested by Sasol in developing gas
fields, as well as the gas pipeline to South Africa, which was recently expanded through a project
known as Loop Line-2. From 2004 to 2016, more than US$1-billion was delivered to government
in taxes, royalties and social investments, as well as through profit sharing and dividends paid to
state-owned entities. Further, goods and services worth US$831-million were procured from
Mozambican suppliers. Sasol says it is also pushing ahead with a US$1.4-billion investment
programme in support of the PSA granted in early 2016.

Mozambique’s INP denies any new oil discovery in Inhambane (Pages 36-37): INP denies
claims, apparently made on Monday 27 February, that there has been any new oil discovery in
the province of Inhambane. INP says five new production wells have been drilled in the area
covered by Sasol’s production sharing contract, three in Temane containing gas, and two in
Inhassoro, containing oil. The new discoveries, including T-27, were promptly notified to the
Mozambican authorities in August and September last year. Since then, the INP adds, no other
discovery has been notified. Hence references to petroleum production can only refer to the
Inhassoro light oil project, which was approved in January 2016. The INP acknowledges that it
may be due to a mistake in reporting:

 In Mozambique, the company said it has completed four wells as part of its drilling four
wells (out of a planned 12) as part of its drilling campaign which are “showing promising
results” (Reuters article on Pages 34-35).
 The JSE-listed company drilled four gas and oil wells – two in Temane and two in
Inhassoro – during the six months to 31 December 2016, and subsequently issued a
notice of discovery after finding oil (together with gas) while drilling for gas in the Temane
permit area (Mining Weekly article on Pages 35-36)

Rosneft expects to make concession agreements on Mozambique offshore areas (Page


37): RN-Exploration (a subsidiary of Rosneft) and ExxonMobil’s affiliate in Mozambique were
recognised winners of the tender for three areas organised by Mozambique’s INP. Work was
planned to start in the third or fourth quarter of 2016, but no agreement with the government of
Mozambique has been signed so far. Rosneft says that they expect negotiations to be complete
by Mid-2017.

Fuel companies demand change in subsidy system (Pages 37-38) The Mozambican
Association of Fuel Companies (Amepetrol) warns PM that the country risks running out of petrol
and diesel, if the government does not change its current fuel subsidy system. They say that they
can no longer go on shouldering the difference between the price which they pay for fuel on the
international market (denominated in US dollars), and the price in meticais at Mozambican filling
stations, which is fixed by the government. The government is supposed to compensate the
companies for this difference, but they claim this subsidy system is not working properly because
of the government’s lengthy delays in paying, which creates cash flow problems. Losses
accumulated since June 2016 are around US$70-million. Unless the current subsidy system is
changed, Mozambican fuel distribution could simply collapse.

Mining:

Vale Moçambique ends 2016 with a loss of US$105-million (Page 38): a figure which
compares with a loss of US$508-million in 2015. The improvement was mainly due to the
reduction of costs and expenses (US$344-million) and an increase in market prices, which
increased the company’s turnover by US$140-million. Coal exported by rail from Moatize for
loading at the port of Nacala provided revenue of US$110-million.
Coal transported along the Sena line for loading at the port of Beira posted a loss of US$215-
million. Coal transported along the Sena and Nacala lines totalled 8.8-million tons in 2016, more
than double the 4.1-million tons carried in 2015. The coal shipped at ports totalled 8.7-million
tons, also more than double the 3.7-million tons recorded in 2015.

Cheap Mozambican coal leading to shutdown of Malawi’s mines (Page 39): The import of
cheap Mozambican coal into Malawi has choked the local market and led to the shutdown of
more than three quarters of Malawi’s mines, as production at Moatize ramps up.

Chinese investment in coking coal (Page 39): China’s CBSteel says that it will set up an
industry to transform the thermal coal extracted from mines in Tete Province into coking coal. The
plant, budgeted at around US$1.3-billion, will be established, not in Tete, but in the northern
province of Nampula, along the transport corridor leading to the port of Nacala. The planned
production capacity for the plant is expected to be four-million tons of coking coal a year, and
construction work is due to begin in the second half of this year and take about a year, directly
creating 1,500 jobs. CBSteel envisages “a major industrial zone” springing up around the factory,
with the potential to create many more jobs.

Mustang Resources Ltd. acquires highly prospective adjacent ruby license next to
Gemfields (Page 40-44): 65% interest in 3,500 hectare concession next to its existing
Montepuez Ruby Project and a key secondary deposit being mined by London-listed Gemfields.

Energy:

Mozambique can be self-sufficient in electricity by 2021 (Page 45).

POLITICS & SECURITY

There is increasing optimism that a workable peace settlement between Renamo and Frelimo
can be reached.

Bilateral negotiations continue between two slimmed down working groups, appointed directly by
President Filipe Nyusi and Renamo leader Alfonso Dhlakama. One is focussed on
decentralisation and the other military issues.

The key issues remain:

 Constitutional change that will enable the winning party in provincial assembly elections to
nominate the provincial governor;
 Disarming, demobilisation and integration of Renamo militias;
 Equitable sharing of key posts in the military, police and other government-controlled
institutions.

Behind the scenes, an aspect of negotiations that is likely to prove sticky is a possible Renamo
demand for some form of financial settlement ‘to ease things along’.

Why peace now looks possible?

Apart from there being ‘no-winners’ from the military conflict that has plagued the country from
April 2015 to the 27 December 2016 ceasefire, each side recognises that economic situation in
Mozambique is so dire that it is in their mutual interest to reach an agreement.

It is a positive sign that the ceasefire has been again been extended, this time to 4 May. While
the ceasefire has been in force there has been an absence of major violations.
In the conflict regions in central Mozambique, activities and the movement of people and goods
are slowly getting back to normal (See Pages 24 & 57).

In the central provinces, Renamo is urging internally displaced people to return to their homes
and get on with their lives (Page 65).

In parallel, Renamo is resuming its activities as a political party. It has begun the process of
reorganising its party machine, with an eye to the municipal (October 2018) and national elections
(November 2019).

Considerable diplomatic ‘encouragement’ is being applied, internationally and regionally, to


achieve a successful outcome to the peace talks. Note the inclusion of heavy-weight
ambassadors in the so-called ‘Contact Group’, chaired by the Swiss ambassador (currently
Adrian Hadorn), and co-chaired by the American ambassador (Dean Pittman). The other five
members of the group are the Ambassadors of China, the European Union and Norway, and the
High Commissioners of Botswana and of the United Kingdom (Pages 52-53).

It is likely that, even if the government negotiates a solution to the toxic debt problem, resumption
of IMF and G14 funding would also be contingent on a peaceful settlement between Frelimo and
Renamo, as major foreign investment is being lost by the current political uncertainty.

The timetable for a settlement is strongly influenced by President Nyusi’s determination to


present a successful outcome to both the peace negotiations, and the problem of ‘toxic debt’, to
the Frelimo Party Congress in September 2017. The Congress is a vital stepping-stone on
Nyusi’s route to consolidating power in the party. He is up for re-election to the presidency of the
party at the Congress (Pages 45 & 55). The Congress will also select the Frelimo Executive
Committee, due to convene 1 March 2018, which in turn will select the Frelimo candidate for the
Presidential election in November 2019.

Articles:

Afonso Dhlakama announces extension of the truce for another two months (Page 51):
Dhlakama says that permanent contact exists between himself and President Filipe Nyusi, and he
is confident that the peace process is well underway. He hopes that the next 60 days would see
“serious negotiations” that should result in a legislative proposal to parliament over the
decentralisation of state administration.

Renamo demands approval of decentralisation this quarter (Page 51): Insistence on


approval of decentralisation measures and the resolution of pending military issues this quarter.
Renamo says that the decentralisation package will allow for the appointment of Renamo
governors in provinces where the party won the most votes in the 2014 elections, while military
issues include the integration of Renamo men into the government Defence and Security Forces.
The current session of the Assembly of the Republic ends in early May.

President Nyusi appoints ‘Contact Group’ for peace talks (Pages 52-53): A run-down of the
composition of the slimmed-down negotiating teams (“Working Groups”) on both sides, and also
the Contact Group, which is there to “provide co-ordinated financial and technical assistance, and
carry out other tasks as indicated in their terms of reference”. Members of the contact group will
advise but not act as mediators.

“President Nyusi is leading a peace process with transparency” (Pages 55-56): Suggestion
that by inviting ambassadors to play the role of observers in the peace negotiations with Renamo,
the President has proven that he has no intentions of bad faith against Renamo leader Afonso
Dhlakama.
President Nyusi calls on Mozambicans to maintain the truce (Page 56).

Renamo promises its armed wing will maintain truce with Mozambican Armed Forces
(Page 64).

Thousands returning home confident of end to conflict (Pages 65-66).

National Assembly: all parties call for “effective peace” in a rare display of cross-party
unanimity (Pages 57-58). Ivone Soares, leader of the Renamo parliamentary party (and nice of
Dhlakama) claimed that the truce was Dhlakama’s initiative, and that she now expected it to
become “definitive”. She did not mention the longstanding Renamo demand that it has the right to
rule the provinces where it secured a majority of votes in the 2014 general elections. This is a
shift away from Dhlakama’s earlier position that Renamo would simply appoint governors and
other officials in the provinces it claims. A completely new demand raised by Soares is for a
“provincial police force”. The existing force, the Mozambique Republic Police (PRM), would retain
responsibility “for the most serious crimes”, while other policing matters would pass into the
hands of the provincial forces. Soares wants the National Assembly to pass legislation on
decentralisation and on the defence and security forces in this first quarter of the year – which
gives the deputies slightly more than a month to reach consensus on a range of complex issues.
Consensus is needed, because changing the way in which the provinces are governed will
require amending the constitution. Constitutional amendments require a two thirds majority in the
Assembly, which no party can obtain on its own. The fifth parliamentary session runs until 11
May.

“Sing from the same page”, President Nyusi urges Frelimo deputies (Pages 59-60):
speaking at a meeting between Frelimo parliamentarians, members of the Party’s Political
Commission and government members, Nyusi stressed the need for stability – both political
stability, in terms of securing a definitive peace, and macro- economic stability, including
stabilising inflation.

Action needed this month on elections (Page 61): Municipal Elections are due in the first two
weeks of October 2018, and the specific date must be set by the Council of Ministers 18 months
in advance – effectively by the end of March 2017.

CRIME:

Missing Portuguese businessman kidnapped in Mozambique: Interior Minister goes to


Lisbon (Page 68).

Police should reflect on how to prevent violent crime – President Nyusi (Pages 68-69)
followed by a series articles on mixed performance of police units. (Pages 69-73).
TABLE OF CONTENTS

Click on a title to follow the link to the related article. To return to the Contents Page, click on the link
at the top-right hand corner of the page.

BUSINESS INDEX ........................................................................................................ 14

ECONOMY & BUSINESS ............................................................................................. 16


GRAPH 1: MOZAMBIQUE CURRENCY EVALUATION......................................... 16

Macro-economy: ...................................................................................................... 17
Mozambique aims to have debt restructure proposal by end of March – report......... 17
Mozambique to seek partial debt restructuring, says Prime Minister ......................... 17
Economist says that Mozambique’s debt renegotiation is possible ............................ 18
IMF directors explain how they can lend to countries with unsustainable debt .......... 20
IMF, austerity, inequality ............................................................................................ 21
OAM demands punishment over “hidden debts” ........................................................ 23
Mozambican officials say truce is boosting economy ................................................. 24
Mozambican private sector not in a position to raise salaries .................................... 25
Unions suggest two wage rises in 2017 ..................................................................... 25
Mozambique Stock Exchange still lacks a single listed SME ..................................... 26
Tax incentives raise doubts in Mozambique .............................................................. 27
CONSILMO asks government to readjust contracts with contractors/privatise EdM,
LAM, Petromoc .......................................................................................................... 28
Young Mozambicans disappointed with employment policy ...................................... 28

Financial Services:................................................................................................... 29
Banco de Moçambique slams illegalities in the issuance of guarantees by
microfinance operators............................................................................................... 29
Banco Moza says recapitalisation proceeding within expectations ............................ 29
Société Générale pledges expansion in Mozambique ............................................... 31

Oil & Gas:.................................................................................................................. 32


Companies seek US support for hydrocarbon exploration ......................................... 32
ENI close to finalising deal to sell stake in Mozambique gasfield ............................... 32
Sasol says Mozambique drilling campaign showing ‘promising results’ as it scales
back capex as rand strengthens, H1 earnings fall ..................................................... 34
Sasol says relations with Mozambique in “good space” ............................................. 35
Mozambique’s INP denies any new oil discovery in Inhambane ................................ 36
Rosneft expects to make concession agreements on Mozambique offshore areas... 37
Fuel companies demand change in subsidy system .................................................. 37

Mining: ...................................................................................................................... 38
Vale Moçambique ends 2016 with a loss of US$105-million ...................................... 38
Cheap Mozambican coal leading to shutdown of Malawi’s mines .............................. 39
Chinese investment in coking coal ............................................................................. 39
Mustang Resources Ltd. acquires highly prospective adjacent ruby license next to
Gemfields ................................................................................................................... 40
Mozambican experts condemn gaps in studies on environmental impacts of projects
................................................................................................................................... 44

Energy:...................................................................................................................... 45
Mozambique can be self-sufficient in electricity by 2021............................................ 45
Mavuzi and Chicamba power stations: US$120-million rehabilitation complete ......... 45

Transport, Construction & Development Projects: ............................................... 46


Gravel theft endangers railway in northern Mozambique ........................................... 46
Maputo-Catembe crossing: ferry-boat Bagamoyo breaks down again ....................... 46
ETM reduces number of buses .................................................................................. 47

Agriculture & Fishing: ............................................................................................. 47


Mozambique to export avocados to Europe ............................................................... 47
President Nyusi visits Tete poultry producer .............................................................. 47

Tourism:.................................................................................................................... 48
“Do not turn Culture and Tourism into the government’s burden” – President Nyusi . 48

Other: ........................................................................................................................ 49
President Nyusi inaugurates largest shopping centre in Tete .................................... 49
Labour Inspectorate suspends 13 foreign workers .................................................... 50

POLITICS...................................................................................................................... 51
Afonso Dhlakama announces extension of the truce for another two months............ 51
Renamo demands approval of decentralisation this quarter ...................................... 51
President Nyusi appoints ‘Contact Group’ for peace talks ......................................... 52
On the right path to peace, says Prime Minister ........................................................ 53
President Nyusi urges “understanding and humility” .................................................. 54
“President Nyusi is leading a peace process with transparency” – Sibindy................ 55
President Nyusi calls on Mozambicans to maintain vigilance in observing the truce . 56
President Nyusi calls for the preservation of peace in Lent........................................ 56
Assembly: all parties call for “effective peace” in Mozambique .................................. 57
Mozambican parliament places peace agreement on agenda ................................... 58
Sing from the same page, President Nyusi urges Frelimo deputies ........................... 59
Mulembue claims President Nyusi will be Frelimo candidate in 2019 ........................ 60
Frelimo general secretary denies Mulembue ............................................................. 61
Action needed this month on elections ...................................................................... 61
Renamo youth march marks opening of political year ............................................... 62
President Nyusi criticises negligence at Youth and Sports Ministry ........................... 62
Domestic violence high on the agenda ...................................................................... 63
Vitória Diogo joins AfDB panel on youth employment ................................................ 63

SECURITY .................................................................................................................... 64
Renamo promises its armed wing will maintain truce with Mozambican Armed Forces
................................................................................................................................... 64
‘Secretário de círculo’ and wife of Funhalouro community leader murdered .............. 64
Thousands returning home confident of end to conflict .............................................. 65
Zimbabwe safe from Renamo – Army ........................................................................ 66
CRIME........................................................................................................................... 67
GRAPH 2: Province by Month ................................................................................ 67
GRAPH 3: Injuries/Fatalities by Month ................................................................... 67
Missing Portuguese businessman kidnapped in Mozambique: Interior Minister goes to
Lisbon ........................................................................................................................ 68
Police should reflect on how to prevent violent crime – President Nyusi.................... 68
Mozambique denies police abuse in ruby deportations.............................................. 69
Five policemen accused of involvement in fuel theft .................................................. 69
Five Mozambican policemen were detained on the morning of Monday 27 February,
accused of facilitating a criminal scheme to steal 10,000 litres of diesel at the Lingamo
fuel terminal in the southern city of Matola, according to a report in Thursday’s issue
of the O País .............................................................................................................. 69
PRM recovers 20 tons of stolen wheat on a train in Manica ...................................... 70
Police neutralise fuel theft gang in Beira Port ............................................................ 71
Top law officials denounce prison overcrowding ........................................................ 72
Josina Machel case raises question over compensation ........................................... 73
ZAR8-million gold bar bust at OR Tambo: “Passenger in transit from Maputo to Dubai”
................................................................................................................................... 74
Man arrested in Marracuene for possession of an illegal weapon ............................. 74
Thirty-six illegal Ethiopian immigrants arrested in Meconta thanks to tip-off .............. 75
Murder-suicide in Tete Province ................................................................................ 75
Government officials arrested for falsifying documents in Zambézia ......................... 75

HUMAN RIGHTS, SOCIAL DEVELOPMENT AND NGO’S ......................................... 76


Pequenos Libombos: authorities investigate fire at Maputo water supply dam .......... 76
Pequenos Libombos floodgates close ....................................................................... 76
Flooded out in Beira: a month’s rainfall in just two days............................................. 77
Three children drown in Beira floods .......................................................................... 78
Houses in Xai-Xai city flooded ................................................................................... 79
Five die as river bursts its banks ................................................................................ 79
Warnings of possible storms in Mozambique ............................................................. 79
Approximately 550,000 people affected by cyclone Dineo ......................................... 80
World Food Programme pledges to help 50,000 victims of cyclone Dineo ................ 80
Tents serving as makeshift schools in Inhambane and Gaza .................................... 81
Mozambican religious leaders repudiate use of girls to repay debts .......................... 81
Thirty schools reopen in Morrumbala ......................................................................... 82
House of Mozambican citizen burned down in Pretoria in xenophobic attack ............ 82

HEALTH........................................................................................................................ 83
Maputo: cholera situation report as of 23 February .................................................... 83
Mozambique has 13 psychiatrists for 150,000 seeking mental health services ......... 85
New health centre for Zimpeto ................................................................................... 86
Swedish support for safe abortion and contraception ................................................ 86
INAE closes 20 establishments, mainly over hygiene ................................................ 87
Inspectors close well known Maputo restaurant after finding ‘a range of threats to
public health’ .............................................................................................................. 88

WILDLIFE AND ENVIRONMENTAL PROTECTION .................................................... 89


Government launches ‘Operation Tronco’ in six provinces ........................................ 89
Mozambique is the first country to add areas to Great Limpopo Transfrontier Park .. 89
Rhino horns handed over to BMB .............................................................................. 91
Mozambique in need for law that punishes buyers and traffickers of illegal wildlife
products ..................................................................................................................... 92
Over 600 poachers and traffickers arrested in South Africa ....................................... 93
Lies, damned lies and rhino statistics ........................................................................ 95
Rhino sale bombshell hidden in new draft regulations ............................................... 97
Something’s not right in the DEA ............................................................................... 99
What drives the demand for rhino horns? ................................................................ 101
BUSINESS INDEX
AdeM ............................................................................................................................. 74
AfDB .............................................................................................................................. 58
Anadarko ................................................................................................................. 25, 26
Aviario Paula ........................................................................................................... 41, 42
Banco de Moçambique............................................................................................ 23, 24
Bankia ........................................................................................................................... 16
BP ................................................................................................................................. 27
CBSteel ................................................................................................................... 33, 34
CFM .............................................................................................................................. 70
Chistevas Import and Export ......................................................................................... 86
CNPC ............................................................................................................................ 27
Corredor de Desenvolvimento do Norte ........................................................................ 40
Credit Suisse ........................................................................................................... 11, 16
EdM ......................................................................................................................... 22, 39
ENH............................................................................................................................... 27
ENI .............................................................................................................. 26, 27, 28, 31
ETM............................................................................................................................... 41
ExxonMobil .............................................................................................................. 26, 31
Galp............................................................................................................................... 27
Gemfields .......................................................................................................... 34, 35, 36
Goldman Sachs ............................................................................................................. 28
IMF ................................................................................ 11, 12, 13, 14, 15, 16, 29, 47, 48
Jindal ............................................................................................................................. 33
KOGAS ......................................................................................................................... 27
Kroll ................................................................................................................... 11, 16, 48
LAM ............................................................................................................................... 22
Lazard Frères ................................................................................................................ 11
MAM ...................................................................................................... 10, 12, 16, 47, 48
MCB .............................................................................................................................. 25
McCormick Property Development ................................................................................ 43
Mesquita Group ....................................................................................................... 17, 48
Millennium-BIM ............................................................................................................. 47
Moza Banco .................................................................................................................. 24
Mustang Resources ................................................................................................ 34, 36
Novo Banco................................................................................................................... 24
PETROMOC ................................................................................................................. 22
Proindicus ....................................................................................... 10, 11, 12, 16, 47, 48
Regius Resources Group Ltd. ....................................................................................... 36
RN-Exploration .............................................................................................................. 31
Rosneft .................................................................................................................... 27, 31
Sasol ................................................................................................................. 28, 29, 30
SLR Mining Lda ............................................................................................................. 37
Société Générale .................................................................................................... 24, 25
Standard & Poor’s ......................................................................................................... 14
TCM ........................................................................................................................ 17, 48
Transmarítima ............................................................................................................... 40
Vale ......................................................................................................................... 32, 33
VTB ............................................................................................................................... 16
Westfalia Fruto Moçambique ......................................................................................... 41
White & Case ................................................................................................................ 11
World Bank.............................................................................................................. 12, 39
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ECONOMY & BUSINESS

Mozambique Exchange Rate and Fuel Prices: 3 March 2017

Mozambique Metical (MZN) Exchange Rate Mozambique Fuel Prices


Currency Buy Sell Fuel Type Price Per Litre
Euro (EUR) 73,38 73,48 Petrol 50.02MT
U.S. Dollar (USD) 69,78 69,88 Diesel 45.83MT
S.A. Rand (ZAR) 5,33 5,33

GRAPH 1: MOZAMBIQUE CURRENCY EVALUATION

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Macro-economy: In an interview following the opening of


the first session of parliament for 2017,
Mozambique aims to have debt Minister Maleiane told O País that he
restructure proposal by end of March – “cannot foresee” what will happen, but
report said: “What we have to do is make an
effort to conclude negotiations with the
Mozambique is aiming to have a advisors by March, so by then we can
“concreate proposal” for its creditors by have a concrete proposal to be able to
the end of March to start negotiations to bring Mozambique’s debt to sustainable
restructure the country’s commercial levels”. Minister Maleiane added that he
foreign debt, Finance Minister Adriano also wants “to have this debt framed
Maleiane told O País on Monday 27 within the programme that we have for the
February. 2017 budget”. The Minister was
scheduled to address a press conference
Mozambique is currently in arrears on the on Wednesday 1 March, regarding the
three financing facilities – its US$767- 2017 budget and spending plans.
million sovereign Eurobond, having
defaulted on a US$59.8-million payment A committee representing some of the
in January; a US$535-million guaranteed holders of the sovereign bonds has said it
loan taken out by maritime security will not negotiate with the government
company Mozambique Asset until the results of an independent audit
Management (MAM), which it failed to pay into the three deals, being carried out by
in May 2016; and a US$622-million investigations company Kroll, is
guaranteed loan taken out by another published. The report was initially due to
maritime security company, Proindicus, be published by the end of February, but
having failed to honour one of the the deadline has now been pushed back
creditors’ demands for early payment to 31 March. Mozambique’s Ministry of
following a ratings downgrade in 2016. Finance is advised by investment bank
Lazard Frères and by law firm White &
Mozambique first asked its creditors to Case.
consider restructuring all three facilities in
October 2016, aiming to conclude the Source: Zitamar News
restructure by the time the January
payment on the sovereign bond was due Mozambique to seek partial debt
– a deadline which has now passed. restructuring, says Prime Minister

The next payment is for US$119-million On Wednesday 1 March, Prime Minister


on Proindicus, due on 21 March 2017. Carlos Agostinho do Rosário announced
Zitamar News reported in January that if that Mozambique will seek to negotiate a
the payment is missed, it could cause restructuring of part of its debt. The
chaos in Mozambique’s domestic banking southern African nation is struggling to
system due to local banks having bought repay loans of more than US$2-billion that
portions of the loan when it was were not approved by parliament or
syndicated by the arranging bank, Credit disclosed publicly. “We will negotiate with
Suisse. the creditors to restructure these debts,”
said Prime Minister Rosário, adding that
the nation wants to honour its debts “in a

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balanced way”. With aid by the IMF negotiations with donors on a concrete
suspended in the wake of the unapproved proposal for bringing Mozambique’s
loans, Mozambique’s government last global debt down to sustainable levels.
year said its debt was unsustainable.
Prime Minister Rosário also said he Renegotiation of debt is possible:
expected Mozambique would reach its
economic growth target of 5.5% this year. In an interview with Deutsche Welle
Africa, economist Hipólito Hamela said
The nation’s foreign currency reserves that, in his opinion, it is still possible to
have increased and is now sufficient to reach an agreement on debt renegotiation
cover five months of imports, Prime so as to adapt it to the timeframe in which
Minister Rosário said. In November the the country will start to receive benefits
country appointed risk management firm from natural resources exploitation, which
Kroll to probe the state firms that hid the is due to start soon.
loans from government and international
creditors. “We all want the audit According to Hamela, given the tight
completed on time”, said Prime Minister deadlines, the government’s option to
Rosário referring to the end-March “package all the debt, renegotiate it with
deadline. “We are awaiting the results, but better terms and conditions and make it
negotiations with the IMF are under way”. sustainable” is “perfectly possible”.

Source: Reuters Should the Mozambican government not


be able to complete the debt renegotiation
Economist says that Mozambique’s or pay the instalment due in March, the
debt renegotiation is possible country will register a second default, after
having failed to repay debt interest in
Economist Hipólito Hamela says that the January.
Mozambican government cannot pay its
debts right now. If an international audit, For Hamela, the country does not have
which is still ongoing, concludes that many more alternatives. “We only have
“there is a debt not legally contracted”, this March window to do this renegotiation
those “responsible will have to be found” and come away ‘clean’. It is never good
and held responsible, he says. not to pay, but to come away clean from
the point of view of our country’s
There is one month to go before international image”, he says.
Mozambique has to pay one of the
instalments of the state-guaranteed debt Debt not repayable at present:
contracted in favour of the companies
Ematum, Proindicus and MAM. Hamela says that Mozambique is not in a
position to repay its debt at this time and
Minister of Economy and Finance, has a dilemma on its hands, given that it
Adriano Maleiane, acknowledged this on “may have money to pay”, but that this
Monday 27 February, stating, however, “would mean sacrificing many other
that it is not yet possible to foresee the things”.
outcome of the case. He said the
executive is making an “effort” to ensure
that by March it will have concluded

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“It’s like a father who owes money to the International partners have been
bank. If he pays the debt it’s taking 70% subjecting the resumption of direct aid to
or 80% of his salary, which means there’s the Mozambican State Budget to
no food at home. He thinks that he either conditions including the presentation of
renegotiates the debt to the bank or else the conclusions of the international audit
he pays and there is no food in the house. into the so-called hidden debts due in
Most probably, a responsible parent will March. The total amount owed is US$11-
renegotiate with the bank. The bank will billion.
have to accept conditions so that the debt
can be repaid and the children kept alive”, Hamela says that if the audit concludes
Hamela explains. that the debt was not legally contracted, it
will be necessary to find those responsible
In reaffirming this possibility of debt and hold them accountable, but not
renegotiation, the economist highlights the punish them. But “if there was a sovereign
fact that, in the short-term, gas exploration guarantee it is because there was a
projects in the Rovuma Basin will start sovereign goal that the government
and eventually oil projects, with medium allowed this sovereign guarantee and the
to long-term gains in prospect. And only responsibility is collective”, he says.
after successfully completing
renegotiations can Mozambique re- A number of voices are, however,
establish the previous friendly relationship supporting the individual accountability of
with the World Bank, the IMF and donors. those involved.

Find those responsible: Source: Deutsche Welle

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IMF directors explain how they can The government then argued that it was
lend to countries with unsustainable not able to make this and the other
debt payments expected for this year, in an
initiative that the holders of these bonds
The IMF believes that its regulations considered to be a move to force them to
forbid loans to countries with restructure the Eurobonds.
unsustainable public debt, such as
Mozambique, unless debt restructuring Following this default, the credit rating
takes place and there are credible macro- agencies either lowered their rating of
economic objectives. Mozambique’s sovereign debt or signalled
the economy as evolving negatively. All
An article on the IMF’s ‘Global Policy gave Mozambican debt non-investment
Forum’ website by the director of the legal recommendation, commonly known as
department, the director of research and ‘junk’.
the director of the IMF’s European
department explains the Fund’s approach “Although considerable work has been
to the issue of unsustainable debt which done to establish a methodology to guide
renders countries ineligible for relief. the IMF’s debt sustainability analysis, the
application of this methodology still
“When sovereign debt is unsustainable, requires the exercise of judgement”, the
the IMF’s legal framework precludes it article reads, namely the need to make a
from providing financial support unless the “a realistic assessment of the unique
programme includes specific measures – circumstances of each member country”.
normally including a debt restructuring –
that credibly address the debt With a public debt estimates by rating
sustainability problem within the medium- agency Standard & Poor’s to be currently
term”, the article by Sean Hagan, Maurice at 137% of gross domestic product (GDP)
Obstfeld and Poul M. Thomsen explains. and expected to remain close to 120% by
2020, Mozambique is one of the countries
Without specifically mentioning facing the difficulty of needing IMF
Mozambique, one of the countries facing financial support and at the same time
this issue, the article explains that the having to convince holders of sovereign
concept of “unsustainable” essentially debt to accept payment restructuring.
applies when “scheduled debt service
exceeds the capacity of the member to Creditors say that the country must reach
service it, even taking into account both a an agreement with the IMF first, to ensure
strong adjustment programme and compliance with adjustment programme
significant financial support from the IMF”. budgetary targets and follow-ups, while
the IMF, in the latest public statements
In January, Mozambique failed to pay a and in this article now published, prefers
provision of nearly US$60-million on debt restructuring to take place before the
US$727.5-million of sovereign debt issued implementation of any support
in April last year, which had already been programme.
subject to restructuring which extended
the repayment term from 2020 to 2023 On the methodology for assessing debt
and increased the annual interest rate. sustainability, the article authors explain
that they use two models. “The first

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methodology asks if, by the end of the inequality reduces economic growth, most
IMF programme and with debt serviced on recently speaking at Davos in January.
the original terms, debt ratios to GDP will This triggered articles such as The IMF is
be sufficiently low or on a clear enough Showing Some Hypocrisy on Inequality by
downward path to restore lender Christopher Sheil and Frank Stilwell, who
confidence and allow the government argue that “IMF leaders should practise
once again to tap financial markets”. what they preach when it comes to
inequality”. One response is an IMF blog
The second, “which is especially relevant by Prakash Loungani and Jonathan D.
when debt has a long maturity and Ostry, entitled appropriately Bridging
particularly low interest rates, is to ask Research and Reality.
whether the country’s annual financing
needs – to cover gross payments of Mozambique’s new programme will be
interest and principal as well as its one of the first since Lagarde’s most
primary fiscal balance – can reasonably recent Davos speech. Three factors will
be met by the markets going forward”. come into play. First the IMF will demand
increased austerity. Second the IMF will
In both cases, say the authors of the want to at least slap the wrists of
article, projections on payments have to Mozambique for being a bad child by
be realistic and should improve debt keeping the US$2-billion debt secret. But,
sustainability over the years, “rather than third, inequality in Mozambique doubled in
levels that would disrupt the economy so the past six years, and a year ago the
severely that tax revenues actually fall then IMF resident representative Alex
and fiscal targets are abandoned”. Thus, Segura-Ubiergo warned that “high levels
ultimately, the IMF’s assessment of debt of inequality hamper government policies
sustainability “will rely on both the to reduce poverty … make it difficult to
country’s own circumstances and our sustain growth … and can lead to political
extensive experience with other members instability”. This is confirmed in another
in distress”, the authors conclude. new IMF study, by Stefania Fabrizio and
others.
Source: Lusa
In a 16 February statement, the IMF said
IMF, austerity, inequality that “increasing the income share of the
poorest can boost growth, but raising the
As the IMF discusses a new programme
income share of the richest can actually
with Mozambique, an important debate
harm growth”. But Shell and Stilwell argue
with and within the IMF becomes relevant.
that IMF operational guidelines for its
After the secret debt fiasco, the IMF has
annual macro-economic surveys make no
the upper hand, but donors and civil
reference to inequality, “nor has anything
society will need to monitor the
significant changed in the requirements
discussions to ensure that a hard-nosed
that the IMF imposes on countries to
IMF negotiating team actually follows the
which it provides financial assistance”.
new guidelines emerging from
Washington. The IMF’s Loungani and Ostry note that
IMF programmes tend to focus on three
For four years, IMF head Christine
policy areas: reducing budget deficits
Lagarde has taken a lead in stressing that
through austerity, liberalising labour

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markets, and removing barriers to the Tax (a sales tax) but Loungani and Ostry
movement of capital across borders. But point out that greater reliance on indirect
they note that these policies “sometimes taxes like VAT increase inequality. The
have the side effect of raising inequality”. Fabrizio team notes that “VAT rate
To counter this, they stress the need to increases adopted by LIDCs [low income
protect public spending on health and developing countries] over the past two
education, and to encourage redistribution decades have been associated with
through cash transfers to low-income higher inequality”.
families and other welfare benefits. They
also note that “spending on infrastructure Financial sector reforms are sure to be
reduces inequality”. Fabrizio and his team part of any IMF programme for
point out that infrastructure investment Mozambique, but the Fabrizio team point
efficiency matters, and they use the World out that “financial sector reforms can
Economic Forum (WEF) measure of exacerbate inequality if financial access is
“wastefulness of government spending”. limited to a small share of the population”
And WEF finds that for Mozambique, – which is the case in Mozambique.
although corruption is a problem,
government spending is relatively Donors will play a key role because they
efficient. have effectively made a return to a normal
aid programme conditional on a new IMF
Agriculture remains a key issue. Farm programme. Donors have put the IMF in
subsidies (always opposed by donors and charge, but will need to keep tabs on the
the IMF) actually increase the incomes of negotiations, to ensure that in
workers, reducing inequality, Fabrizio et al Mozambique the IMF really does “walk
look specifically at Malawi’s fertiliser the talk” and does not impose an austerity
subsidy, and found that it both boosted package that further increases inequality.
maize production, raised the income of
small and poor farmers, and reduced IMF again sets leadership standards:
poverty and inequality. Cash transfers to
the rural poor are an alternative to farm On 23 February, Rodrigo Rato, managing
subsidies. director of the IMF 2004-07, was
sentenced to four and a half years in jail
Fabrizio et al argue there is a need to for misusing funds of a Spanish bank,
boost agricultural productivity, but they Bankia, of which he was chair and which
warn that in the short-term this tends to collapsed and was taken over by the
only benefit the better off, increasing government in 2012. Top officials of the
inequality, so it should be combined with bank were given “black credit cards”
cash transfers to the rural poor. In which could be used for unlimited
addition they call for investment in rural personal spending.
electrification and irrigation, more
investment in agricultural R&D and Rato and 64 other Bankia directors and
services, and increased access to executives used the cards for €5-million in
financial services. illegal purchases. In a separate ongoing
trial, Rato and others are accused of
All this requires increased spending and misrepresenting the bank’s financial
goes counter to austerity. The IMF forced soundness at the time of a public share
Mozambique to adopt the Value Added offering in 2011. Bankia claimed it made a

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profit of €11-million in 2011, but a later government, they count as part of the
audit showed a loss of €3-billion. country’s debt.

This means the last three managing By guaranteeing these loans in 2013 and
directors of the IMF have been involved in 2014, the government of the time, headed
scandals. Dominique Strauss-Kahn by Armando Guebuza, increased the
(2007-11) resigned under a cloud of country’s foreign debt burden by 20%. It
various sexual and financial scandals. He has subsequently become clear that none
was succeeded by Christine Lagarde, of the three companies can pay back the
who was confirmed in her post loans.
immediately after being convicted, on 19
December 2016, of “negligence with Menete noted that the guarantees were
public money” for approving a payment of issued without the authorisation of the
€400-million when she was French National Assembly. “Since there was no
finance minister. transparency in the entire process,
including knowledge of how the money
Source: Mozambique News Reports & was used”, he said, “one can only think of
Clippings the possibility that it was corrupt”.
OAM demands punishment over He hoped that the company hired to audit
“hidden debts” Ematum, Proindicus and MAM (the
London branch of the US company Kroll)
On Wednesday 1 March, the chairperson “will do its job professionally, obeying the
of the Mozambican Bar Association highest standards of quality, and
(Ordem dos Advogados de Moçambique, observing the best practices accepted
OAM), Flavio Menete, called for internationally”.
exemplary punishment of those involved
in the scandal of the country’s “hidden For its part, the Public Prosecutor’s Office,
debts”, should it be proved that any Menete continued, “should use the
crimes were committed in contracting available information, in an impartial
these debts. manner so that, if there is sufficient
indication that crimes have been
Speaking at the ceremony opening the committed, those who committed them,
2017 judicial year, Menete said the their accomplices and those who covered
country’s economic situation, caused by the crimes up, will be held responsible in
such factors as the fall in commodity an exemplary fashion”.
prices, had been worsened by the
“shameful situation” of the hidden debts. They should be “prevented from
continuing to benefit from the values,
He was referring to loans of over US$2- goods and rights acquired from this
billion granted by European banks criminal activity, and should be obliged to
(notably Credit Suisse and VTB of Russia) repay the state for the losses caused. It is
to three quasi-public, security related time we ended the perception that our
companies – Ematum, Proindicus and justice system is strong against the weak,
MAM. Since the loans were fully but weak against the strong”.
guaranteed by the Mozambican

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He did not name any suspects in But that was not the case in Inhambane,
particular – but the man who signed the and Menete suspected that contractors
government guarantees, knowing that had taken short cuts and broken the law.
they violated the 2013 and 2014 Budget “Were those schools built taking disasters
Laws, was the the finance minister into account? Was there inspection?
Manuel Chang. As for president Guebuza Were the materials used of the quality
himself, last year he told the required for buildings of this nature,
Parliamentary Commission of Inquiry into considering that they are in areas where
the loans that, despite the illegal nature of cyclones may occur? What engineering
the guaranees, he had no regrets and measures were taken to protect roads that
would do it again, in the name of “national suffer from rains, and almost always in the
security”. same places?”

Menete also attacked the recent award of “Taxpayers and future generations cannot
a contract by the country’s relief agency, continue to be sacrificed because the law
the National Disasters Management is being broken, which leads us to pay
Institute (Instituto Nacional de Gestão de several times for repairing the same
Calamides, INGC), without a public infrastructures”, he declared.
tender, to the company “Transportes
Carlos Mesquita Ltd.” (TCM), a company Source: Agencia de Informacao de
in which Transport Minister Carlos Moçambique
Mesquita has an interest. The Minister is
one of the owners of the Mesquita Group, Mozambican officials say truce is
which is the main shareholder in TCM. boosting economy
The TCM contract is worth MT20-million
The Confederation of Economic
(about US$292,000).
Associations of Mozambique
This is not the first time that companies (Confederação das Associações
linked to the Minister have been accused Económicas de Moçambique, CTA)
of receiving undue benefits. “What are the considers that the truce between the
interests that guide governance?”, asked FADM and the Renamo militia is boosting
Menete. “What criteria were used to grant the economy. On Tuesday 28 February,
benefits to these companies?” Agostinho Vuma, the CTA vice-president,
said that transport, tourism and trade are
He thought the Law on Public Probity, just some of the areas that are benefiting
which was intended to prevent such from the truce.
conflicts of interest, “is being grossly
violated. These situations must be “An assessment by CTA in January found
stopped”. that the agreement has boosted some
important economic sectors, opening new
Turning to the damage caused by cyclone lines for the recovery of the economy”,
Dineo, which hit Inhambane Province on said Vuma. According to Vuma, in
16 February, Menete noted that in areas January, the number of passenger buses
that are prone to natural disasters, leaving from Maputo to provincial capitals
schools and other public infrastructure increased by 74%.
“should be built with characteristics that
Source: Observador
allow them to resist”.

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Mozambican private sector not in a The meeting will continue to work towards
position to raise salaries a consensus proposal agreeable to the
committee, which represents companies
The CTA says that the private sector is both affiliated and not affiliated with the
not in a position to raise workers’ wages. CTA. As soon as there is a definite
The announcement was made on proposal, it will be taken for discussion
Tuesday 28 February in Maputo, during a with the Mozambican Workers’
meeting of CTA members aimed at Organization (OTM). The new minimum
discussing the minimum wages for this wage will take effect on 1 April.
year, which ended without consensus
being reached. Source: Folha de Maputo/O País

Representatives of the eight economic Unions suggest two wage rises in 2017
sectors participated in the meeting. All
sectors agreed that 2016 was an atypical Mozambique’s main trade union
year for the national economy and, as a federation, the OTM, has suggested that,
result, there were inconsistencies in the if the country’s current financial situation
economic balance presented by the prevails, then the minimum wage should
Labour Advisory Commission’s 2016 be increased twice this year rather than
Economic and Social Plan (PES). once. OTM General Secretary Alexandre
Munguambe made this call public on
According to CTA representative, Victor Friday 3 March, during a meeting of the
Miguel, PES 2016 makes a positive Labour Consultative Commission (CCT),
assessment of the national economy, the tripartite negotiating forum between
which entrepreneurs question. The CTA the government, the unions, and the
maintained that the Balance of the Social employers’ organisations.
Economic Plan of 2016, presented by the
Ministry of Economy and Finance, does The standard practice has been for the
not reflect the reality experienced by CCT to agree on a set of minimum wages
business people and economic agents in by sector, which the government then
general throughout the past year. puts into law. The new wages take effect
as from 1 April each year. But the OTM is
Entrepreneurs say that any proposal now suggesting that in times of high
presented must match the financial reality inflation, wages should be adjusted more
of companies, at the risk of strikes or frequently.
bankruptcies as a result of not being able
to pay. “We would like to recall that in the past,
when annual inflation reached two digits,
“The minimum wage is calculated on a the minimum wage was increased twice a
formula. Wages based on the macro- year”, said Munguambe. “If the current
economic data presented would be situation continues, there is every reason
unsustainable. Companies would close, to return to this practice”.
and operators who tried to work would be
confronted every day with strikes for non- In 2016, inflation sharply deteriorated,
payment of wages. If the documents largely because of the depreciation of the
move forward as they are, we can Mozambican currency, the metical.
anticipate a major crisis”, Miguel stated.

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According to the National Statistics the productivity and profitability of the


Institute (Instituto Nacional de Estatística, companies”. Workers and employers
INE), based on the consumer price needed each other, she claimed, arguing
indices of the three largest cities (Maputo, that “there are no winners and no losers.
Nampula and Beira), inflation for the year What must guide us is the principle of
reached 25.27%. good faith”.

Munguambe stressed that workers’ living Minister Diogo urged the negotiating
standards had tumbled last year. “2016 teams to ensure that the discussions on
was characterised by politico-military raising the minimum wage “take place in
instability, natural disasters, a financial an environment of fraternity, calm,
crisis, depreciation of the metical and thoughtful consideration and discretion, so
unsustainable foreign debts”, he said. that we may find, without extreme or
“These factors raised the cost of living to radicalised positions, a fair balance
unbearable levels, and worsened the between the need for a wage adjustment,
poverty of the majority of Mozambicans”. the maintenance and creation of jobs, and
the sustainability of the companies”.
The purchasing power of workers earning
low wages had fallen sharply, he said. On Source: Agencia de Informacao de
top of this came increasing Moçambique
unemployment, as companies laid off
staff. “Lack of jobs for people of Mozambique Stock Exchange still
economically active age, plus layoffs, lacks a single listed SME
worries us, because unemployment
worsens crime”, said Munguambe. Under Small and medium businesses operating
these circumstances, a wage rise was in the country completely ignore the
imperative. “Wages must be increased as financing potential of the Mozambique
from 1 April”, said Munguambe. “It can’t Stock Exchange, and although 20 years
be the workers who pay for the economic old, the country’s only stock exchange
crisis”. does not list even one small or medium-
sized enterprise (SME).
Labour Minister Vitória Diogo, who chairs
the CCT, gave a much rosier picture, Several reasons can be presented.
claiming that 277,647 jobs were created in Among them are entry requirements
2016. Approximately 106,749 citizens, beyond the companies’ capacities, poor
mostly young, had attended professional disclosure of stock market value, fear of
training courses, thus increasing their joining a Stock Exchange still lacking
chances of obtaining good jobs. expression, and organisational deficits
such as the lack of organised accounting.
She urged the negotiators to act “with a
high sense of responsibility, always The Chairman of the BVM Board of
Directors says that the requirements for
bearing in mind that more and better jobs,
joining the stock market were simplified in
maintaining jobs, and improving the living
2008, but even so, it remains very difficult
standards of workers and their families,
to convince entrepreneurs to join. From
and the prosperity of enterprises, are,
taken together, our objectives – but they 2008 to 2009, companies were supposed
to have a minimum of MT16-million of
are attained gradually and as we increase

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share capital, two years of audited and Tax incentives raise doubts in
published accounts and a dispersion of Mozambique
15% of the capital stock in order to be
able to join exchange. The excessive tax benefits that cost the
state more than US$400-million a year
However, Sailm Valá points out, since continue to divide opinions in
2009, everything has changed. Mozambique. The government says they
Companies are now required to have are aimed at job creation, while
MT4-million, nine months of audited and economists consider them unnecessary
published accounts and 5% of capital and likely to offer cover for corruption.
dispersion.
Several economists told VOA that the
Despite the simplification, no SME joined policies the Mozambican government is
and the number of listed companies even following are moving money out of the
dropped by four. “From 2009 until today, country, but officials say tax benefits are
we do not yet have any small and medium needed to attract investment.
company listed on the stock exchange”,
Valá admitted. All projects approved under the
Investment Law are exempt from customs
To find solutions to the problem, the duties and Value Added Tax (VAT) on the
Mozambican Stock Exchange and the importation of equipment in class K of the
Institute for the Promotion of Small and Customs Tariff, for example.
Medium Enterprises (IPEME) signed a
Memorandum of Understanding (MoU) on Investments in the city of Maputo enjoy a
Wednesday 1 March. The goal is to five-year reduction in the collection of
publicise stock exchange financing Corporate Income Tax in relation to the
opportunities. total investment amount. The other
provinces receive 10% of this deduction.
On that occasion, Valá said that IPEME
has the responsibility of preparing and Economists admit that the US$400-million
persuading companies to join the that the country loses each year as a
exchange, which can offer SMEs lower result of tax breaks would not provide for
interest rates than commercial banks. all of Mozambique’s needs, but say it
could do much.
IPEME director general Claire Zimba says
that nothing is lacking in the institution For economist João Mosca, the argument
that he directs, although he recognises that tax breaks attract investments is not
the need to be more agile. true, because Mozambique has good gas
and coal reserves, “and investors will
“I wouldn’t say we’re failing. I understand always come if there are good
that we must continually disseminate governance practices and fiscal policies
information”, he said. similar to those practiced in other
countries”.
After the signing of the MoU, IPEME staff
started receiving training from the stock Mosca points out that certain rates of
exchange in ways to attract more SMEs. taxation could be applied, provided that
this ensures that the company which pays
Source: O País

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these preferential rates has a comparative tariffs so that the activity could be carried
advantage in gas exploitation, for out profitably.
example, compared to its exploitation of
other deposits, because there are more “We recommend government consider the
deposits that are not being explored. possibility of liberalising transport prices,
according to the operational costs and
Figures from the Centre for Investment according to existing and consolidated
Promotion (Centro de Promocao de models in other countries. We also
Investimentos, CPI) indicate that the recommend creating mechanisms that
volume of investments in Mozambique in encourage the maintenance of vehicles in
2015 was approximately US$6-billion. the country”.

Source: VOA Português CONSILMO also calls for the privatisation


of, among others, Moçambique (LAM) and
CONSILMO asks government to PETROMOC in order to return them to
readjust contracts with profitability, and conversely deplores the
contractors/privatise EdM, LAM, precarious conditions under which some
Petromoc security company employees in the
country work.
Against a backdrop of companies laying
off workers due to the difficult economic Source: O País
situation that the country is experiencing,
the National Confederation of Young Mozambicans disappointed with
Independent and Free Trade Unions of employment policy
Mozambique (Confederação Nacional dos
Sindicatos Independentes e Livres de Young Mozambicans say the
Moçambique, CONSILMO) argues that government’s projections about creating
the solution is for the government to around 300,000 new jobs this year are
adjust contracts signed with contractors to unrealistic and over-optimistic. In
oblige them to not cut their labour force. conversation with VOA, several young
people have slammed the absence of an
“The government should review the effective employment policy, especially for
contractual agreements already entered youth. Labour Minister Vitória Diogo said
into with contractors with a view to that the new jobs would be created under
ensuring that they can, in the context of the government’s strategy to reduce
the devaluation of the metical, unemployment and raise incomes in the
progressively from 2014 to 2016, benefit country, especially through a focus on
from adjustments to continue ongoing agriculture.
projects and thus contribute to preventing
companies going bankrupt as a result of She said that if agriculture managed to
the economic and financial crisis that has raise incomes, it would mean that income
hit them”, CONSILMO secretary general, and self-employed remuneration would
Jeremias Timana, says. also increase, “and this is how the country
will fight poverty”.
Timana added that the union wanted the
government to liberalise transportation “The issue of new jobs leads us to see
that there is a lot more creativity

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emerging, with new entrepreneurs and A central bank statement received by


new initiatives, and when we look at Jornal Notícias recalls that bank
services, we also see that self- guarantees can only be issued by banks.
employment has increased”, she said.
“There being based evidence of non-
But for Abdul Sulemane, this is not the permitted activities conducted by some
result of any government employment microfinance operators, namely the
policy, and it remained necessary to issuance of bank guarantees, the Banco
create opportunities “for the young to de Moçambique communicates that, in
succeed”. the light of Article 4 of the Law on Credit
Institutions and Financial Companies –
“I have heard these government Law No. 15/99 of 1 November, with the
projections and I think they are unrealistic. changes introduced by Law no. 9/2004, of
We do not have a youth employment 21 July, the issuance of bank guarantees
policy in the country”, he said. is an activity exclusively allowed to
banks”, the statement reads.
Orlando Francisco, another young man,
says he does not know if he will ever get a The statement adds that institutions
job, “but I remember that creating jobs for authorised to grant credit in accordance
youth was one of the promises made by with the Microfinance Regulation,
President Filipe Nyusi during the election approved by Decree No. 57/2004 of 10
campaign”. December, namely Microbancos, Credit
Unions, Savings and Loan Organisations
For his part, Policarpo Tamele believes and Microcredit, can only issue other
that one of the solutions to the lack of types of guarantees other than banking,
employment is to give tools to and within the context of the microfinance
Mozambican youth, “not in the sense of segment and within the scope of the
giving money, but by creating conditions conditions allowed for the exercise of their
for young people to access start-up funds” activity.
Mozambican authorities estimate the Source: Jornal Notícias
country’s unemployment rate at about
30%, but some disagree, saying the Banco Moza says recapitalisation
percentage is higher. proceeding within expectations

Source: VOA Português On Wednesday 1 March, Moza Banco


said that its recapitalisation was
Financial Services: proceeding within expectations and that
the institution was functioning normally.
Banco de Moçambique slams
illegalities in the issuance of In a statement aimed at rebutting
guarantees by microfinance operators unfavourable perspectives on its situation,
Moza Banco said it had been able to
On Wednesday 1 March, the Banco de recover confidence in the market and with
Moçambique condemned the practice of the general public.
microfinance operators issuing bank
guarantees contrary to legislation in force
in the country.

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“The rescue of this institutional credibility leading the central bank to deny any
is very much in keeping with the ‘reasons to panic’ and to assure the public
commitment that the Banco de that the financial system was sound, with
Moçambique has given regarding the average solvency ratios of 14%, well
conduct of this process, through the above the 8% required by the supervisory
intervention carried out on 30 September body.
of last year”, the statement reads.
Unlike O Nosso Banco, which had only a
Banco de Moçambique has said on little more than 5,000 private and 900
several occasions that the recapitalisation commercial depositors and represented
of Moza Banco would undoubtedly be only 1% of the country’s banking system,
brought about, regardless of the form and Moza has more than 93,000 private and
the players who would participate in the 8,000 commercial customers and a 7.71%
process. share, being the fourth largest
Mozambican bank, with 48 branches
“We want to assure all Moza Banco across the country.
stakeholders, whether they are clients,
suppliers, employees or other partners, Source: Lusa
that we strongly believe the institution will
continue to carry out its mission in the
national financial system and economy in
a solid and well-balanced way”, the
statement, signed by Moza Banco
president João Figueiredo, said.

At the end of January, the General


Shareholders’ Meeting of Moza Banco,
owned by Portugal’s Novo Banco,
approved a capital increase of MT8.17-
billion (€107.7-million) after the Banco de
Moçambique injected around MT8-billion
(€105-million) into Moza Bank in
December to halt its collapse and avoid
an “earthquake” in the Mozambican
financial system.

Two months after its intervention in Moza


Banco, the bank supervisor liquidated O
Nosso Banco, owned by the National
Social Security Institute (INSS), and
activated the deposit guarantee fund,
providing for a refund of only MT20,000
meticais (€R240) for individual depositors,
excluding companies.

Despite its small size, O Nosso Banco’s


bankruptcy launched a wave of alarm,

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Société Générale pledges expansion in stations) providing the clients with an


Mozambique electronic wallet, allowing them to make
transactions via a smart phone.
On Thursday 2 March, the French
banking group Société Générale (SG) SG stresses that, for the time being, one
pledged to expand its business in of its priorities will remain corporate
Mozambique, hoping to achieve a market banking, “an area in which it has a
share of 10%. “We are not here for the competitive advantage due to the
short-term, but to develop long lasting and reputation and stability of the group”. It
trusting relations with the Mozambican has focused on sectors where it believes
government and Mozambican clients”, it has a world leadership position, such as
said Alexandre Maymat, the Société the oil and gas industries. In Mozambique,
Générale deputy director responsible for it has become the financial advisor to
Africa, addressing a press conference at Anadarko, the US company that is the
the inauguration of the new Maputo operator of offshore Area-1 of the
headquarters of SG-Mozambique. Rovuma Basin, in the far north, where
vast reserves of natural gas have been
Société Générale entered the discovered.
Mozambican banking system through an
agreement in March 2015, under which it But in future, said Maymat, the bank
became the majority shareholder in what intends to expand its retail business. “We
was then the Mozambican branch of the expect retail banking to become decisive
Mauritius Commercial Bank (MCB). The for profitable banking”, he said,
Chief Executive Officer of SG- mentioning 10% as a target market share.
Mozambique, Laurent Thong Vanh, said “I look at this market as an opportunity,
SG had injected capital of US$18-million, not a risk”, he added. The majority of the
giving it a 65% stake in MCB- Mozambican population do not hold bank
Mozambique. accounts, and Société Générale saw this
as providing room for development. In
MCB only had two branches in which Société Générale could bring its
Mozambique, in Maputo and the expertise to bear.
neighbouring city of Matola, concentrating
mainly on corporate clients. Since taking Société Générale, a bank founded in
over MCB, SG has invested a further France in 1864, is regarded as one of the
US$3-million in upgrading the bank’s 30 largest banks in the world, with net
computer platforms, and has doubled its assets of around US$66.4-billion. It
staff (from 50 to 100). operates in 76 countries, 18 of them in
Africa.
Vanh said the bank will expand to other
major cities, such as Beira, Nampula and Mozambique is the first country in
Pemba, but that its retail operations, southern or eastern Africa where Société
especially in more remote areas, will Générale has invested. Vanh regarded
depend heavily on mobile banking. this as the first step in expansion across
southern Africa.
Rather than build large numbers of
branches, SG-Mozambique will operate Source: Agencia de Informacao de
via “banking agents” (such as petrol Moçambique

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Oil & Gas: “With extensive experience in oil and gas


exploration, we plan to bring United
Companies seek US support for States experts to help Mozambique
hydrocarbon exploration cement its involvement in the entire
process of exploring these resources”.
Gas exploration is at the door and
national companies have high The need to improve competitiveness is a
expectations. A meeting in Maputo on point highlighted by one of Area-4
Tuesday 28 February, organised by the operators in the Rovuma Basin, the
commercial services of the US Embassy American oil company ExxonMobil.
in Mozambique in partnership with the
CTA, discussed opportunities, challenges “We have to investigate international
and the role of the state, government, quality standards to ensure the
companies in the logistics sector and oil competitiveness of your companies,
companies. because we want customers to help us
become more efficient”, the company’s
Participants recognise that there are representative said.
windows of opportunity for the growth of
companies, but they point out the need to US presence in gas exploration in
prepare the country for the standards Mozambique is currently represented by
demanded by the oil and gas industry. Anadarko, the company that is exploring
Area-1 of the Rovuma Basin in Cabo
The private sector, represented by CTA Delgado Province.
Vice-President Agostinho Vuma, believes
that there are great opportunities in ExxonMobil, another US multinational, is
various service sectors, so opportunities preparing to explore Area-4 and is willing
should not be seen as limited to technical to recruit Mozambican labour during its
sectors. operations, as it is already doing in other
countries where it operates, such as
The government pointed to the National Angola and Nigeria.
Content Law as an important step in
enabling the country to profit, with Director Source: O País
of Economic and Financial Studies at the
Ministry of Economy and Finance, Vasco ENI close to finalising deal to sell stake
Nhabinde, explaining that Mozambique in Mozambique gasfield
takes advantage of local content
compared to international experiences, as On Wednesday 1 March, ENI said that it
it looks not only to the hydrocarbon sector was “within weeks” of sealing a
but others such as agriculture, in addition multibillion-dollar deal to sell a stake in its
to involving both domestic and foreign Mozambique operations, with ExxonMobil
companies. favourite to buy the asset.

The US Embassy says that national The Italian energy group has been
companies need to be supported in order seeking a partner to help sell
to be able to do business in the Mozambique’s vast offshore gas
hydrocarbon sector. resources on global markets and
ExxonMobil is seen as the most likely

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candidate because it also has exploration hurdles to development in one of the


licences in the south-east African country. world’s poorest nations.

Claudio Descalzi, ENI chief executive, told ENI’s stake sale is expected to be
the Financial Times the long-awaited followed later this year by the final go-
transaction was “very close” but declined ahead for its multibillion-dollar Coral
to comment on the identity of the buyer. South field – the first part of the Area-4
Bankers and industry figures said it would block due for development.
be a big surprise if it was not Exxon. The
US energy group declined to comment. BP last year agreed a 20-year deal with
ENI to buy the entire output from Coral
Descalzi’s statement came as ENI South.
reported its first quarterly profit for 18
months, aided by higher oil prices. Massimo Bonisoli, analyst at Equita,
estimated the sale of a 20% stake in
ENI wants a partner with strong financial Area-4 would raise €1.7-billion in cash for
and technical capacity to help develop ENI, with the potential for this to rise to as
gasfields in its so-called Area-4 block off much as €2.5-billion should the Italian
the coast of Mozambique, and the group eventually hand over operational
onshore infrastructure needed to export control to the buyer.
the output in liquefied form.
ENI holds a 50% stake in the Area-4
Mozambique’s location beside the Indian block. The other half is owned by CNPC
Ocean makes it ideally placed to serve of China, Galp Energia of Portugal,
the growing liquefied natural gas (LNG) KOGAS of South Korea and
markets of Asia but there have been Mozambique’s national oil company,
many political, economic and practical Empresa Nacional de Hidrocarbonetos
(ENH).

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Any deal would add to the US$2.2-billion million, more than double the €200-million
raised by ENI from the sale of stakes in its consensus forecast from analysts.
giant Zohr gasfield in Egypt last year to
Rosneft and BP. Michele Della Vigna, analyst at Goldman
Sachs, attributed the “strong” results to
Bringing partners into its biggest projects higher production and lower costs.
is helping ENI reduce debts and capital
expenditure after a series of large oil and He noted debts were falling and that ENI’s
gas discoveries that have made it the record of replacing reserves was the best
most successful explorer among global oil within its peer group.
and gas majors.
Source: Financial Times
In a strategy update, ENI said on
Wednesday that it aimed to raise €5- Sasol says Mozambique drilling
billion to €7-billion from disposals over the campaign showing ‘promising results’
next four years, including the as it scales back capex as rand
Mozambique stake. strengthens, H1 earnings fall

Descalzi said exploration successes were On Monday 27 February, South African


beginning to pay off with four large petrochemicals group Sasol said that it
projects – in Angola, Ghana, Indonesia was scaling back planned capital
and Zohr in Egypt – due to start expenditure this year in the face of a
production this year. strengthening rand as it posted a fall in
interim earnings partly rooted in the
ENI forecast that its oil and gas currency’s gains.
production would grow by 3% a year until
2020.  Sasol said it was revising its capex
estimate for the full year to ZAR66-
There would be no let-up in exploration billion (US$5-billion) from ZAR75-
and project development, with plans to billion “largely due to the impact of
drill 120 wells in more than 20 countries the stronger rand/US dollar
over the next four years, and bring 22 new exchange rate coupled with our
projects on stream. cash conservation initiatives and
active management of our capital
This would be achieved in spite of a 10% portfolio”.
reduction in capital expenditure over the
period due to cost cuts and stake sales.  Sasol’s products are priced in
dollars but much of its costs are
ENI predicted that oil prices would be rand-based. Forex movements also
around US$70 per barrel in 2020 – more have valuation implications for the
than a quarter higher than current trading company’s balance sheet.
values – and said that, at this level, it
would produce US$29 of free cash flow  Half-year headline earnings per
per barrel after capital expenditure was share (HEPS) decreased 38% to
deducted. ZAR15.12, in line with what the
company previously flagged to the
ENI’s adjusted net profit in the three market.
months to 31 December came to €459-
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 Sasol attributed the decline to rand capacity to make debt payments being
gains and to a strike at its Secunda under strain. The country’s total public
mining operations. debt, which is mostly denominated in
foreign currency, increased to what the
 Net cash position decreased from IMF described as “distressed levels” in
ZAR52-billion in June 2016 to 2016, owing to the addition of previously
ZAR28-billion rand at 31 December undisclosed loans worth US$1.4-billion,
2016, mainly due to the funding of the equivalent of 10.7% of GDP.
the company’s ethane cracker
project in Louisiana and the effect Sasol is nevertheless pushing ahead with
of a stronger rand/US dollar a US$1.4-billion investment programme in
exchange rate. support of a Production Sharing
Agreement (PSA), granted in early 2016.
 Board declared a gross interim The programme covers oil and gas
dividend of ZAR4.80 per share, development areas in southern
15.8% lower compared with the Mozambique.
prior period.
The JSE-listed company drilled four gas
 In Mozambique, the company said and oil wells – two in Temane and two in
it has completed four wells as part Inhassoro – during the six months to 31
of its drilling campaign which are December 2016, and subsequently issued
“showing promising results.” (US$1 a notice of discovery after finding oil
= ZAR12.9615). (together with gas) while drilling for gas in
the Temane permit area.
Source: Reuters
The current focus of the 13-well
Sasol says relations with Mozambique campaign, comprising five gas wells,
in “good space” seven oil wells and a water well, is on oil
prospects; Sasol is confident of adding oil
Sasol joint president and Chief Executive production to its gas-dominated
Officer, Stephen Cornell, has described Mozambique portfolio in the coming two to
the group’s relations with the Mozambique three years.
government as being in a “good space”,
despite the country’s current fiscal “Our feeling is that we are in a good
difficulties, as well as periodic criticism space – we want to do more, they are
that the country is not benefiting fully from critical to us and, I believe, we are very
the South African energy and chemicals important to them. And, from our
group’s investment activities. standpoint, [the relationship] hasn’t really
changed at all in the last few years”,
Cornell says that, besides ongoing Cornell says.
investment activities, Sasol is also part of
efforts to support the Mozambican “All the feedback we have from the
authorities navigate their way through the government of Mozambique is very
prevailing financial challenges. supportive”. His statement follows after
Mozambique has confirmed the the re-emergence of reports suggesting
deterioration of its macro-economic and that Sasol’s initial contract to mine
fiscal positions, as well as government’s Mozambican gas and transport it to South

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Africa, primarily for conversion to fuel and A Tuesday press release by the INP notes
chemicals at its Secunda and Sasolburg that Sasol has been opening new
facilities, was too heavily skewed in favour production wells for oil and gas since mid-
of the company. 2016. These are part of Sasol’s light oil
project in Inhassoro district, which forms
Countering this argument, Sasol joint part of the overall development plan for
president and Chief Executive Officer the Pande and Temane gas fields. Sasol
Bongani Nqwababa reports that, since has been exploiting these fields since
2004, more than US$2-billion has been 2004, and exports much of the gas by
invested in developing gas fields, a pipeline to its chemical plants in the South
central processing facility in Temane, as African city of Secunda.
well as the gas pipeline to South Africa,
which was recently expanded through a According to the INP, in late August 2016,
project known as Loop Line-2. in one of the new Temane wells, identified
as T-27, Sasol discovered “previously
From 2004 to 2016, more than US$1- unknown confined reservoirs of gas and
billion was delivered to in taxes, royalties petroleum, the commercial viability of
and social investments, as well as through which should be assessed”.
profit sharing and dividends paid to state-
owned entities, he adds. Further, goods So far, the INP release adds, five new
and services worth US$831-million were production wells have been drilled in the
procured from Mozambican suppliers. area covered by Sasol’s production
sharing contract, three in Temane
“We remain committed to our growth containing gas, and two in Inhassoro,
plans … and we will continue to partner containing oil. The new discoveries,
with the country’s government and other including T-27, were promptly notified to
stakeholders on projects that will help the Mozambican authorities in August and
stimulate growth”, Nqwababa states, while September last year.
adding that Sasol is confident that the
economics to develop the PSA licence Since then, the INP adds, no other
area remain positive. Sasol expects to discovery has been notified. Hence
complete its 13-well drilling programme by references to petroleum production can
the end of 2018. only refer to the Inhassoro light oil project,
which was approved in January 2016.
Source: Mining Weekly
The INP assures the public that the
Mozambique’s INP denies any new oil Mozambican government will use all the
discovery in Inhambane means at its disposal to make any mineral
resource discovery known to
Mozambique’s National Petroleum Mozambicans at first hand.
Institute (Instituto Nacional de Petróleo,
INP) has denied claims, apparently made This is strikingly different from the claim
on Monday 27 February by an executive made on Monday in a report from the
of the South African petrochemical Reuters news agency, which made it
company Sasol, that there has been any seem that new oil discoveries had very
new oil discovery in the province of recently been made in Inhambane.
Inhambane.

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Indeed, by using the word “off”, the report be end in mid-2017”, the source said.
implied that these were offshore wells. “Rosneft does not hold talks with ENI on
engagement in Italian company’s projects
The report cited a Sasol Executive, in Mozambique”, the source said.
Stephen Cornell, as saying that four wells According to Financial Times, ENI may
(out of a planned 12) had given positive sell a stake in an oil and gas field in
results, two for gas and two for oil. “These Mozambique shortly.
will be the first oil wells in Mozambique
that go to full development. Probably in Source: Tass
two, maximum three years”, Cornell
supposedly said. Fuel companies demand change in
subsidy system
But if, as the INP release states, there
have been no new discoveries since The Mozambican Association of Fuel
August, either Reuters got the story Companies (Amepetrol) has warned that
seriously wrong, or Cornell was talking up the country risks running out of petrol and
discoveries that had been made months diesel, if the government does not change
earlier, in the context of a well-known its current fuel subsidy system, reports
project. Friday’s issue of O País.

Source: Agencia de Informacao de The companies, in a letter addressed to


Moçambique Prime Minister Carlos Agostinho do
Rosário, said they can no longer go on
Rosneft expects to make concession shouldering the difference between the
agreements on Mozambique offshore price which they pay for fuel on the
areas international market (denominated in US
dollars), and the price in meticais at
Rosneft expects to make concession Mozambican filling stations, which is fixed
agreements for development of three by the government.
offshore areas in Mozambique in mid-
2017, a Rosneft representative told TASS The government is committed to
on Thursday 2 March. compensating the companies for this
difference, but they claim this subsidy
RN-Exploration (a subsidiary of Rosneft) system is not working properly because of
and ExxonMobil’s affiliate in Mozambique the government’s lengthy delays in
were recognised winners of the tender for paying, which creates cash flow problems
three areas organised by Mozambique’s for the companies.
INP. Work was planned to start in the third
or fourth quarter of 2016 but no The letter says the companies have, since
agreement with the government of June 2016, suffered accumulated losses
Mozambique has been signed so far. of around US$70-million– money which
the state should pay, but has not yet done
“The delay in contract negotiations with so.
INP and the government occurred due to
reasons beyond the control of partners. “The current decapitalisation of the
The invitation to initiate talks was received companies is largely due to failure to
in the fourth quarter of 2017. Negotiations update the price of fuel”, the letter argues.
are underway now and we expect they will
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“It is this that has originated the credit of Mining:


around US$70-million which has to be
paid by the state”. Vale Moçambique ends 2016 with a
loss of US$105-million
The situation, they warn, will worsen if the
current trend of rising international oil Vale Moçambique, a subsidiary of
prices continues. Brazilian group Vale, had an operating
loss of US$105-million in 2016, a figure
Unless the current subsidy system is which compares with a loss of US$508-
changed, the letter adds, Mozambican million in 2015, said the mining group as it
fuel distribution could simply collapse. published it accounts for the fourth quarter
and 2016.
“We stress that it is absolutely imperative
and urgent to change the system, doing The document said the improvement
away once and for all with the system of compared to 2015 was due mainly to the
price compensation”, the companies say. reduction of costs and expenses in the
amount of US$344-million and an
The last time fuel prices changed was on increase in prices, which increased the
1 October, when the price of petrol rose company’s turnover by US$140-million.
by 5.3%, from MT47.52 to MT50.02.
Coal, exported through the port of Nacala
But if the price is expressed in foreign along the railway out of Moatize that
currency, petrol was still much cheaper crosses part of Malawi and swings back
than a couple of years ago, thanks to the into Mozambique, provided revenue of
sharp depreciation of the metical. US$110-million while the coal transported
along the Sena railway and loaded at the
In 2014, when expressed in US dollars, port of Beira posted a loss of US$215-
the price was about US$1.6 per litre. Even million.
with the October price rise, it was just 66
US cents per litre. Coal transported along the Sena and
Nacala lines totalled 8.8-million tons in
The price of diesel rose in October by 2016, more than double the 4.1-million
24.5%, from MT36.81 to MT45.83 a litre. tons carried in 2015 and the coal shipped
The metical has staged something of a at ports totalled 8.7-million tons, also
recovery over the past couple of months, more than double the 3.7-million tons
so that, in dollar terms, petrol is now 73 recorded in 2015.
US cents a litre, and diesel 67 cents.
Overall, the Vale group, which operates
Amepetrol argues that is not enough, and coal mines in Australia and Mozambique,
fuel remains cheaper in Mozambique than improved its performance from a loss of
in some of the neighbouring countries – US$508-million in this segment in 2015 to
which is an incentive for foreign drivers to a US$54-million loss in 2016, mainly due
cross the border and fill their tanks at to improvements in Mozambique and an
Mozambican petrol stations. increase in ore prices.
Source: Agencia de Informacao de Source: MacauHub
Moçambique/O País

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Cheap Mozambican coal leading to Chinese investment in coking coal


shutdown of Malawi’s mines
On Friday 24 February, the Mozambican
The import of cheap Mozambican coal authorities signed a MoU in Maputo,
into Malawi has choked the local market under which a Chinese steel company will
and led to the shutdown of more than set up an industry to transform the
three quarters of Malawi’s mines, thermal coal extracted from mines in Tete
according to Mining & Trade Review. Province into coking coal.

Mines at Mwaulambo, Nkhachira, Jalawe, The plant, budgeted at around US$1.3-


Lisikwa, Njati and DDY Trading in billion, will be established, not in Tete, but
Malawi’s North Region have all stopped in the northern province of Nampula, in
operations as production has ramped up the transport corridor leading to the port of
at mines at Moatize in Tete Province, Nacala.
Mozambique – which is closer to the
coastal consumers in Malawi’s The memorandum was signed by the
commercial city of Blantyre. Permanent Secretary of the Mozambican
Ministry of Industry and Trade, Carla
Mozambique coal is sold at an average Soto, and by the chairperson of the Board
price of US$165 per metric ton while of Directors of the company China Brazil
Malawi coal sells at around US$190 per Xinnenghuan International Investment
ton, according to the article. (CBSteel), Zhang Shengsheng.

Wiskes Mkombezi, a spokesperson at Witnessing the ceremony were the


Malawi’s Ministry of Industry, Trade and Deputy Minister of Industry and Trade,
Tourism, told Mining & Trade Review that Rajendra de Sousa; and the Chinese
Mozambican coal is only cheaper when Ambassador to Mozambique, Su Jian.
the importers evade taxes.
The plant is planned for a production
Mozambique is exempted from import capacity of four-million tons of coking coal
duty due to trade protocols under the a year, and construction work is due to
Southern Africa Development Community begin in the second half of this year.
(SADC) that remove trade barriers
between member countries. However, the Speaking at the ceremony, Deputy
former minister of Natural Resources, Minister de Sousa said that setting up this
Energy and Mining, Grain Malunga, told type of industry will create “very attractive”
Mining & Trade Review that it is possible economic conditions for investment. “For
for Malawi to put in place regulations to us Mozambicans, this project will
protect local industry, despite these trade contribute to better management of our
protocols. raw materials”, he added. “We should
thus increasingly build up the capacity of
Tanzania, for example, has just imposed our local labour force, in order to
similar import restrictions on foreign coal, accompany the growing competitiveness
which has further weakened the of industry”.
profitability of Malawian mines.
None of the companies currently mining
Source: Zitamar News/Mining &Trade Review coal in Mozambique, such as the Brazilian

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and Indian mining companies Vale and north-west ruby mineralisation trend,
Jindal, have a monopoly, he stressed, and which also transects the adjacent
the entry of CBSteel would create great Gemfields licenses.
competitiveness in the Nacala Corridor,
which would be beneficial for the Highlights:
Mozambican economy.
 Mustang acquires 65% stake in
According to Shengsheng, building the highly strategic ruby license
factory could take about a year, and bordering its Montepuez Ruby
would directly create 1,500 jobs. He Project in Mozambique
envisaged “a major industrial zone”
springing up around the factory, with the  The 3,500-hectare license sits
potential to create many more jobs. between the Montepuez Ruby
Project and a key secondary
The coking coal produced at the new deposit being mined by London-
factory can be exported from Nacala to listed Gemfields
CBSteel’s steel mills in Brazil. The raw
material, thermal coal from the Tete  Site visit confirms artisanal miners
mines, can reach Nampula along the currently recovering large gem-
railway from the Moatize coal basin, which quality rubies from the area
runs through southern Malawi and links covered by the new license
up with the Nacala Corridor.
 Mustang will issue 30-million
Source: Agencia de Informacao de shares (escrowed for 24 months)
Moçambique and pay US$100,000 cash as
consideration for the 65% interest
Mustang Resources Ltd. acquires in the license
highly prospective adjacent ruby
license next to Gemfields  Mustang will fast-track prospecting
from this new area to complement
Mustang Resources is pleased to the growing bulk sampling
announce that it has agreed to acquire a programme at Montepuez
65% interest in a new highly strategic ruby
license (License 8245L) which borders its  Heavily oversubscribed placement
existing Montepuez Ruby Project in to a select group of new and
Mozambique. A site visit undertaken by existing institutions and
Mustang consultant, Paul Allan, has sophisticated investors to raise
confirmed that artisanal miners are 5.88-million.
recovering large, high-quality rubies from
this license area, which also borders one Following completion of environmental
of the key ruby deposits being mined by permitting, Mustang will immediately
London-listed Gemfields. commence a prospecting programme,
including mapping, auger drilling and
Importantly, Mustang's new license is only trenching to determine a preferred
three kilometres directly south-east of the location to open a bulk sampling pit.
company’s plant site and Alpha ruby Mustang will then commence processing
deposit and lies along the south-east, gravels from the priority areas identified,

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further enhancing the current bulk “We are very pleased to welcome a range
sampling programme and ruby sales of new institutional and sophisticated
planned for 2017. investors onto our share register. To have
received such strong demand for the
To support a further increase in the drilling placement is a real credit to the work
and bulk sampling campaign and to done by the Mustang team to date”.
accelerate its development plans with the
expanded project area, Mustang has Geology of newly acquired License
undertaken a capital raising, receiving 8245L:
binding commitments for up to 5.88-
million from existing and new institutional License 8245L lies within the Montepuez
and sophisticated investors. The Complex, an extremely geologically and
placement has been heavily structurally deformed complex defined in
oversubscribed. part by its unique geophysical signatures
compared to the surrounding areas. Due
Mustang Managing Director Christiaan to the complexities of the lithology and
Jordaan said the acquisition of the new structure within the license area, several
license was another important step in the factors may have contributed to the
company’s strategy to become a leading formation of corundum and, in particular,
global supplier of premium-quality rubies: gem-grade ruby within the license area.
These include:
“We recently achieved our target of
tripling the throughput rate on our bulk  The possibility of suitable
sampling and we now beat it regularly”, (Aluminium rich) sedimentary
Jordaan said. protoliths.

“The first rubies sent to the US earlier this  The possibility of aluminous
year are well advanced in their intrusives.
preparation by leading cutter and polisher
Meg Berry for certification and sale.  The possibility of partial melts
resulting in aluminous melts/fluids.
“These near-term sales will enable us to
value our rubies and are a key input into  Suitable metamorphic and/or
our feasibility study. It will also pave the metasomatic conditions.
way for Mustang to record its first sales
revenue before the middle of this year.  Suitable structures to localise
Aluminium rich fluids and or
“The global market for rubies is growing intrusives or associated
rapidly and Mozambique stones are in pegmatites.
particularly strong demand, as shown by
Gemfields’ success.  Possible influence of carbonate
rocks.
“The acquisition of a 65% interest in this
strategic and highly exciting new license Importantly, the newly-acquired license is
will help us to capitalise on what we covered by similar lithologies as those
believe is an outstanding opportunity for found in the Gemfields project areas and
Mustang and its shareholders”. the potential thus exists for similar ruby

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mineralisation, both primary and quality and notably secondary (abraded


secondary, especially given that the with pockmarks).
regional area is structurally very complex
and not yet well understood. An analysis The presence of artisanal activity within
of the high resolution aeromagnetic data License 8245L, combined with its
of the area shows several SE-NW prospective geology, provide high priority
trending lineaments which transect the targets for further prospecting, including
license area as well as the Gemfields the undertaking of bulk sampling
license areas to the south-east. These activities.
lineaments/faults may have played a role
in the localisation of ruby associated In addition to the above, the international
magmas or fluids or the remobilisation market for Mozambican rubies is very
thereof. significant and increasing, principally
owing to the marketing efforts of
Mustang plans to prospect the areas Gemfields. The prices for Mozambican
along the SE-NW mineralisation trend rubies published by Gemfields are
aggressively through auger drilling and significant and even a modestly-sized
pitting. An access road will be built to the primary or secondary ruby discovery is
area currently being mined by artisanals considered by Mustang to have good
on license 8245L and ruby-bearing potential to be economically viable for the
gravels will be transported to the existing foreseeable future.
Mustang plant for processing and further
analysis as part of Mustang’s broader bulk Rubies from Montepuez are very
sampling programme. Due to the important to the trade because of the
prospectivity of this area and the quality large quantities and the wide range of
(and size) of the rubies being recovered qualities and sizes produced. Their
by local miners there, the company colours bridge the gap between those
intends to fast-track the development of from the classic sources of Burma (highly
this project. fluorescent, with low iron content) and
Thailand/Cambodia (weakly fluorescent,
Artisanal mining activity on License 8245L with high iron content). Whilst rubies owe
and high quality rubies: their red colour to chromium, their colour
is modified by the presence of iron, which
License 8245L has extensive artisanal reduces the chromium-caused
activity which has proven secondary ruby fluorescence.
mineralisation within three kilometres of
the company’s Alpha ruby deposit. The An interesting aspect of rubies from the
images that follow show identified sites of amphibole-related deposit near
artisanal activity identified from a Montepuez is their range of iron content,
heliborne survey of the area in February from nearly as low as Burmese marble-
2017. These sites have also been type rubies to as high as rubies found in
“ground-truthed” by independent basalt-related deposits along the Thai-
consultant and ruby exploration specialist Cambodian border. This means they can
Paul Allan, who noted there were potentially suit the tastes of a range of
approximately 50 to 100 active artisanal different markets.
miners. The rubies that the artisanal
miners presented to Allan were high-

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Details of acquisition of 65% interest in during the bulk sampling programme will
License 8245L: be used to repay the loan balance for the
bulk sampling program and once that loan
The material terms of the proposed is repaid profits will be distributed in
acquisition are as follows: proportion to the shareholdings in the
entity holding the license. Loans made
(a) Parties: - Mustang Resources Ltd subsequently by MUS for other purposes
(“Purchaser” or “MUS”) and Regius (e.g. commercial scale mining operations)
Resources Group Ltd. (“Regius” or will be repaid by distributing 50% of the
“Vendor”) revenues generated from the sale of
rubies recovered from the license to
(b) Interest being acquired: A 65% repayment of the loan with the remaining
shareholding in an entity incorporated 50% distributed proportionately to
specifically to hold the license (SPV) with shareholders.
the remaining 35% held by the current
license holder (SLR Mining Lda) which is (f) Put option: SLR Mining Lda will have
contractually obligated to transfer the the right to sell its shareholding in the
license to the SPV. SPV to MUS at any time after
identification of a mineable resource at a
(c) Consideration: 30,000,000 MUS price to be determined by an independent
Ordinary Shares (escrowed for 24-months expert.
from date of issue) and US$100,000.
(g) (Decision to mine payment): MUS will
(d) Conditions Precedent: The conditions be required to pay SLR Mining Lda (the
precedent which must be satisfied (or current license holder) US$1,500,000
waived) prior to MUS completing the following the successful completion of the
proposed acquisition include, due 150,000-ton bulk sampling program which
diligence, ASX Listing Rule 11.1.3 not leads to the decision to start full-scale
applying, all necessary regulatory, mining.
shareholder and third party approvals in
Australia and Mozambique to allow MUS (h) (Decision not to proceed): Should
to lawfully complete the acquisition and an MUS decide not to proceed with the
independent expert opining that the project it agrees to sell its interest in SPV
proposed acquisition is fair and to SLR Mining Lda for MZM10 (0.02
reasonable or not fair but reasonable for cents) and write off all shareholder loans.
MUS’ shareholders not associated with
the transaction. (i) (No Board changes): There will be no
change to the board of MUS as a result of
(e) Funding commitment: MUS will be the proposed acquisition but SLR Mining
required to sole fund all expenditure for Lda will have the right to appoint one of
the full duration of the project by providing the three directors on the SPV and
a loan to the newly incorporated entity receive a US$3,000 per month consulting
established to hold the license (65% held fee effective from 1 June 2017.
by Mustang and 35% held by SLR Mining
Lda owned by a Mozambican individual). Further details regarding the agreement
100% of the revenues generated from the will be included in a Notice of Meeting to
sale of rubies recovered from the license be dispatched to shareholders

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immediately following a signed Mozambican experts condemn gaps in


Independent Experts' Report (IER). studies on environmental impacts of
projects
Strategic placement to institutional and
sophisticated investors: Mozambique has attracted a great deal of
interest from foreign investors, especially
In addition to the transformational in the area of mineral resources in the
acquisition detailed above, Mustang has central and northern regions of the
received firm commitments from a select country, raising expectations of growth of
group of new and existing institutional and the national economy.
sophisticated investors for a placement to
raise up to 5.88-million through the issue But communities affected by large
of approximately 76.4-million new ordinary projects have benefited very little from
shares at an issue price of 7.7 cents per them in the past.
share (“Placement”). The issue price
represents a 10% discount to the Non-governmental organisations such as
company’s 15-day VWAP. Environmental Justice (Justiça Ambiental)
and Living Earth Centre (Centro Terra
The Placement will be completed in two Viva) explain this failure as the result of
tranches with approximately 68.6-million deficiencies in the environmental impact
shares (approximately 5.28-million) to be assessment process.
issued in the first tranche (Tranche 1)
under the company’s existing capacity Determination to implement these projects
pursuant to ASX listing rule 7.1. at any cost and non-observance of legal
Settlement of Tranche 1 is expected to instruments by the government are at the
occur on or around Wednesday, 8 March source of this situation, according to
2017. environmentalist Daniel Ribeiro of Justiça
Ambiental.
Given the strong demand from long-term
shareholders, an additional 7.8-million “The first step should be to know if the
shares will be issued in a second tranche project is feasible, and only then to
also at 0.077 per share (Tranche 2), promise something”, he says. “The other
conditional on shareholder approval at a gap has to do with the market, because
general meeting expected to be held by the investor pays for the study, and as
early April 2017 to approve the you can imagine, whoever pays has a lot
acquisition. (“EGM”). of say over the final product”.

Funds raised pursuant to the Placement Justiça Ambiental says that if this
will be used to meet costs associated with scenario continues, the communities
the acquisition of the 65% interest in ruby affected by projects will be damaged even
license 8245L, for increased bulk more. “To continue to pollute our rivers,
sampling activities and to fund an reducing fishing and the fertility of our
accelerated auger drilling programme at soils, will have a huge impact on the
the Montepuez Ruby Project, and for health and life of Mozambicans”, the
general working capital purposes. environmentalist said.

Source: ABN Newswire

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Another environmental non-governmental Mavuzi and Chicamba power stations:


organisation, the Terra Viva Centre, US$120-million rehabilitation complete
argues that communities should be made
aware of benefits before implementing The Mavuzi and Chicamba hydro-electric
any project. power stations, on the Revue River (in
Manica Province), have been delivered to
“Most of the communities that are affected the publicly owned electricity company,
by these projects have no idea of their EdM, after complete rehabilitation.
rights, for example. What we in Centre
Terra Viva call social preparation, before Rehabilitation and modernisation of the
projects start, is extremely important. One two power stations was in the hands of a
example of this is Palma. When the consortium of French and Norwegian
project started the people were prepared companies. It cost around US$120-million
in advance, and already there has been a and took about three years. Although they
greater interaction and action by these will not be formally re-inaugurated until
people in defence of their rights and their late March, they are already in use.
lands”, Pereira explained. The study of
environmental impact assessment According to the project co-ordinator,
processes in Mozambique is called ‘For Abraao Rafael, who is also EdM’s deputy
Only the Englishman to See’. director for electrification and projects, the
final certificate testifying to receiving the
Source: VOA Português stations after their rehabilitation was
signed on 20 February.
Energy:
The rehabilitation dealt mainly with the
Mozambique can be self-sufficient in generator groups, turbines, cooling
electricity by 2021 systems, command and control
equipment, and fire-fighting gear.
Mozambique’s Temane power station and
the Temane-Maputo power transmission EdM uses Chicamba and Mavuzi to
line are expected to start operating by supply electricity to Manica and the
2021. The construction of the two major neighbouring province of Sofala, and the
developments, financed by the World power is only sufficient with the
Bank, government of Norway and other interconnection with the Chibata sub-
co-operation partners, is planned to start station which draws its power from the
next year and will cost US$1.2-billion. Cahora Bassa Dam on the Zambezi.

The country’s current electrical energy The modernisation was important in order
demand is 900 megawatts (MW), while its to prolong the life of the two power
current supply capacity is 800MW. EdM stations, which were in danger of shutting
says that the forthcoming entry into down entirely due to the obsolescence of
operation of the Chicamba and Mavuze their components. Because the original
hydroelectric dams, together with the parts no longer exist on the international
Temane power station, will solve the market, the consortium had to design and
state-owned company’s supply deficit and make new parts.
give it a surplus to export.

Source: TVM

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EdM claims that the work has given breaking rails which could result in
Chicamba and Mavuzi an additional 30 derailments”.
years of useful life.
Damage of various kinds:
The work also allows the stations to
generate almost 20MW more than they Mucave also warns that worse could
could prior to the rehabilitation. Thus, the happen: “We could probably see loss of
maximum generating capacity at life, which we do not want at this
Chicamba has risen from 38 to 44 moment”. In addition to the gravel theft,
megawatts, and that at Mavuzi has risen members of local communities are also
from 30 to 41 megawatts. accused of stealing the glass from train
carriage windows by authorities.
Source: Agencia de Informacao de
Moçambique The district administrator warned that acts
of vandalism are slowing the development
Transport, Construction & of the province. Mussa appealed to
Development Projects: community leaders for greater vigilance. “I
want to make another request to the
Gravel theft endangers railway in entire community leadership of the district
northern Mozambique of Lichinga and the city together to ensure
that our railway is not vandalised,
People living near the Lichinga-Cuamba because we bear the prime responsibility,
line (Niassa Province) have been as those who have received this great
removing gravel from along the railway to railway infrastructure here in Niassa”.
use in private construction works. The
district administrator, Alberto Mussa, said Source: Deutsche Welle
that the most recent case occurred in the
village of Micava in Lichinga. Maputo-Catembe crossing: ferry-boat
Bagamoyo breaks down again
“We are very concerned because we have
noticed that in our part of Lichinga, The Bagamoio ferry boat linking the city of
especially near Mitade, there is sabotage Maputo with the municipal district of
happening with the removal of gravel from KaTembe has been out of action since the
along the railway line, which can only morning of Monday 27 February, limiting
damage us ourselves”, he says. vehicle crossings between the two points.
According to an employee from
Corredor de Desenvolvimento do Norte – Transmarítima, the company that
which owns the railway – is also manages the vessel, the breakdown
concerned. Line supervisor Carlos occurred early on Monday morning after
Mucave, told Deutsche Welle Africa that the vessel had made a round trip.
the ongoing gravel theft was dangerous
and could have “drastic consequences” Jornal Notícias reported that on Monday
for the railway. the vehicle crossing was being made by
the Mpfumo, a vessel that falls short of
“Once the ballast was removed from the responding completely to users’
railway line”, he explains, “energy is no requirements, causing long lines of
longer dissipated and hits the railroad vehicles waiting to cross the bay.
platform directly, damaging the platform,

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The Bagamoyo has been in operation The company invested nearly US$480-
since 1972 and has broken down million in a first phase and has announced
frequently over the past two years. It plans to open new plantations in Manica.
regularly operates with only one of its two The aim is to increase exports to 7,000
engines in service, which does not allow tons by 2021. Westfalia employs more
full utilisation of its 208-passenger than 100 workers in Manica and also
capacity. produces lychees.

Source: Jornal Notícias Source: MacauHub

ETM reduces number of buses President Nyusi visits Tete poultry


producer
The Municipal Public Transport Company
of Matola (Empresa Municipal de On Saturday 25 February, President Filipe
Transportes Públicos da Matola, ETM) Nyusi urged the country’s poultry
has reduced the number of buses in producers to work towards national self-
circulation in a bid to cut down on financial sufficiency in chickens. He was speaking
costs amidst the current economic crisis during a visit to a large poultry
in the country. The lack of money to buy undertaking, the Aviario Paula, in the
fuel is the main reason behind ETM’s Samora Machel neighbourhood on the
decision. Buses will be available during outskirts of the western city of Tete.
peak times in order to transport
commuters and students. President Nyusi noted that, although it is
not easy to breed poultry in Tete, due to
Source: Jornal Notícias the high temperatures prevalent in this
province, Aviario Paula has been making
Agriculture & Fishing: efforts to supply the local market with
Mozambican chickens.
Mozambique to export avocados to
Europe This poultry company has been in
business since 1988. It started with just
The company Westfalia Fruto one pavilion, with the capacity to hold
Moçambique has announced that it will 2,500 chickens. But today it has 10
export avocados produced in the central pavilions, and the newest can hold 11,000
province of Manica to the international chickens.
market and especially France. Westfalia
consultant Manuel Roriz said that the first The company has its own semi-automatic
consignment of 400 tons could be ready slaughterhouse, with the capacity to
for export to France in March. slaughter 2,000 birds a day. Every month,
the company produces an average of
Westfalia Fruto Moçambique is an 44,000 chickens. It employs about 80
agricultural subsidiary of the South African workers.
group of the same name. It has been
operating in Manica Province for two Paula Carvalho, co-manager of the
years and occupies an area of about 250 company, told Agencia de Informacao de
hectares. Moçambique that this year the plan is to
increase production to 64,000 chickens a

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month. She says the company intends to “Do not make culture and tourism the
build a further two poultry pavilions, install government’s burden. We have a lot to
a factory to produce chicken feed, and an carry. We want to find solutions to the
egg incubator. President Nyusi praised calamities, build bridges, roads … No. It is
Aviario Paula, for its ability to overcome a Ministry that has and should not be
day-to-day difficulties, and to survive and borne by anyone,” President Nyusi
grow. He also expressed his gratitude to warned. The President reminded those
the people of Tete for their commitment to who run the culture and tourism sector
hard work. that they are not there just to take office,
because “anyone can take office. But to
Source: Agencia de Informacao de assume [office] means to understand the
Moçambique mission and to exercise. You have no
other authorisation if you do not make a
Tourism: difference”.
“Do not turn Culture and Tourism into President Nyusi urged the institution to
the government’s burden” – President become sustainable. For the President, it
Nyusi is not justifiable that, among the diverse
tourist resources in the country, the
On Wednesday 1 March, Culture and
culture and tourism sector cannot bring
Tourism Minister Silva Dunduru received
about satisfactory gains. But there were
the President on his visit to the Ministry,
not only complaints. There was advice as
guiding him around the various
well. Or rather, lessons for Minister
departments as he learned about its
Dunduru on how to run a sector such as
functions. The President was briefed
culture and tourism. President Nyusi said
about the role of cultural and creative
that the Ministry of Culture and Tourism
industries, and inspected some of the
should get closer to the architects of
institution’s books, recordings and
culture in order to encourage them to
manuals.
develop the Mozambican cultural mosaic.
President Nyusi visited the various
The President said that the work being
departments from culture to tourism, and
carried out by the National Inspectorate of
heard about programmes developed to
Economic Activities (Instituto de
promote tourism, a sector that in 2015
Actividades Económicas, INAE) should be
contributed about 2.5% to the national
the responsibility of the Ministry. “The
economy. Finally, the President directed
work being done by the National
the Extraordinary Consultative Council of
Inspectorate of Economic Activities is your
the Ministry of Culture and Tourism,
job”, President Nyusi said.
where he expressed his misgivings.

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The Ministry of Culture and Tourism is the President Nyusi stressed that the Tete
fourth to be visited by the President after Mall will help establish business linkages
the Ministries of Agriculture and Food in the chain of agricultural production in
Security, Public Works, Water Resources the Zambezi Valley. He claimed that the
and Housing and Ministry of Mineral new mall will not compete with small Tete
Resources and Energy. traders, but will operate as a partner and
an alternative source to supply the rural
Source: O País/TVM zones of the province. President Nyusi
believed that the McCormick group will
Other: help transform Tete into a modern city,
which can offer its residents a range of
President Nyusi inaugurates largest
good quality services and products that
shopping centre in Tete
are up to international standards.
On Friday 24 February, President Filipe
Tete provincial governor Paulo Auade
Nyusi urged national and foreign
said Tete consumers expect to find on the
businesses to invest in retail trade
shelves of this new shopping centre
throughout the country. He was speaking
Mozambican products, such as the
in the western city of Tete at the
potatoes grown in the Tete districts of
inauguration of a shopping centre that is
Angonia and Tsangano. Agencia de
the largest in Tete Province. Named
Informacao de Moçambique found that
simply the “Tete Mall”, the centre covers
Angonia potatoes are indeed on sale in
27 shops, plus administrative services, a
Choppies, as is locally caught fish
car park, and other public utilities.
(tilapia). On his arrival at Tete Airport,
The Mall belongs to the South African President Nyusi urged his listeners to
group, McCormick Property Development, maintain vigilance in observing the truce
and the shops include branches of the between the Defence and Security Forces
South African supermarket chain and the militia of the rebel movement
Shoprite, the Botswana-based chain Renamo.
Choppies, the South African clothing store
Thanks to phone conversations between
PEP, and the fast food outlet, Kentucky
President Nyusi and Renamo leader
Fried Chicken (KFC). The Mall employs
Afonso Dhlakama, the Renamo truce took
600 Mozambican workers.
effect on 27 December. Initially only for a
Addressing the inauguration ceremony, week, it was extended for a further two
President Nyusi said he was pleased to months (until 4 March). The truce has
learn that McCormick intends to expand to held, and there have been no further
other parts of the country, including reports of Renamo ambushes on the
Pemba (Cabo Delgado Province), and the roads or of clashes between Renamo and
southern city of Matola. He added that he government forces.
would like to see this company open
President Nyusi told the crowd at the
businesses in Lichinga, (in Niassa
airport that all Mozambicans should be
Province), and in Mocuba (in Zambézia
vigilant in preserving the current climate of
Province).
peace. “I’ve come to follow the
environment of peace”, said the
President. “I want to confirm whether,

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here in Tete, what I discussed with the domestic workers and 72 foreign
Renamo leader, about the need to halt nationals. In addition to the illegal
military hostilities, is being observed or employment of foreign workers, the
not”. He stressed that, for the lives of campaign revealed 149 other violations of
Mozambicans, a definitive end to politico- various labour standards, 15 of which
military tensions is of extreme importance, deserved the issuing of notice (meaning
and is the way to ensure the development they were sanctioned), while the rest were
of the country. given written warning.

Source: Agencia de Informacao de The audit helped to identify 94 companies


Moçambique and institutions who together owed the
INSS a total value of MT3.2-million (about
Labour Inspectorate suspends 13 US$43,000) already deducted directly
foreign workers from workers’ salaries for social purposes.
A statement from the Ministry of Labour,
The General Labour Inspectorate (IGT) Employment and Social Security
has suspended, with immediate effect, 13 (MITESS) quoted by Agencia de
foreign citizens found to be working Informacao de Moçambique notes that, of
illegally for a number of Mozambican this number, it had so far proved possible
companies. The action is the result of an to recover some MT1.6-million from 60
inspection carried out by the IGT across taxpayers.
103 companies operating in the country,
employing 1,627 workers, including 1,555 Source: Folha de Maputo

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POLITICS
Afonso Dhlakama announces Renamo demands approval of
extension of the truce for another two decentralisation this quarter
months
“The peace of Mozambicans cannot wait
During a telephone conference held on any longer”, the head of the Renamo
the morning of Friday 3 March, Renamo parliamentary bench declared on Monday
leader Afonso Dhlakama announced that 27 February in parliament, insisting on
the truce has been extended for another approval of decentralisation measures
two months to allow further peace talks and the resolution of pending military
with President Filipe Nyusi’s government. issues this quarter.
“As of midnight on 4 March, a new truce
takes effect for a period of two months – The decentralisation package will allow for
until 4 May”, said Dhlakama. the appointment of Renamo governors in
provinces where the party won the most
“Peace is sacred”, Dhlakama told votes in the 2014 elections, while military
reporters. “We intend to achieve true issues include the integration of Renamo
peace, the definitive peace, where men into the government Defence and
Mozambicans can enjoy free circulation Security Forces.
and develop the economy of the country”.
The Renamo leader said that he hoped “We would like this house [the National
that the next 60 days would see “serious Assembly] to approve a legislative
negotiations” that should result in a package on decentralisation and defence
legislative proposal to parliament over the and security issues seriously and quickly,
decentralisation of state administration. and in this first quarter,” head of Renamo
parliamentary bench, Ivone Soares, said.
During the conference, Dhlakama
revealed that permanent contact exists In her speech, quoted by Mediafax,
between himself and President Filipe Soares said that her party was genuinely
Nyusi, and assured that the peace committed to the restoration of effective
process is well underway. Dhlakama also peace in Mozambique, and that she
disclosed that a new (unnamed) figure of hoped that the government would also
“recognised international merit” has joined find it in its interest to complete the
the Contact Group, which is already process.
carrying out its functions in Mozambique.
Friday’s announcement raises hopes of “We want to participate in the 2018
an end to years of tit-for-tat violence. elections with the decentralisation
package already approved by this great
A long-term deal would strengthen house”, said Soares, whose party believes
President Nyusi’s position ahead of a it will leverage development in the
conference of the ruling Frelimo Party in country.
September at which he is expected to be
re-elected leader despite a high-profile The current session of the Assembly of
debt scandal hanging over him. the Republic ends in early May.

Source: O País/Zitamar News/Reuters Source: VOA Português/Mediafax

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President Nyusi appoints ‘Contact Commission (CNE). Macuiana headed the


Group’ for peace talks Renamo side in the negotiations that
produced the September 2014 agreement
On Tuesday 28 February, President Filipe on a cessation of hostilities, an agreement
Nyusi announced the creation of a that Renamo refused to implement.
‘Contact Group’, formed by several
ambassadors which will support the For the working group on military
attainment of a “sustainable peace”. questions, President Nyusi appointed two
retired army officers, and veterans of the
A press statement from President Nyusi’s independence war, Gen Armando
office explained that this group has been Panguene and Col Ismael Mangueira.
set up “in the framework of the dialogue to Panguene is also one of the country’s top
achieve effective and lasting peace”, and diplomats who has served as
in the wake of the phone conversations Mozambican Ambassador to Pretoria,
between President Nyusi and Renamo Lisbon, London and Washington.
leader Afonso Dhlakama.
The Renamo members of this group are
The statement says that the Contact parliamentary deputy Andre Magibire and
Group “will provide co-ordinated financial Leovilgildo Buanancasso, who is currently
and technical assistance, and carry out a member of the Council of State, a body
other tasks as indicated in their terms of that advises the President of the Republic.
reference”.
A few days later, President Nyusi
The Contact Group will be chaired by the announced that he had issued invitations
Swiss ambassador (currently Adrian to international bodies to witness the
Hadorn), and co-chaired by the American resumption of dialogue between the
ambassador (Dean Pittman). The other government and Renamo. He said that in
five members of the group are the his phone contacts with Dhlakama, the
Ambassadors of China, the European two had reached agreement on the
Union and Norway, and the High appointment of “international advisors”.
Commissioners of Botswana and of the
United Kingdom. It was assumed that these would be
foreign experts who would travel to
The Contact Group, which was scheduled Maputo for meetings. But instead
to start work this week, is intended to President Nyusi has appointed
advise the two working groups appointed ambassadors who are already on location,
last month by President Nyusi and and who will not need to travel to and from
Dhlakama, to work on decentralisation other countries in order to attend
and on military issues. meetings.

President Nyusi appointed two academics President Nyusi made it clear in February
and jurists, Albano Macie and Eduardo that the “international advisors” will not be
Chiziane, to the working group on mediators, and Dhlakama seems to have
decentralisation. Renamo’s appointees to accepted this, thus abandoning Renamo’s
this group are Saimone Macuiana and longstanding demand for foreign
Maria Joaquina, who are both former mediation.
members of the National Elections

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In the second half of 2016, a large team of He was upbeat about the prospects for
international mediators struggled, without the Mozambican economy, and believed
much success, to achieve consensus that all the conditions exist to meet this
between Renamo and government year’s target of 5.5% growth in the GDP.
delegations. Inflation was now declining, and there was
a slow recovery in the value of the
The mediators could not even secure a metical.
ceasefire between Renamo and
government forces over the Christmas Prime Minister Rosário noted that the
holiday. metical had been at around 80 to the US
dollar in October, but has now recovered
Yet phone contacts between President to 70 to the dollar.
Nyusi and Dhlakama, without any foreign
involvement, led to Renamo declaring a On Wednesday morning, the country’s
truce that took effect on 27 December. largest commercial bank, the Millennium-
BIM was quoting the metical at 68.55 to
The truce has held, and there have been the dollar.
no further reports of Renamo ambushes
on the roads or of clashes between the After sharp drops in 2016, Mozambique’s
Renamo militia and government forces. net foreign currency reserves have risen,
and Prime Minister Rosário said they now
At the opening of the current sitting of the stood at an amount sufficient to cover five
National Assembly of the Republic, on months of imports of goods and non-factor
Monday, the head of the Renamo services.
parliamentary group, Ivone Soares (who is
Dhlakama’s niece) said she expected the The Prime Minister believed that the
truce to be “definitive”. government is making good progress in
re-establishing confidence among the
Source: Agencia de Informacao de country’s international partners, following
Moçambique the crisis in mid-2016, when undeclared,
government-guaranteed loans in excess
On the right path to peace, says Prime of US$1-billion were discovered.
Minister
Those loans, to the security related
“We must all work for peace to be lasting”, companies Proindicus and MAM, led the
declared Mozambican Prime Minister IMF to suspend its programme with
Carlos Agostinho do Rosário at a Maputo Mozambique, and all 14 partners who
press briefing on Wednesday 1 March. provided direct support to the
Mozambican budget suspended all further
“Indications are that we are on the right
disbursements.
path”, he said, and there was movement
“towards converting the current truce into Key to restoring trust is an independent
a definitive ceasefire”. audit of Proindicus, MAM and a third
company that enjoyed a massive,
“We are all called upon to join our efforts
government guaranteed loan, Ematum.
to attain peace”, declared Prime Minister
That audit is in the hands of the US
Rosário.
company Kroll, which enjoys a reputation

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as the world’s foremost forensic audit President Nyusi urges “understanding


company. and humility”

“We all want the audit completed on time On Wednesday 1 March, President Filipe
(by the end of March)”, said Prime Nyusi urged the members of two working
Minister Rosário. “We are awaiting the groups set up under the dialogue between
results, but negotiations with the IMF are the government and Renamo to work
under way”. within the same spirit that had guided the
consensus achieved between himself and
Mozambique has been quite unable to Renamo leader Afonso Dhlakama.
service the Ematum, Proindicus and MAM
debts, and that seems unlikely to change “We want you to replicate the
in the near future. “We will negotiate with understanding and humility with which we
the creditors to restructure these debts”, have been working, though this doesn’t
sad Prime Minister Rosário. “We want to mean that there are no different opinions”,
honour our debts, but in a balanced way”. said President Nyusi.

Asked about an apparent conflict of He was speaking at a meeting in Maputo


interest involving Transport Minister with the members of the two specialist
Carlos Mesquita, Prime Minister Rosário working groups, and with the “Contact
said there are appropriate institutions for Group”, formed by seven ambassadors
dealing with such matters. resident in the capital, which will play an
advisory, technical and financial role.
The company TCM was one of four
companies which, in February, were The country is currently enjoying a truce:
awarded transport contracts by the military hostilities came to a halt, as from
country’s relief agency, the INGC. The 27 December, after phone conversations
TCM contract is worth MT20-million between President Nyusi and Dhlakama,
(about US$292,000). The Minister is one who has not yet left his headquarters in
of the owners of the Mesquita Group, the central district of Gorongosa (Sofala
which is the main shareholder in TCM. Province).

Minister Mesquita himself has refused to President Nyusi told the Wednesday
answer accusations in the media that his meeting that in his phone talks with
involvement in TCM is a conflict of Dhlakama, there were disagreements,
interests, and that he had violated the Law “but with arguments and thoughtful
on Public Probity. considerations, we reached conclusions”.

Prime Minister Rosário said this was a In his latest contacts with Dhlakama, the
matter, not for the Prime Minister, but for two had agreed that the two groups, one
the ethics commissions established under on decentralisation and the other on
the law. But if it were proved that Minister military questions, can begin working
Mesquita had broken the law there would “because the Mozambican people are in a
be consequences, since “nobody is above hurry to live definitively in peace”.
the law”, Prime Minister Rosário warned.
The Contact Group is chaired by the
Source: Agencia de Informacao de Swiss Ambassador (Mirko Manzoni), and
Moçambique

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co-chaired by the American Ambassador still a long way to go before this process
(Dean Pittman). The other five members can be owned by all Mozambicans”, he
of the group are the ambassadors of added. He did not regard decentralisation
China, the European Union and Norway, as a matter solely for the government and
and the High Commissioners of Botswana Renamo, noting that there are other
and of the United Kingdom. voices in society with opinions on the
matter, and “the specialist group has
“We have to find a way out so that we all sufficient capacity and competence to
feel proud”, said President Nyusi, respect these voices”.
addressing the ambassadors in particular.
“We also think the time has come to deal Source: Agencia de Informacao de
with the military questions of Moçambique
disarmament, demobilisation, re-insertion,
and monitoring. We will need a lot of “President Nyusi is leading a peace
resources which we will not be able to process with transparency” – Sibindy
mobilise on our own. We are counting on
our partners who always helped us in The leader of the Independent Party of
previous processes”. Mozambique (Partido Independente de
Moçambique, PIMO), Yaqub Sibindy, says
President Nyusi said that involvement by that by inviting ambassadors to play the
ambassadors resident in Maputo would be role of observers in the peace
cheaper than relying on foreign mediators negotiations with Renamo, the President
based outside the country. The dialogue has proven that he has no intentions of
with mediators last year had not been bad faith against Renamo leader Afonso
“very productive” and had suffered from Dhlakama.
“interference”.
On his Facebook page, Sibindy said that:
In any case, he added, “we saw that the “We were very apprehensive of certain
international mediators always consulted opportunists who could have taken
the people living here. It’s good when we advantage of President Nyusi’s diplomacy
are working directly with people who live to reach Dhlakama and to kill him, just as
here, know the reality and have authority”. they tried to do on 9 October 2015, in the
City of Beira!” Sibindy said that, by inviting
The task of the Commission on military the seven ambassadors “of friendly
matters, he continued, should include countries” and the representative of the
mechanisms to monitor a definitive European Union in Mozambique,
cessation of hostilities. So far, despite the President Nyusi is proving to
lack of any national or international Mozambicans that his intention to
observation, the truce has held, and there negotiate peace with Dhlakama is clear.
were no reports of serious violations.
“We want this to be definitive and not just For the leader of PIMO, the head of state
another pause”, President Nyusi stressed. has shown that anyone who disobeys his
orders and puts Dhlakama’s life in danger
The task of the group on decentralisation, will be severely punished by the
the President said, was to draw up bills or Mozambican people, backed by the
constitutional amendments to be put powers of the Commander-in-Chief.
before the National Assembly. “There is

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The PIMO suggested that the President of Thanks to phone conversations between
the Republic also invite the ambassadors President Nyusi and Renamo leader
of the friendly GCC countries to join the Afonso Dhlakama, the Renamo truce took
seven ambassadors, namely effect on 27 December. Initially only for a
Ambassadors from Saudi Arabia, the week, it was extended for a further two
United Arab Emirates and the Arab months. The truce has held, and there
Republic of Egypt, accredited in Maputo. have been no further reports of Renamo
ambushes on the roads or of clashes
Sibindy maintains that, if President Nyusi between Renamo and government forces.
“were playing bad faith against Dhlakama
he would not invite ambassadors from President Nyusi told the crowd at the
some of the world’s strongest countries to airport that all Mozambicans should be
join the negotiation process”. He further vigilant in preserving the current climate of
stated that: “Because the President has peace. “I’ve come to follow the
courageously escaped from his ‘political environment of peace”, said the President.
hijackers’ … the PIMO appeals to all “I want to confirm whether, here in Tete,
Mozambicans to publicly express their what I discussed with the Renamo leader,
support for President Nyusi” in his efforts about the need to halt military hostilities, is
to achieve peace. being observed or not”.

Likewise, PIMO and its leader also urge He stressed that, for the lives of
Mozambicans to prepare a “crown of Mozambicans, a definitive end to politico-
flowers” to decorate Afonso Dhlakama on military tensions is of extreme importance,
the day he leaves his hiding place, for and is the way to ensure the development
having demonstrated that the strategy for of the country.
achieving peace is through dialogue and
mutual respect between the parties. Source: Agencia de Informacao de
“Dhlakama deserves the support of all Moçambique
Mozambicans, since he avoided an
extensive offensive guerrilla warfare President Nyusi calls for the
throughout the whole country, limiting the preservation of peace in Lent
party to defensive war…”.
On Thursday 2 March, President Filipe
Source: Folha de Maputo Nyusi called on Mozambicans to be
guided by the values of peace and
President Nyusi calls on Mozambicans national reconciliation as a way of
to maintain vigilance in observing the observing the spirit of Lent, which began
truce on Wednesday.

On his arrival at Tete airport on Friday 24 “That the fundamental values of


February, President Filipe Nyusi urged his Christianity, such as love of the
listeners to maintain vigilance in observing neighbour, forgiveness, reconciliation and
the truce between the Defence and peace, transcend the religious domain to
Security Force and the militia of the rebel be guiding values of Mozambican society,
movement Renamo. because they are shared by all of us,
regardless of our differences, religious or

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otherwise”, President Nyusi said in a “Our debates”, she urged, “should seek
message to the media. only the national interest which in the first
place means definitively silencing the
The head of state said that Lent should be guns. We reaffirm that all Frelimo deputies
a time of deep reflection on the values are ready to place all their skills in the
and principles of Christianity for service of achieving the legitimate desire
Mozambicans. of the people”.

President Nyusi also called for the The truce had already borne fruit, she
occasion of Lent to inspire Mozambicans noted, in that the free circulation of people
in the hope and assurance of peace, and goods was now possible throughout
removing all factors that undermine the county, schools which had been
healthy, harmonious and peaceful closed were reopening, and health units in
coexistence. zones of conflict were functioning again.
Peace in Mozambique has been under “Frelimo argues that peace is the top
constant threat in recent years due to priority, and that only permanent, open
fractures between Frelimo, the ruling and frank dialogue, free of
party, and Renamo, the main opposition preconceptions, will contribute to
party. consolidating the unity in diversity which
characterises us and enriches us as a
Between 2013 and the end of 2016, the people”, said Talapa.
country was plagued by violence between
the Defence and Security Forces (FDS) She urged all Mozambicans, political
and the armed wing of Renamo, but since parties and civil society organisations “to
last December a truce declared by the contribute to the re-establishment of
government and the leadership of the peace, in the spirit of reconciliation,
main opposition party has been in force. tolerance and national unity”.
Source: Lusa Her opposite number, in the Renamo
parliamentary group, Ivone Soares,
Assembly: all parties call for “effective claimed that the truce was Dhlakama’s
peace” in Mozambique initiative, and that she now expected it to
become “definitive”. (Since she is
In a rare expression of unanimity, all three
Dhlakama’s niece, her words may well
political parties represented in the
reflect his thinking).
National Assembly, on Monday expressed
their hope that the current truce will “The truce has brought great hope to all
become a definitive peace. the Mozambican people”, she said. “This
country can advance if we opt for a
Speaking at the opening session of the
genuine peace, if we promote the
first sitting this year of the Assembly, the
democratic rule of law, based on strong
head of the parliamentary group of the
and non-partisan laws and institutions”.
ruling Frelimo Party, Margarida Talapa,
declared that Mozambicans were looking Soares stressed the need for
to the Assembly to ensure that in this decentralisation, one of the main themes
sitting “the country will at last find a solid in last year’s negotiations between the
platform for effective peace”.
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government and Renamo. But she did not national reconstruction, and reinvent the
mention the longstanding Renamo claim state, in accordance with the values of
that it has the right to rule the provinces democracy, freedom, political pluralism
where it secured a majority of votes in the and the rule of law”.
2014 general elections.
“There is a national consensus that peace
Instead Soares said “we believe that should not be conditional”, declared
decentralisation will allow the provinces to Simango. “Peace should be real and
be governed directly by the governors effective, it should be the property of all
which they will elect. This means bringing Mozambicans”.
democracy closer to the voters”.
The sustainability of peace and
This is a shift away from Dhlakama’s democracy, he argued, “necessarily
earlier position that Renamo would simply involves an inclusive national dialogue”.
appoint governors and other officials in Political dialogue must no longer be
the provinces it claims. restricted to the government and Renamo,
but should involve “all the live forces of
A completely new demand raised by society to establish commitment and
Soares is for a “provincial police force”. undertakings for a sustainable and lasting
The existing force, the Mozambique peace”.
Republic Police (PRM), would retain
responsibility “for the most serious Simango insisted that the Assembly “must
crimes”, while other policing matters legislate and establish norms conducive to
would pass into the hands of the the sustainability of peace, inclusion,
provincial forces. political participation and shared
economic development”. The MDM
Soares wanted the Assembly to pass believed that amending the Constitution
legislation on decentralisation and on the and the electoral legislation was crucial to
defence and security forces in this first this.
quarter of the year – which gives the
deputies slightly more than a month to Source: Agencia de Informacao de
reach consensus on a range of complex Moçambique
issues. Consensus is needed, because
changing the way in which the provinces Mozambican parliament places peace
are governed will require amending the agreement on agenda
constitution. Constitutional amendments
require a two thirds majority in the The main item on the agenda when the
Assembly, which no party can obtain on fifth session of the Assembly of the
its own. Republic commenced on Monday 27
February was peace and the debate on
Lutero Simango, the head of the decentralisation.
parliamentary group of the second
Ivone Soares, head of Renamo’s
opposition force, the Mozambican
parliamentary group, guaranteed that her
Democratic Movement (MDM), said the
party would prioritise peace.
current truce “should serve as a platform
to give peace back to Mozambicans so
that they can dream and work freely on

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For Frelimo, the priority in this session will Sing from the same page, President
be the disarmament of Renamo, “just as Nyusi urges Frelimo deputies
the Constitution of the Republic states”.
On Monday 27 February, President Filipe
“There is a huge effort, particularly by Nyusi, speaking in his capacity as
President Filipe Nyusi, for a definitive President of the ruling Frelimo Party,
peace and we as MPs will echo his words urged the Frelimo leadership and the
and actions”, said parliamentary Party’s parliamentary group “to sing the
spokesperson Edmundo Galiza Matos same tune”.
Júnior.
Speaking in Maputo at a meeting between
Although the MDM is not party to the Frelimo parliamentarians, members of the
dialogue preparing the decentralisation Party’s Political Commission and
package to be submitted to parliament, government members, President Nyusi
party leader Lutero Simango says he will expressed his satisfaction at the role
make the best possible contribution to played by the Frelimo parliamentary group
achieving peace. in ensuring that the National Assembly
approves key instruments for the
“The greatest concern of Mozambicans is development of the country. He pointed to
in fact to rescue peace, the peace that the approval of the government’s Five-
has to be truly effective, cannot be subject Year Programme for 2015-19, and the
to conditions, much less borrowed, hence annual Economic and Social Plans with
our parliamentary bench will continue to their respective budgets. These were
say that we all want an effective peace instruments that facilitated the speedy
which is real, we want peace for all development of the country, he claimed.
Mozambicans”, Simango said.
He stressed that the role of the Frelimo
Journalist and political analyst Luís parliamentary group is fundamental, since
Mazoio believes that the steps taken by without the approval of key planning and
the political leaders have created budgetary document “everything that the
conditions for parliament to start people ask for would be impossible to
discussing the decentralisation package. achieve”. “We cannot provide water or
electricity without the approval of our
“The latest signs are very encouraging, plans for governance”, he said. “When we
and while parliament may not be hear that this or that district doesn’t have
fundamental, it can serve as a notary and electricity, what that really means there
ratifier of the agreements”, Mazoio are only a few places without electricity,
explained, noting that “as happened on and that is thanks to the work that is being
other occasions, like the electoral done”.
package, when it reached Parliament it
was soon ratified”. The Monday meeting, President Nyusi
added, was an attempt “to bring still closer
The fifth parliamentary session runs until together the party leadership and the
11 May. parliamentary group. We want to create
the conditions for improving our working
Source: VOA Português
relations”. “We need to co-ordinate so that
we are all playing the same tune”, he

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declared, “and we need our orchestra to Mulembue claims President Nyusi will
make rehearsals such as this meeting”. be Frelimo candidate in 2019

“Quarrels sometimes arise, not because A meeting of the Frelimo parliamentary


of political differences”, he said, “but group ended on the night of Monday 27
because of unequal opportunities, and if February with a sudden declaration by
we discuss these aspects, we will be Eduardo Mulembwe, the former
making a contribution towards stabilising chairperson of the National Assembly, that
our people”. Frelimo will be at the side of President
Filipe Nyusi “until 2024”.
“We appreciate your willingness to
discuss these matters”, he told the This was a declaration that President
deputies, “and as a government we Nyusi will be the Frelimo candidate in the
assure you that we will remain open to co- next presidential election, scheduled for
operate. But also as a party, in whose 2019.
leadership you placed me, we shall do
everything to ensure a balance and to “In this boat, Comrade President is the
continue to work”. helmsman”, declared Mulembwe, in a
speech broadcast by the independent
The results of their discussions, he hoped, television channel STV. “We are saying
would lead to the success of the current that we set out on this boat in 2015 (when
sitting of the Assembly, which began on President Nyusi was sworn into office for
Monday morning. The sitting could be his first term, and we will be with you until
fraught with problems, since it may have we reach our port of destination in 2024”.
to decide on key issues in the negotiations
between the government and the Renamo The meeting of the parliamentary group
rebels – notably the question of how the was chaired by President Nyusi, in his
provinces are to be governed. capacity as President of Frelimo, and was
attended by members of the government
President Nyusi stressed the need for and of the Frelimo Political Commission. It
stability – both political stability, in terms was called to discuss the performance of
of securing a definitive peace, and macro- the Frelimo group and, in President
economic stability, including stabilising Nyusi’s words in his opening speech, it
inflation. was an attempt “to bring still closer
together the Party leadership and the
The head of the Frelimo parliamentary parliamentary group”, to ensure that they
group, Margarida Talapa, said that the are all “singing the same tune”.
party’s work in the Assembly had not been
easy, because of the very nature of the The meeting was not called to discuss
matters under discussion. “We have had who would be Frelimo candidate in 2019,
difficult sittings, because of the delicacy of and had no legitimacy at all to take such a
the materials”, she said. After the opening decision.
speeches, the meeting continued behind
closed doors. Under the Frelimo statutes, only the
Frelimo Central Committee can decide on
Source: Agencia de Informacao de the Party’s Presidential candidate. The
Moçambique Central Committee chose President Nyusi

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as candidate on 1 March 2014, less than term), and we will be with you until we
nine months before the election. reach our port of destination in 2024”.

The term of office of the current Central At a press conference, at the start of a
Committee runs out later this year, and a working visit to Frelimo organisations in
new Central Committee will be elected at Maputo city, Machava dismissed
Frelimo’s 11th Congress, scheduled for Mulembue’s remarks as irrelevant. Cited
September. Whether Mulembue acted by the independent television station STV,
alone, or was backed by other members Machava said that Frelimo’s main concern
of the parliamentary group, he certainly right now is to prepare for its eleventh
had no right to pre-empt a decision of a congress, scheduled for September, and
Central Committee that has yet to be not to discuss possible candidates for the
elected. presidency.

Other Frelimo members are also entitled Mulembue’s statement “is just the opinion
to put their names forward for of one of our members”, he said.
consideration. In 2014, four other
candidates stood in the Central It would not be at all surprising if Frelimo
Committee election, which took two did indeed run President Nyusi for a
rounds, with President Nyusi beating second term, but, under the Party’s
former Prime Minister Luísa Diogo in the statutes, that decision can only be taken
second round. by its Central Committee, and other party
members must be given the opportunity to
Source: Agencia de Informacao de put their names forward.
Moçambique
A new Central Committee will be elected
Frelimo general secretary denies at the September Congress. The
Mulembue Congress will also elect the Party
President, and is likely to confirm
The declaration on Monday night by President Nyusi in the post.
Eduardo Mulembue, the former
chairperson of the National Assembly, that Source: Agencia de Informacao de
President Filipe Nyusi will run for a Moçambique
second term of office in 2019, is just his
own view, and is not the official position of Action needed this month on elections
Frelimo, the party’s general secretary,
Eliseu Machava, said on Wednesday 1 The election laws involve very long time
March. scales, so action is needed now for the
2018 municipal elections. Elections are in
At the end of a meeting of the Frelimo the first two weeks of October, and the
parliamentary group, chaired by President specific date must be set by the Council of
Nyusi in his capacity as President of the Ministers 18 months in advance –
party, Mulembue had declared “In this effectively by the end of March 2017.
boat, Comrade President is the
helmsman. We are saying that we set out The registration law requires that voter
on this boat in 2015 (when President registration be done in the six months
Nyusi was sworn into office for his first after the date of the election is marked –
that is, April-September this year. But the

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national census will take place in August, activities”, Ossufo Francisco, a Renamo
and it will be extremely difficult to hold an youth member in Nampula.
electoral census as well. Thus, there must
be a change in the law, which will need to The march was not covered by the police,
be agreed this month. even after the youth of the Renamo Party
submitted a request asking for police
When could the voter registration be held? presence during the event.
The National Elections Commission must
set the number of local assembly Source: O País
members six months before the election,
and that is based on the number of President Nyusi criticises negligence
registered voters. Processing and at Youth and Sports Ministry
checking the electoral role takes about
On Thursday 2 March, President Filipe
two months.
Nyusi accused senior staff of the Ministry
That means the registration must end by of Youth and Sport of being asleep on the
the end of January 2018, which suggests job.
electoral registration in the municipalities
He was speaking at an extraordinary
in November and December 2017 and in
meeting of the Ministry’s Consultative
the rest of the country in April-September
Council, after making visits to the Olympic
2018 for national elections the following
swimming pool and sports complex in the
year. Taken together, this month (March)
outlying Maputo neighbourhood of
the Council of Ministers will need to set
Zimpeto. Although this complex was built
the municipal election date and parliament
fairly recently, for the 2011 All Africa
will need to amend the registration law.
Games in Maputo, it is showing alarming
Source: Mozambique News Reports & deterioration.
Clippings
President Nyusi found that the pool water
Renamo youth march marks opening was dirty, and certainly not fit to swim in.
of political year The bathrooms were closed, the toilets
clogged, and without water. There were
On Saturday 25 February, members of the cracks in the wall, and an outer wall,
Renamo youth in Nampula Province which collapsed in February 2016, killing
marched through the streets of the city to the national swimming coach, Frederico
mark the opening of the political year. dos Santos, has not yet been rebuilt. The
man who had the contract to run the
Hundreds of supporters joined the leisure space beside the pool had
peaceful demonstration wearing Renamo disappeared, making off with the keys.
paraphernalia, welcoming the current
period of peace and, in particular, the “You ruined my day when you brought
truce. me to see the stadium and the Olympic
swimming pool”, President Nyusi told the
“We are here to show that we are glad Ministry officials. “We are influenced by
that there is a declared truce. Because of what you do, and that is negative”.
this truce, we have opened a space for
the demonstration of our political Managers of the Zimpeto complex justified
the problems on the grounds that the
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buildings were designed and built at the Domestic violence high on the agenda
same time, such was the haste to
complete them. But President Nyusi was New legislation is needed on domestic
not convinced by attempts to shift the violence, Speaker of House, Verónica
blame on to things which had happened Macamo, said in her opening statement
six years ago. There was, for instance, no Monday 27 February. “Violent crime is
excuse for the shortage of water since the increasing and we are preoccupied with
borehole used is owned by the intra-family violence”, said President Filipe
government’s own Sports Development Nyusi on 24 February, adding that “recent
Fund. events of this nature oblige us to rethink
our values and the basis of society”.
“I was very disappointed”, said the Attorney-General Beatriz Buchili raised
President. “I don’t know whether this gives the topic of domestic violence at the
the Minister of Youth and Sports opening of the judicial year on 1 March.
headaches. All the bathrooms are clogged
up. They say they weren’t in the original Speaking on Saturday, Inhambane
programme, but now we have to see what Governor Daniel Chapo said that the
to do with that monster”. He feared that, province now had four centres for victims
under current conditions, other parts of of gender-based domestic violence. He
the complex might collapse. “You’ve fallen said in that province alone, 2,000 cases of
asleep”, President Nyusi accused. “Do domestic violence were reported in 2016,
your jobs! I can’t come and replace you in double the level of 2015.
your work. You are becoming directors of
things that are broken”. The Human Rights Commission issued a
statement on 22 February “vehemently
President Nyusi told the country’s sports condemning the macabre acts of domestic
leaders to tackle the problems of violence that have been verified in our
managing and maintaining the sports country at an alarming level”. The lawyers
infrastructures, and ensuring that they argue that the present penalties are two
become profitable.He noted that the weak; the penalty for most domestic
Ministry was concentrating almost violence is under two years in prison,
exclusively on sport, to the detriment of which can be converted into a fine,
the other area for which it is responsible, whereas penalties from crimes against
policies for young people. “I did not notice property can be more than 12 years in
in the Ministry that there is any prison.
programme with an impact on youth”, he
said. Source: Mozambique News Reports &
Clippings
President Nyusi stressed that it is the duty
of this Ministry to take an interest in jobs Vitória Diogo joins AfDB panel on
youth employment
and housing for young Mozambicans, and
hence to coordinate with other ministries, The Minister of Labour, Employment and
such as the Ministries of Labour and of Social Security, Vitória Diogo, travelled to
Public Works and Housing. Pretoria (South Africa) in order to join the
Source: Agencia de Informacao de panel at the ministerial conference for the
Moçambique countries of Southern Africa, organised by

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the African Development Bank (AfDB). Academics, economists, trade unionists,


The one-day event brought together employers, socio-economic and labour
ministers from the southern region specialists, as well as organisations active
responsible for economic, financial, in the market were also present at the
labour, social and youth issues, with the event. The conference was held under the
aim of reflecting together and finding motto: ‘Employment Strategy for Young
solutions to the employment demand in People in Africa’.
southern Africa.
Source: Folha de Maputo

SECURITY

Renamo promises its armed wing will authorities apprehensive, although


maintain truce with Mozambican Renamo forces are promising that the
Armed Forces truce will continue”.

On Wednesday 1 March, Renamo The country’s main opposition party


announced that its armed wing promised maintains that last week, army officials put
to maintain its truce with the Mozambican commanders in various positions in
Defence and Security Forces (FDS), while Gorongosa district on high alert, claiming
accusing them nevertheless of that the truce would end and military
intimidation. clashes restart. “These provocations
create panic in the population and call into
In a statement sent to Lusa by its question the efforts that the two
spokesperson, António Muchanga, leaderships [the President and the
Renamo reports that the members of its Renamo leader] are making to consolidate
armed wing have urged the population not peace in the country”, the statement says.
to flee their homes, saying that the truce
struck with the government at the end of Source: Lusa
December would continue beyond 4
March. ‘Secretário de círculo’ and wife of
Funhalouro community leader
The statement, however, accuses the murdered
FDS of spreading the rumour in the centre
of the country that the two parties would On Sunday 26 February, local community
resume confrontations after 4 March, leader Azarias Massingue and his wife
provoking agitation in the community. (identified as Fatima Muetui) were
attacked in their home, located in district
According to Muchanga, in the 25 de Junho, Funhalouro (Inhambane
administrative post of Machipanda, Province). Muetui was killed in the attack,
Manica district (Manica Province), “military while 66-year-old Massingue was
reinforcements arrived from Chimoio by seriously injured. The same group of
road and spread rumours that attackers subsequently travelled to the
confrontations would restart at the end of nearby home of Frelimo secretary Ernesto
the truce, making the population and local Govene, where they fatally shot him.

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Police spokesperson Juma Aly Dauto told passing vehicles. On the outskirts of the
a news conference that the perpetrators of village, where a government delegation
the killings could possibly be members of was attacked and villagers forced to flee,
Renamo. According to Dauto, 10 armed traditional honey and charcoal stalls have
men (some of whom were dressed in also begun to reopen.
uniforms typically worn by the Renamo
militia) were involved in both attacks. This Several villages, especially in Mossurize
led the authorities to conclude that the in the south and Báruè in the north of
attackers might be Renamo members, Manica, were completely abandoned due
“who in the recent past have been leading to clashes between government forces
attacks on the populations in the area...” and the Renamo militia. However, since
the initial announcement of a 60-day truce
“We are worried, we are currently by the Renamo leader in January, the
experiencing a truce, but Renamo still population has been contemplating
continues with the attacks on the people returning home, and others have already
in this area. It is a huge concern for the begun cleaning up houses damaged by
Defence and Security Forces, but we are fire.
doing the work to neutralise these
individuals still on the mountain”. “We fled to Catandica, to a family
member’s house, but we were only
Contacted by Deutsche Welle Africa, the waiting for everything to end, and many
Renamo spokesperson, António people will continue to return now that
Muchanga, declined to comment. But in a there is no longer any fighting”, Ndeinda
written message, he said that the killings said. Ndinda remembered how she fled
were not politically motivated, and that from her house at dawn last winter without
they may have been related to personal even clothes on her body. In Chiuala, the
matters. The police have already centre of the attacks attributed by the
dismissed the hypothesis of crime of police to Renamo on the EN7 between
passion. Manica and Tete and on to the African
interior, a village once occupied by
Source: Rádio Moçambique/Deutsche Welle government forces quartered there once
again has residents plying their trades.
Thousands returning home confident
of end to conflict “First we started selling mangoes, even
with the military escorts, but now the
In a sign of confidence in the current situation has improved and many are
cessation of hostilities, thousands of already returning home because there is
villagers have begun to return to central no fighting anymore”, a local merchant
Manica, to the homes they deserted as a said, explaining that the military that had
result of the recent politico-military conflict occupied the village had now withdrawn
between Renamo and the government. leaving only a token force. The military still
“There is no longer any war, so I have patrol the village, which saw a great
returned with my family, here where I can number of attacks on the EN7, but
make a living selling food to travellers”, casually dressed and unarmed.
says Elisa Roque, a resident of
Nhamatema in Báruè district, waving a Source: Lusa
bowlful of boiled and roasted corncob to

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Zimbabwe safe from Renamo – Army between the government and rebels and
we are closely monitoring the situation,
Zimbabwe is safe from incursions by but we have not had a situation where
Renamo bandits from Mozambique Mozambican rebels have made incursions
despite sporadic attacks between that into our country”, he said.
country’s government forces and the
rebels, the Zimbabwe National Army has “The only Mozambicans that we have in
said. There were fears that rebel Renamo our country at the moment are refugees
bandits, under the leadership of Afonso numbering about 860 who fled conflict in
Dhlakama, would pose a security threat in their country and are housed at
communities in Manicaland that border Tongogara Refugee Camp”, he added.
with Mozambique.
Maj-Gen Mugoba said there were
However, ZNA Chief of Staff responsible increasing cases of smuggling through an
for Operations and Training, Major area about 10 kilometres north of Sango
General Trust Mugoba, said over the Border Post and the Corner Store area
weekend that Zimbabwe was safe from along the border.
the Renamo threat.
Smugglers were also using the recently
Maj-Gen Mugoba said the country’s de-mined area near Crooks Corner in
security forces were closely monitoring southern Chikombedzi to illegally bring
the situation in Mozambique where various items into the country. Maj-Gen
feuding parties signed a ceasefire. He Mugoba said there was also an urgent
said ZNA was going to beef up personnel need for the Surveyor-General’s Office to
on the country’s border with Mozambique restore border markings that clearly
to curb cross border crime. demarcated the official border between
Zimbabwe and its eastern neighbour.
“We are beefing up our forces to increase
border patrols that we carry together with “There are no longer any visible pegs that
members of the ZRP so that we stop demarcate the border between us and
cross-border smuggling that is rampant Mozambique and this has been creating
along our border with Mozambique”, he some problems because the border
said. between our two countries is not clear in
some areas and the local office of the
“We observed that there is rampant Surveyor-General should work on that
smuggling of illicit drinks that are used to together with their counterparts from
make liquor together with second hand Mozambique to solve this problem”, said
clothing”, he said. Maj- Gen Mugoba.

Maj-Gen Mugoba said they also wanted to Cross-border smuggling is rampant along
reduce cross-border cattle rustling either Zimbabwe’s porous border with
by criminal gangs from Mozambique or Mozambique with smugglers bringing into
gangs from that country working in the country cheap second hand clothing
conjunction with their local counterparts. and illicit drinks such as brochili.

“There is a ceasefire that is being Source: The Herald


observed in Mozambique at the moment

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CRIME

The following graphs and map relate to the political and security incidents in Mozambique
from 01/01/2016 to 31/12/2016.

GRAPH 2: Province by Month

GRAPH 3: Injuries/Fatalities by Month

Should you wish to view the full report and additional statistics on
Mozambique incidents please email alerts@rhula.net

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Missing Portuguese businessman Police should reflect on how to prevent


kidnapped in Mozambique: Interior violent crime – President Nyusi
Minister goes to Lisbon
On Friday 24 February, President Filipe
Interior Minister Jaime Monteiro Nyusi urged the Academy of Police
commenced a working visit to Lisbon this Sciences (ACIPOL) and the police force
week to discuss the case of the itself to reflect about the best way of
Portuguese businessman kidnapped in combating violent crime and domestic
Beira (Sofala Province) last July and violence.
missing since.
“It’s time for us to try and seek the
According to the journal Público, after reasons behind such attitudes and work to
seven months of silence and three weeks avoid their repetition”, declared President
without responding to a letter from Nyusi during a ceremony at which 231
President Marcelo Rebelo de Sousa on police officers graduated at the ACIPOL
the missing businessman, Mozambican headquarters, in Marracuene district
head of state Filipe Nyusi has finally sent (Maputo Province).
a Minister to Lisbon.
He stressed that modern societies are
According to Público, Maputo’s unusual characterised by constant improvements
silence has generated deep unease in the in their police forces so that they can rise
Portuguese state. to present and future challenges,
anticipating events through prevention.
Minister Monteiro arrive in Lisbon on
Wednesday 1 March and met with He urged the graduates “to commit
President Marcelo Rebelo de Sousa and yourselves to the people and use the
Prime Minister António Costa in separate scientific knowledge acquired during your
meetings. training to improve the security of
Mozambicans and of all those who, for
During the two meetings, the Mozambican various reasons, are in the country”.
Minister revealed that “investigations by
the Mozambican authorities are He noted that the latest cases reported
continuing” in order to establish the facts should lead citizens to rethink social
behind the disappearance of a values, as well as the role of the state in
Portuguese citizen. building a healthy and harmonious
society.
There are dozens of theories circulating in
both Mozambique and Portugal about the President Nyusi said that violence is
circumstances and possible motivations of sheathed with the false perception that
the kidnappers, some of them seeing the there is something natural about
abduction in a political setting, others in aggressive acts. “This happens, for
an economic. example, when we believe that physical
and verbal aggression is equitable
Source: Folha de Maputo/Lusa punishment, and promotes the character
and personality of a particular member of
the family”, the President added.

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President Nyusi stressed the role of the told the BBC that the allegations are
family, the churches and the community in “unfounded”.
general in the all-round training of citizens,
and of the state itself, which contributes However, he said that Tanzanians and
with educational institutions, such as people of other nationalities, including
ACIPOL. Mozambicans, were being forced to
abandon the illegal mining of rubies in the
“It is also up to the state to act so as to Montepuez district.
correct deviant or criminal behaviour
through the police, on the one hand, and He said the only goods seized from
through the courts on the other”, he Tanzanians during the operation were 22
continued. “Institutions such as ACIPOL vehicles, which had forged documents,
should ponder, through studies and including number plates and vehicle
research, on how to correct these types of registration books.
criminal phenomena”.
He also said the allegation that a woman
President Nyusi said that it is the duty of had been raped by two policemen was
the police to restore order by preventing found to be untrue by health authorities
and repressing crime, in the framework of who had examined the alleged victim.
the law and of respect for the fundamental
rights of citizens, such as the right to life Chuguro said most of Tanzanians relied
and to physical integrity”. on illegal mining and did not have
resources for survival or to pay
Police training, he added, is only transportation to return home. He said
meaningful if, on the various fronts of most of the of them were put on buses to
preventing and fighting crime, it makes a the border.
positive difference, and if this difference is
reflected in public tranquillity and security. Source: BBC

President Nyusi urged the graduates “to Five policemen accused of


be reference points in professional ethics, involvement in fuel theft
so that you can induce transformations
Five Mozambican policemen were
which we hope will be permanent”.
detained on the morning of Monday 27
Source: Agencia de Informacao de February, accused of facilitating a criminal
Moçambique scheme to steal 10,000 litres of diesel at
the Lingamo fuel terminal in the southern
Mozambique denies police abuse in city of Matola, according to a report in
ruby deportations Thursday’s issue of the O País

A Mozambican government official has Ironically, these policemen had been sent
dismissed allegations by Tanzanian to protect the terminal precisely because
citizens that they had been assaulted by of repeated thefts of fuel.
security forces as they left the country
amid a crackdown on illegal immigrants. The criminals drove vehicles into the
Matola Port area, broke into pipelines
Abdul Chuguro, who heads the forestry carrying the diesel, and siphoned it into
department in Cabo Delgado Province, containers.

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The detained policemen claimed they “In the police force, we don’t want people
knew nothing about the theft, and did not who are pretending to be police”, said
even see the cars moving around the Martins. “We want policemen who are
terminal. “I know nothing about the theft”, committed to guaranteeing public order
one of them said. “I don’t know what time and to fighting crime”.
the cars came in. None of the team saw
any movement”. Stealing fuel can be a hazardous
business. On 13 December 2015, there
A second police agent said she had fallen was a raid on the fuel terminal by thieves
asleep at her post. “When they woke me using fishing boats. The theft went badly
up, they told me I had to get into the car, wrong when the fuel caught fire, killing at
and I thought I was being taken to the least 17 of the thieves, destroying seven
chief because I was sleeping on duty. I of their boats, and causing extensive
had no idea what had happened. It was damage to the port.
cold that night. I didn’t resist and I fell
asleep. I didn’t take part in this crime, and Policemen supposedly guarding the port
I don’t know what happened”. were also complicit in this theft.

But the Maputo provincial police Source: Agencia de Informacao de


command has no doubt that the five Moçambique
policemen were involved in facilitating the
theft. PRM recovers 20 tons of stolen wheat
on a train in Manica
“We found the vehicles inside the
terminal, carrying 9,770 litres of diesel”, The Mozambican police recently
said police spokesperson Emidio recovered 20 tons of wheat stolen from a
Mabunda. “These police agents were goods train in the area of Messica
there to protect the area, but instead of (Manica Province).
doing their duty, they took part in the theft.
Speaking to reporters in Manica town on
Right now we are working to identify the
Monday 27 February, the spokesperson
owners of the vehicles”.
for the provincial police command, Elcídia
During the police operation, the owners of Filipe, said the train had been carrying a
the vehicles abandoned them and fled. cargo of wheat from the port of Beira
But they left behind documents and (Sofala Province) to Zimbabwe. When the
mobile phones, through which the police train stopped in Messica, a gang of
may be able to identify them. thieves started looting the wagons. Filipe
said their intention was to sell the wheat
A second police spokesperson, Juarce on the informal market.
Martins, said “It isn’t possible for unknown
persons to enter the port premises and Five members of the gang were caught
steal so much fuel without the connivance red-handed as they moved the sacks of
wheat from the wagons to waiting cars.
and facilitation of the police agents.
The police seized four of these vehicles.
Certainly someone opened the gates for
them”. Filipe said it was thanks to a tip-off from
the local population that the theft was
interrupted and the criminals arrested.

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This was by no means the first such theft: fuel robbery situation. We can say that
Filipe said local people had seen trains there has been a significant reduction in
stopping in the Messica area, and the theft of fuel in the port since the last
unloading goods several times, both in quarter of 2016”, Sofala police command
broad daylight and at night. spokesperson, Sididi Paulo, said.

“We were informed of the theft and so we With this squadron and the reinforcement
went there”, said Filipe. “When we arrived, of existing means, “the police have
we found them loading the product onto responded quickly in containing the foci of
the vehicles”. fuel theft, ensuring that no case has been
recorded since September 2016”, Paulo
“It’s not the first time”, she added. “They said.
change zone and they steal various goods
carried by the trains going from Beira to However, assaults on freight leaving the
Zimbabwe. This is a criminal network that port of Beira in the Munhava area,
operates throughout the Beira Corridor”. particularly trucks loaded with grain for
neighbouring countries, still occur.
The five thieves attempted to bribe the
commmander of the Messica police post, “We met with the local community and
offering him MT60,000 (about US$875, at launched several appeals, and, with the
current exchange rates) in exchange for management of the port, consensus was
their freedom. He rejected the bribe, but reached that no one was going to move
seized the money as evidence. The five goods without having the police force
men will thus face changes of theft and of there, and that when they contract
attempted bribery. services to private forces, those too would
send information to the police or port
Although not mentioned by Filipe, it police station”, Paulo explained, adding
seems clear that regular looting of that night-time unloading had been
Zimbabwe bound trains is only possible abandoned.
with the connivance of railway staff.
Fuel theft and assaults on freight lorries
Source: Agencia de Informacao de are usually carried out by groups of young
Moçambique people just outside the port of Beira. The
thieves live near the port and the scheme
Police neutralise fuel theft gang in is organised with informal fuel dumps at
Beira Port their residences.
Police in Sofala Province have put a stop The merchandise is marketed in parts of
to the theft of fuel from the port of Beira Beira city and in other areas of the
orchestrated by a sophisticated network country.
with unlicensed tanks and sales stations
in residential backyards which has cost Since the end of 2016, the police have
business owners and the state dearly for been co-ordinating actions with the Beira
several years. port operators, carriers and the Portos e
Caminhos de Ferro de Moçambique
“The police have set up a police station (CFM) to contain the theft of fuels and
right in the harbour zone and have been other goods
patrolling the corridor where there was a

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Speaking off the record to VOA, one Beira in the subsequent phases, but there is
businessperson said that the police would reluctance and hesitation about setting
still have a difficult job cracking down them free, even when there is no reason
completely on the theft of fuel and other to believe that they pose a flight risk, or
goods because the thieves constantly will disturb the investigations”, he added.
changed strategies.
This reluctance persisted, Muchanga said,
“It’s no longer stolen the old-fashioned even in cases where the legal time limits
way. There are new, more sophisticated on preventive detention had been grossly
methods”, the source claimed. exceeded. As a result, there has been a
substantial increase in the number of
Source: VOA Português habeas corpus requests reaching the
Supreme Court.
Top law officials denounce prison
overcrowding “We receive 15 habeas corpus requests in
2015, and the number rose to 61 in 2016,
Serious overcrowding in Mozambican almost all of them based on the fact that
prisons hinders the rehabilitation of the limits on preventive detention had
prisoners, damages their dignity, and been exceeded”, he continued.
imposes extra costs on the state,
denounced the President of the Supreme But most detainees cannot afford a
Court, Adelino Muchanga, on Wednesday lawyer, and know nothing about the
1 March. habeas corpus rules: if they did, the
number of requests would certainly be
Speaking at the ceremony opening the much larger.
2017 judicial year, Muchanga pointed out
that total capacity in Mozambican jails Attorney-General Beatriz Buchili also
was for 8,188 prisoners, but they are now denounced prison conditions, noting that
holding over 18,000 people – more than the number of people now incarcerated
twice the installed capacity. was higher than it had been for the last
three years.
He blamed the overcrowding on excessive
use of preventive detention, the slowness She agreed with Muchanga that the
in bringing prisoners to trial, and the use situation could be minimised by reducing
of imprisonment, rather than alternative the number of illegal detentions, speeding
forms of punishment, for petty offences. up judicial procedures, and using
alternative punishments (such as
In 2016, Muchanga said, 35% of those in community service) instead of
the country’s jails had not been tried, but imprisonment.
were in preventive detention. Many of
them had not even been charged, and of Buchili hoped that a new Penal
those facing charges many could be Procedural Code and a Code on
released on bail, and told to await their Alternatives to Prison, now under
trials at home. consideration by the National Assembly,
will significantly improve prison conditions.
Suspects “persistently requested
provisional release during the preliminary
investigation of their supposed crimes, or

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She also denounced the “countless whoever has money can violate because
reports” of inhuman treatment of they can afford it. Then, we are not
detainees in prisons and police cells. A actually going to achieve our goals”. Vera
major challenge for the bodies of the Cruz believes that the high amount of the
administration of justice, she said, was to compensation will usher in other
eliminate these situations, since “people problems.
who are incarcerated, although they have
committed offences, are still human “[The money] will distract us, it will put
beings and deserve full respect and things out of focus. I think that money
dignity”. causes us all to think about the sentence,
the law and the whole process
Source: Agencia de Informacao de surrounding the case”.
Moçambique
But the head of the women’s NGO says
Josina Machel case raises question that the case raises questions such as the
over compensation need to take ownership of the law and its
critical analysis, as well as its results. But
In Mozambique, the speed of the process the lack of knowledge of the laws is
and high value of damages decided in the widespread in the country.
case of Josina Machel are raising
eyebrows. Fávio Menete Bastonário of the Compensations: Civil Code establishes
OAM explains that compensation is what amount should be set by the court.
determined by the court based on the Civil That is why Deutsche Welle Africa sought
Code. a lawyer to clarify the laws and criteria
which determine the amount of damages
Rufino Licuco was convicted and ordered awarded.
to pay Josina Machel MT200-million in
compensation, but many compare the Flávio Menete is the chairman of the OAM
Machel case with thousands of others and explains that “with regard to non-
where courts have stipulated amounts property damage, and it is on these
considered ridiculously low, even in cases damages that the controversial matter is
of death. No-one remembers addressed, the law, which is the Civil
compensation as high as this in a similar Code, is to be served as to their gravity”.
case.
“Of course, we are not discussing whether
Who has money can violate? or not there is seriousness insofar as the
person is left without an eye”, he points
Maria Paula is the president of Fórum out. “Now, as regards the amount of
Mulher and says that she understands compensation, the Civil Code establishes
people’s disgust, and raises other that the amount should be fixed equitably
questions regarding big compensation by taking into account the degree of
sums. culpability of the offender, his economic
situation and the economic situation of the
“I think the issue is fair. I would even injured party and also the circumstances”.
prefer the family not to receive this
amount because we have to demonstrate Another aspect of the case that also
firmness as to what we want, and that is causes unease is the speed with which
justice. Otherwise we are saying that

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the lawsuit was conducted. There are ZAR8-million gold bar bust at OR
many who can think of thousands of Tambo: “Passenger in transit from
criminal cases of even greater gravity Maputo to Dubai”
hanging in limbo or even completely
forgotten. Not so with elite figures such as Customs officials in South Africa arrested
Josina Machel, daughter of the first a man with 16 kilograms of gold bars
president of independent Mozambique. worth ZAR8-million in his suitcase at OR
Tambo International Airport‚ the SA
Speed for the few? Revenue Service (SARS) said on
Thursday 2 March.
But Vera Cruz disregards this almost
universal opinion, saying, “I believe that “The passenger was in transit from
possibly the efforts made by the victim Maputo‚ Mozambique to Dubai”, SARS
herself helped in some way to speed up said in a statement.
the matter. I do not think it was on the side
of the family; maybe it was the sensitivity “Upon inspection of the passenger’s travel
of jurists wanting to make this case a documents‚ customs officials noted
publicly instructive case that would prompt possible irregularities. An inspection of the
reflection. But I personally do not think passenger’s hand luggage led to the
that’s the reason”. discovery of five gold bars”, The
documentation and gold bars were
The chairman of the Bar Association, on handed over to the Hawks precious metal
the other hand, makes this point about the unit. The man faces prosecution under
speed at which the case was dealt with. “I Section 37 of the Precious Metals Act of
should like to express my pleasure at the 2005.
fact that the case was dealt with swiftly. Of
course, I would not say the same for those Source: TMG Digital
who are not treated with the same speed.
We need to give some importance to Man arrested in Marracuene for
these issues related to domestic violence, possession of an illegal weapon
because they must be dealt with quickly.
A young man was recently arrested in
When we talk about domestic violence we
Marracuene (Maputo Province) on
are dealing with issues that affect the
charges of carrying an illegal weapon.
stability of a home”.
According to the detainee, who assumed
The trial has triggered a debate on law
ownership of the weapon, someone in his
enforcement, and Menete acknowledges
family is “using witchcraft to lure him into
that such a high-impact case is an
the world of crime”. “When I am
opportunity to bring about change. “I think
disgraced, someone wins”, he said.
it’s something that needs to be
considered. So we have to use this The detainee was arrested following a tip-
opportunity to discuss the subject with a off from his older brother who found the
clear head and see how we’re going to gun in his house and immediately
have to deal with these kinds of issues informed the police.
from now on”.
Source: Moçambique Media Online
Source: Deutsche Welle

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Thirty-six illegal Ethiopian immigrants woman struck her husband on the head
arrested in Meconta thanks to tip-off with a stick, resulting in his death.

The PRM have arrested 36 illegal A few days later the couple’s children
Ethiopian immigrants, found in a house in discovered that their father had been
Meconta district (Nampula Province). murdered and buried by their mother.

The spokesperson for the Nampula They interrogated their mother, who
provincial police command, Zacarias admitted to the murder.
Nacute, announced the arrests at a press
conference in Nampula city on Monday 27 Later that same day the woman hung
February. herself, allegedly in an attempt to avoid
accountability for her actions.
He said the house where the Ethiopians
were living had been discovered thanks to The woman’s father has not yet been
a tip-off. The house was raided in a joint arrested as the police are still collecting
operation by the police and the Provincial evidence.
Immigration Services.
Source: @Verdade
“We haven’t ascertained whether they
were all living in the same house”, said Government officials arrested for
Nacute. falsifying documents in Zambézia

“But the fact is that we found them all in Two state officials were recently arrested
the same residence. The procedure to in Zambézia Province on charges of
repatriate them to their country of origin is falsifying and selling military declarations.
under way. It was proven that they were
One of the detainees was assigned to the
living in the province without any legal
Zambézia Military Recruitment Centre in
authorisation”.
Quelimane.
Source: Agencia de Informacao de
Moçambique He used his position to obtain incomplete
military declarations, which had been
Murder-suicide in Tete Province signed and stamped but not filled out.

An unnamed woman murdered her Once in possession of such documents,


husband, buried his corpse on her family the man sold them to several unknown
farm (allegedly with the help of her elderly people.
father), and then hanged herself a few
days later. At least 200 military declarations are
believed to have been sold by the
The incident occurred in the district of detainee for between MT200 and MT500
Changara (Tete Province). each.

Preliminary examinations suggest that, Source: @Verdade


following a fight between the couple, the

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HUMAN RIGHTS, SOCIAL DEVELOPMENT AND NGO’S


Pequenos Libombos: authorities Agostinho do Rosário, Minister Martinho
investigate fire at Maputo water supply said this was a water saving measure, as
dam the government attempts to increase the
amount of water stored in the reservoir.
On the night of Thursday 23 February, a
fire broke out at the dam that supplies The pumping and treatment station on the
water to Mozambique’s Greater Maputo Umbelúzi is the main source of drinking
region. While the flames were water for the Greater Maputo Metropolitan
extinguished two hours later, the damage Area, and it depends on the regular flow
was yet to be assessed as of Monday 27 of water out of the Pequenos Libombo
February. Dam.

Delario Sengo, head of the Technical But the level of the reservoir had fallen so
Department of Águas do Sul Regional low that, as from 10 January, the Maputo
Administration (Ara-Sul), said a short Regional Water Company (Águas da
circuit was suspected. Região de Maputo, AdeM) began
rationing the water supply to Maputo and
Situated about 40 kilometres from Matola cities and Boane district. Each
Maputo, the Pequenos Libombos Dam’s neighbourhood only receives water on
main function is to supply water to the alternate days.
Greater Maputo region, including the of
Boane and Matola municipalities. The level of the reservoir fell at one point
to around 13%. Minister Martinho said the
The dam has storage capacity of 400- recent rains have allowed it to recover to
million cubic meters, but because of the around 20%, although the government
prolonged drought in the region, the dam was still hoping for it to reach over 50%.
currently only holds about 70-million cubic
meters of water, or approximately 18% of Up until Tuesday, the reservoir was
its capacity. releasing 1.5 cubic metres of water a
second into the Umbelúzi. With the
Because of the lowness of reserves, the floodgates closed, nothing at all is leaving
authorities are rationing water supply in the reservoir. Minister Martinho told
the Greater Maputo region. Agencia de Informacao de Moçambique
that this was possible because there is
Source: VOA Português still water further downstream at Movene,
which is supplying the treatment station.
Pequenos Libombos floodgates close
When there is no longer any water at
On Tuesday 28 February, Mozambican
Movene, the Pequenos Libombos
authorities closed the floodgates at the
floodgates must re-open. This required
Pequenos Libombos reservoir on the
careful co-ordination on the part of the
Umbelúzi River, the Minister of Public
water resource managers.
Works, Carlos Martinho, told reporters.
Minister Martinho put the greater Maputo
Speaking at a Wednesday press briefing
water deficit at 120,000 cubic metres a
alongside Prime Minister Carlos

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day. Some of this deficit could be met the city neighbourhoods witnessed the
from ground water. There is potential to sad scenario.
exploit ground water in Marracuene and
Manhica districts, north of the capital, he Several interviewees reported that their
said (but new water mains would be homes were flooded by the rains, and
needed to carry this water to Maputo). some were even left without a roof over
their heads. Alves César Mussa said that
Another possibility would be to use water he and his family had temporarily
stored behind the Corumana Dam on the abandoned their house because it was
Sabie River, in Moamba district. That flooded, while Elisa João Bosco said that
would require construction of 100- she had only just escaped with her
kilometre-long pipeline to carry the water belongings.
to the Machava distribution centre in
Matola. “I’m on the street because my house was
flooded, so I’m taking my possessions to
Minister Martinho said he had met with his my grandmother’s house in Manga. When
Ministry’s partners on Monday, who the water goes down I’ll return to my
expressed a willingness to help overcome house”, she said.
the current water crisis. He said US$1.4-
million is needed immediately, and short- Chico António Bene, another resident,
term measures would cost a further said that when his house started to flood,
US$16-million. In the long-term, solutions he and his family moved to the freeway.
would cost over US$1-billion, including “My property has suffered, my house has
new dams, such as that planned at flooded, the water level does not allow us
Moamba Major, on the Incomáti River. to stay there. That’s why we’re out on the
road. We are waiting for it to come down
Source: Agencia de Informacao de so we can go back”, he said.
Moçambique
Berta João, a resident of the Alto da
Flooded out in Beira: a month’s rainfall Manga neighbourhood, said she lost most
in just two days of her March food shopping. “I lost a bag
of rice and 10 kilograms of flour – the
Heavy rains on the night of Sunday 26 water level did not permit me to recover
February continued to fall on Monday, anything. And since last night I have been
flooding homes and forcing families on the on the street”, she said.
outskirts of the city of Beira (Sofala
Province) out into the open. Alto de Achado Jamal, of the National Institute of
Manga, Matacuane, Macurungo, Chota, Meteorology (Instituto Naciona de
Munhava and Ndunda are worst affected, Meteorologia, INAM) in Sofala, said that
with streets totally impassable to any form 223.9 millimetres of rain fell on Sunday
of motorised transport. and Monday in the city of Beira, almost
the amount that would fall in and average
The poor state of drainage and sewage February (296.2 millimetres). Jamal
ditches in many neighbourhoods predicted the weather would improve from
aggravated the situation, resulting in the Tuesday on, though without intermittent
flooding of homes, and a Diário de showers or heavy rain.
Moçambique reporter doing the rounds of

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Jamal explained that the weather was due Homes were inundated in outlying
to atmospheric instability resulting from neighbourhoods such as Munhava,
the interaction between air masses of Macarungo, Manga, Chota, Muchatazina
different types. “INAM forecast the and Vaz. In some cases, residents were
occurrence of moderate to strong (30 to forced to abandon their homes. Some
50 millimetres of precipitation in 24 hours) Beira schools had great difficulties in
or strong rains (more than 50 millimetres operating, since the rains kept many of
in 24 hours), accompanied by severe their pupils and teachers away.
thunderstorms and winds gusting up to 60
kilometres per hour, from 25 February Speaking to reporters on Tuesday
until 28 February in the districts of morning, the mayor of Beira, Daviz
Machanga, Chibabava, Buzi, Simango, recalled that Beira is prone to
Nhamatanda, Dondo, Muanza, flooding owing to the fact that part of the
Gorongosa, Cheringoma, Marromeu and city is below sea level, and the water table
Beira”, he said. is very high.

In response to the bad weather, INAM This made it crucial to maintain the city’s
warns maritime concerns and the general drainage system, and Mayor Simango
population to take appropriate reported that the new floodgates installed
precautionary measures. at the Chiveve River, inaugurated in
January, performed well, as did the older
Source: Diário de Moçambique floodgates in the Palmeiras
neighbourhood.
Three children drown in Beira floods
Municipal staff have been checking on
Three children have drowned in floods them since Sunday night, to ensure that
caused by torrential rains in the central the storm waters are channelled towards
city of Beira (Sofala Province). the sea. An emergency floodgate was
opened on Tuesday, to strengthen the
The rain began on the night of Sunday 26 system.
February, coinciding with high tides, and
swamped many low-lying areas. One of Mayor Simango said that natural factors,
the victims was a seven-month-old baby such as the rains and the high tides,
who drowned in his sleep. combined with disorderly construction
along the drainage ditches, and the
His parents, also asleep, did not realise dumping of garbage in the ditches, had
that the flood waters had invaded their produced the current flooding.
house.
From Sunday night to 6:00hrs on
According to a report carried by the Tuesday, 223 millimetres of rain fell on
independent television station STV, a Beira – an amount that normally falls in an
four-year-old boy died while he was entire month. The forecast is that the
playing in the muddy water. He is believed weather in Beira will improve as from
to have fallen into a hole and drowned. Wednesday.
The third victim, a 12-year-old boy,
drowned in a ditch as he was trying to Source: Agencia de Informacao de
make his way to school. Moçambique

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Houses in Xai-Xai city flooded Five die as river bursts its banks

The number of homes flooded in Xai-Xai Five people died and five others are
city (Gaza Province), has risen to 226 missing, when the vehicle they were
following intermittent rains over last 10 travelling in was swept away by the
days. waters of the Mussapa River, in
Sussundenga district (Manica Province).
Xai-Xai city councillor Almeida Guilume
told Jornal Notícias that the situation A press release from the Manica
mainly affected low-lying land prone to provincial government said that the
flooding when it rains. tragedy happened on Monday 27
February “when the waters of the
Currently, at least 1,400 people are Mussapa burst their banks”.
affected and 140 kilometres of urban
roads have been damaged, with some The victims were travelling in a vehicle
sections impassable. belonging to the Chimanimani National
Reserve, which is an important
About 600 hectares of crops have also conservation area in Manica. There were
been flooded. 21 people on board, 11 of whom survived.
Five bodies were recovered and the other
If the situation prevails, Guilume says, five are still missing: they are three
temporary accommodation may be workers of the Chimanimani reserve and
needed, but so far solidarity among two members of a local community.
neighbours and family members has
successfully addressed the situation of The vehicle too has not yet been located.
those affected. Search operations are continuing, with the
participation of the local population. The
According to INAM, Xai-Xai City provincial government has sent a team
registered 93.7 millimetres of rain on from the fire brigade to assist in the
February 24 and 68 millimetres on search.
Saturday.
Source: Agencia de Informacao de
The forecast for the area is for winds with Moçambique
strong gusts and moderate to strong rains.
Warnings of possible storms in
INAM foresees moderate to strong rains Mozambique
(30 to 50 millimetres of precipitation in 24
hours) possibly rising to strong (more than INAM has warned of new weather
50 millimetres in 24 hours), accompanied phenomena that could result in floods and
by severe thunderstorms and winds with damage in the country, just days after
gusts of up to 60 kilometres per hour. southern Mozambique was hit by cyclone
Dineo, killing seven and affecting 650,000
The weather system will also affect the and causing damages estimated at about
districts of Massangena, Chicualacuala, US$16-million.
Chigubo, Mabalane, Mandlakazi, Chibuto,
Guijá and districts of Xai-Xai. Forecasters say there is no room for
complacency as the water temperature in
Source: Jornal Notícias the Mozambique Channel is very high,

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possibly presaging another tropical storm. Approximately 1,692 classrooms were


Temperatures range between 28 and 31 destroyed, and 72 health units were also
degrees and Acácio Tembe, head of affected.
forecasting at INAM, says that such
temperatures are conducive to the Deputy Minister Saíde pledged that,
occurrence of cyclones. through the country’s relief agency, the
INGC, the government “will continue to
Tembe reminded the public that the provide humanitarian assistance to the
cyclone season, which runs from January people affected and to the most
to April, is still ongoing and further vulnerable groups”.
cyclones may well occur, albeit possibly
not as devastating as the one which hit The Council of Ministers also received a
Inhambane Province on 15 February. report on the new school year, which
opened on 20 January.
Tembe urged all Mozambicans,
particularly those living near the coast and According to Deputy Minister Saíde, there
in low-lying areas near rivers, to heed are about seven-million pupils enrolled in
warnings and withdraw immediately to 12,528 primary schools, 539 secondary
safe areas when requested to do so by schools, and 181 technical and
the authorities. professional schools.

Source: VOA Português Source: Agencia de Informacao de


Moçambique
Approximately 550,000 people affected
by cyclone Dineo World Food Programme pledges to
help 50,000 victims of cyclone Dineo
The latest estimate of the damage caused
by cyclone Dineo, which struck the The United Nations World Food
southern province of Inhambane on 16 Programme (WFP) has pledged to help
February, is that over 550,000 people 50,000 people affected by cyclone Dineo
were affected, according to the for a period of three months.
government spokesperson, Deputy Health
Minister Mouzinho Saíde. Speaking to the media in Inhambane, the
Permanent Secretary of the province,
Speaking to reporters on Tuesday 28 Ricardo Nhacuongue, said that WFP will
February, after the weekly meeting of the provide food support and distribute
Council of Ministers (Cabinet), Deputy blankets and tents from March to May.
Minister Saíde said the known death toll
from the cycle still stands at seven. “We need 746 school tents and at the
moment we have only 17, we are going to
Ninety-six people were injured, 16 of them prioritise primary schools because of the
seriously. urgency with which children should return
to classes”, said Nhacuongue.
The report given to the Council of
Ministers said that Dineo destroyed Source: A Bola
33,712 houses and damaged a further
71,526.

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Tents serving as makeshift schools in of debts, the forgiveness of sins or secure


Inhambane and Gaza divine blessing.

More than 2,000 schools were destroyed “There is nothing in the bible that
in Inhambane in the wake of tropical authorises a man to use his daughter for
cyclone Dineo. The students from the the payment of services rendered by the
effected schools have been forced to pastor of the congregation that his parents
attend classes in makeshift tents. attend”, the COREM Secretary General
said.
“In Inhambane we have 2,222 schools
that were destroyed, and in Gaza we have The practice is quite common, even
44. And so far we have been able to among practitioners of traditional medicine
acquire some tents that are serving as and particularly in remote areas of the
classrooms, but we are mobilising country, due to the financial inability of
ourselves to rebuild the destroyed schools families to pay.
in order to resume classes normally”, said
Deputy Minister of Education and Human According to the 2011 Demographic
Development, Armindo Ngunga. Health Survey, one in two girls in
Mozambique gets married before the age
Source: O País of 18, 14% of these before the age of 15.
Figures from the Ministry of Education and
Mozambican religious leaders Human Development show that the
repudiate use of girls to repay debts dropout rate of girls in school increases
after 12 years of age.
Religious leaders at a national seminar on
preventing and combating premature Faced with the reality still endemic across
marriages have rejected the practices of much of the country, Mussuei said there
pastors of some religious congregations was an urgent need to intensify education
who encourage the use of virgin girls to on human rights, values that are almost
pay debts incurred by their parents. unknown in thousands of Mozambican
families.
In a debate on the theme ‘Role of the
Family and Society in General in Mussuei pointed out, for example, that at
Preventing and Combating Premature birth all children (boys and girls) have
Marriages’ held on the morning of Sunday rights that must be unconditionally
26 February, the last day of the national respected, but what happened was the
seminar taking place in Pemba (Cabo exact opposite, because families
Delgado Province), Albino Mussuei, themselves fostered some of the practices
secretary general of the Council of that undermined the children’s future.
Religions of Mozambique (COREM),
launched a strong attack on “Satanic Mussuei advocated empowerment and
agents” infiltrating the ministry of God. vocational training as measures that could
contribute to reducing the high levels of
Mussuei said there was no teaching in economic vulnerability affecting families
any of the 73 books of the Bible saying and society.
that a virgin could serve for the payment

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The speeches revealed the shocking case The embassy issued the woman and her
of a religious congregation in the central child new travel documents so that they
province of Zambézia which had to be could return to Maputo.
closed down because a large number of
young girls in a body of believers were “Of her own accord, she chose to return to
pregnant, their religious leaders being the country. Thus, we provided all
heavily involved in the abuse. necessary support and she is already in
Mozambique”, explained Ambassador
Source: Agencia de Informacao de Macaringue.
Moçambique
The ambassador indicated that he was
Thirty schools reopen in Morrumbala working to see if there were more
Mozambicans affected by the violence. To
Approximately 30 schools in Morrumbala that end, Macaringue said he was in
(Zambézia Province) that had been contact with community leaders in the
temporarily closed last year due to the desolated areas in order to identify and
politico-military conflict were recently provide all due support.
reopened in the light of the military truce.
“As you know, the zone (where the riots
According to the administrator of the have been going on) is big and we have to
district, Pedro Sapange, the classes are do some investigative work to find out
going well, although some students do not whether or not there are more
yet have books. Sapange expects the (Mozambican) victims. Fortunately, so far
books to arrive later in March or early we have no other indication of compatriots
April. affected”, explained the diplomat.
Source: O País Demonstrators accuse foreigners of being
responsible for drug trafficking and
House of Mozambican citizen burned
prostitution.
down in Pretoria in xenophobic attack
Xenophobic incidents have escalated in
The home of a Mozambican national
this country for the last two weeks, with
residing in South Africa was reduced to
reports of several deaths, looting and
ashes in a fire set by South Africans who,
burning of houses.
for several days now, have been
demonstrating against the presence of It should be noted that the two great
foreigners in their country. manifestations of xenophobia recorded so
far in South Africa had Mozambican
The Mozambican High Commissioner in
citizens as emblematic victims. In 2008,
that country, Paulino Macaringue, said
Ernesto Nhamuave was burned alive and
that the Mozambican citizen lived in
in 2015, Emmanuel Sithole was stabbed
Pretoria with a minor son, and had lost all
to death.
her assets in the fire.
Source: Jornal Notícias

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HEALTH
Maputo: cholera situation report as of 4. Matola C (10%) and Partice
23 February Lumumba (10% of confirmed
cases)
Highlights:
In Maputo City:
 A total of 388 cases and one death
(CFR 0.0%) have been reported 1. Kamovota (47%),
Epidemiological week 1 and
Epidemiological week 8. Of these, 2. Kabukukuane (42%)
239 (61.5%) are from Nampula
Province (Meconta and Monapo 3. KaLhamanculo (5%)
districts)
4. KaMaxaquene (5%) and
 Laboratory tests have confirmed
5. KaMpfumo district (1%).
the presence of Vibrio cholera O1
in 37 samples collected from In Nampula Province: Meconta district
Nampula and Maputo Province (56% of the cases at provincial level) and
Monapo-Neita (44% of the cases).
 As shown in the epi curve, there is
steady increase in number of cases It is also important to notice that diarrheal
reported in Maputo City and diseases have increased by 46% in
Nampula Province Maputo Province over the first six weeks
of the year comparing 2016 with 2017.

WASH in CTC:

The CTC within the hospital in Matola is


clean and patients suspected to have
cholera are separated from other patients
on arrival.

Medical staffs have preventive items and


measures in place:

 Foot bath with chlorine


Most affected “bairros”/districts:  Hand-washing with chlorine
In Matala district:
 Protective materials
1. Matola A (30%),
 Pulverisation on vomiting
2. Tsalala (30%),
 Swab with chlorine water
3. Malhampswene (20%)

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 Disposal of grey water from CTC At household level, 86% (13/15) of the
(even from laundry) is done in safe water stored was contaminated by E.Coli
sanitary. as 68% of people admitted that they do
not treat their drinking water (such
WASH situation in the affected “Barrios” percentage is probably even more).

Two field visits have been carried out with However, we have observed that people
Direccao de Saude de Ciudade de have good knowledge of water treatment
Maputo on 23 February and with Direccao solution (chlorine or boiling water) but
Provincial de Saude de Maputo on the 24 practice is poor due to lack of “certeza”.
February.
Tap water analysed in Matola was
Water availability: chlorinated (day one: trace of chlorine;
day two: 0.5mg/L of chlorine), however,
Water shortage is a significant issue in no analyses have been carried out in
most of the affected “barrios”. In Cabral Maputo (due to lack of water). Shortage of
Barrio, it was reported that tap water is water in the water networks have also an
available one or twice per week. Few impact of water quality and residual
houses have shallow open-well with water chlorine due to increasing sources of
table almost as the same level as ground contamination.
level resulting of poor filtration and
contamination with drainage water. Hygiene messages:

Private boreholes with (sometimes) tanks Hygiene messages during the outbreak
and submersible pumps are common as should be limited to the main three
an alternative but people have to walk messages as we have notices that
long distance and pay water (MT2 for 20 beneficiaries seem a bit confused. Main
litres) or even more if the water is brought messages should be:
to you through private water-trucking.
 Treat or boiled water
Water scary is likely to continue as the
reservoir provided water to Maputo and  Wash hands with soap at critical
surroundings is only 20% full. time

Such scary is having consequences on  Any suspected cases should go


hygiene habits (bathing, cleanness of ASAP to receive free medical care
household, handwashing) as drinking and
cooking water are high priority. Families affected by cholera and their
neighbours receive visit from medical
Water quality: staffs to receive one bottle of “certeza”,

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hygiene messages and disinfection Mozambique has 13 psychiatrists for


through pulverisation. 150,000 seeking mental health services

Sanitation: Studies in some African countries indicate


that one in six patients seeking health
The suburbs visited are built on stamp care suffers from at least one type of
with challenging sanitation conditions. mental, neurological or behavioural
Rubbish is not regularly collected, there is disorder. And in recent years, more than
no drainage. Grey water from houses are 150,000 people, representing about 6% of
going directly into the sandy and narrow the total Mozambican population, have
streets and sanitation coverage do not sought care from Mozambique’s
seem adequate (poor hygienic facilities) psychiatric and mental health services.
having latrine pits full of underground
water and sometimes overflowing. The information was released at the
Improving sanitation conditions is not International Conference on Innovative
recommended as costly and time Mental Health Research in Maputo on
consuming as an emergency response. Sunday 26 February by the Permanent
Secretary of the Ministry of Health,
Wash Recommendations: Zacarias Zindoga.

1. Increase availability of “certeza” at “Recently we have invested in training and


HH level through mass distribution increased the number of mental health
in all the houses in the most professionals such as psychiatrists,
affected barrios psychologists and psychiatry technicians.
We are also working on expanding
2. During mass distribution of certeza, psychiatry and mental health services to
provide keys messages identified all districts in the country, opening
above services for drug addicts, interventions for
the mentally ill living on the streets,
3. Use mass media to alert families psychological interventions in crisis
on cholera risks and prevention situations and calamities, and in
messages implementing the ‘Reducing the Gap’
epilepsy treatment programme”, Zindonga
4. Do shock chlorination of water
said.
tanks connected to boreholes
The head of the mental health department
5. Advocate for alternative water
of the Ministry of Health, Lídia Gouveia,
supply on short-term considering
said that diseases such as epilepsy,
scarcity.
schizophrenia, affective disorders and
6. Advocate to FIPAG to make sure of problems related to the consumption of
0.5mg/l of residual chlorine in the psychoactive substances are the most
water network and monitor through common in health units offering psychiatry
DPS through donation of “pool and mental health services. “Our actions
testers” focus on preventing these problems, so
we work on community awareness to
Source: WHO/Relief Web persuade families to take the patient to
health units for diagnosis and treatment

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as soon as they see warning signs. Speaking at the signing of the agreement
Actions are also aimed at avoiding stigma. formalising the start of construction,
Many people fail to seek treatment Arlindo Muchanga said on behalf of the
because of the way society regards Maputo City Health Department that the
people who attend psychiatric clinics”, she health centre will help meet the
said. government's goals in fighting pandemics.

Participants including researchers from The Ambassador of Japan in


countries such as the United States, Mozambique, Akira Mizutani, said the
Brazil, Portugal, Angola, Cabo Verde and project will contribute to improve the living
São Tomé discussed practical and conditions of the local population. The
effective ways of doing research in the construction works of the Women's Health
area of mental health over the next five Centre are already under way and are
years. For the president of the American expected to be completed soon.
Psychiatric Association, there is plenty of
scope for research in mental health in Source: Jornal Notícias
Mozambique, but warns that the scarcity
of resources must be taken into account. Swedish support for safe abortion and
contraception
“We cannot waste the country’s resources
on programmes that do not work. That is The Swedish government and the
why it is important to do research to international NGO Ipas, which works
confirm that the Ministry’s programmes around the globe to support the sexual
are worth it”, he said. Currently, and reproductive rights of women, are
Mozambique has 13 psychiatrists to serve now collaborating to ensure the access of
a population of approximately 26-million. Mozambican women and girls to safe
Four more are in training. abortion and contraception services.
According to a Wednesday 1 March press
Source: O País release from the Swedish Embassy, this
programme began last December (2016),
New health centre for Zimpeto and will run until December 2019. Sweden
is contributing about US$5-million to the
Approximately 90,000 women (aged programme.
between 19 and 49) will benefit from the
new Women’s Health Centre to be built in It is intended to increase the knowledge,
the Zimpeto neighbourhood (Maputo City). opportunities and capacities of women
Budgeted at about USS70,000, the new and girls to take informed and safe
centre will also have a diagnostic and decisions about abortion and
prevention unit for cervical cancer, contraception. In Mozambique Ipas works
HIV/AIDS treatment and tuberculosis. with the Ministry of Health, and is a
member of the Ministry’s Technical Group
The centre was initiated by the Health on Abortion, which is developing norms
Department of Maputo City, and and directives for the provision of
construction is being funded by the comprehensive abortion services.
Embassy of Japan and implemented by
the Community of Sant'Egidio. Abortion was decriminalised under the
new Penal Code, approved by the

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National Assembly, in 2014. The Ministry INAE closes 20 establishments, mainly


of Health estimates that about 11% of all over hygiene
maternal mortality in Mozambique is due
to unsafe, clandestine abortions. The INAE last week ordered the closure of
20 establishments across the country,
The Swedish release notes that currently mostly for lack of hygiene. Speaking at a
safe abortion services are only available Maputo press conference on Monday 27
in the urban areas of southern February, the INAE Deputy Director,
Mozambique. So the programme Acacio Foia, said the inspectors had also
supported by Sweden will focus on the fined 22 establishments a total of
northern province of Nampula, and on MT597,000 (about US$8,700, at current
Zambézia in the centre of the county, exchange rates).
where there is little or no abortion
services. Over the week, INAE inspected a total of
622 establishments, mostly bakeries and
Between them, these two provinces restaurants. The inspectors seized and
account for about 40% of the Mozambican ordered the destruction of deteriorated
population. But they have some of the foodstuffs valued at MT600,000. In
worst sexual and reproductive health Maputo City and province alone, INAE
indicators in the country. closed 10 bakeries. “In one of the
bakeries, the police had to intervene”, said
Comprehensive abortion services, the Foia, “because the staff, acting on orders
release says, include not only safe of the owner, refused to allow us to enter,
abortion itself, but also the treatment of although we are accredited”.
any resulting complications, pain relief
and post-abortion contraception. “We were obliged to contact the nearest
police station”, he said. “Then we invaded
It adds that abortion and contraception the place and discovered that it was
services “are necessary because they filthy”. During the visits to bakeries, the
allow women and girls to decide on INAE inspectors not only check for
reproductive matters, which is a hygiene and cleanliness, but they also
necessary precursor for their ability to weigh the loaves to see whether the
participate fully in society, including clients are being cheated. Out of a sample
attending school, obtaining decent jobs, of 15 bakeries, the inspectors found that
and participating actively in politics”. nine were selling underweight loaves. In
one case, a loaf which ought to have
Sexual and reproductive rights “are weighed 200 grams only weighed 147
fundamental human rights for attaining grams.
gender equality, poverty reduction and
sustainable development”, declared On Friday alone, according to a report in
Swedish Ambassador Irina Schoulgin Monday’s issue of Mediafax, INAE
Nyoni. “This support is a fundamental part ordered the closure of three bakeries in
of Sweden’s feminist foreign policy”. the city of Matola, confiscated 900 loaves
and ordered the destruction of dozens of
Source: Agencia de Informacao de others.
Moçambique

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The INAE General Inspector, Maria some of the walls. Cats were also present
Freitas, told the paper that all three in the restaurant – apparently brought in
bakeries had serious problems of hygiene to hunt rats. The brigade found that none
and cleanliness, including dirty toilets and of the restaurant workers possessed the
wash basins, the presence of rats and obligatory health card.
cockroaches, and workers who were
unshaved and had long fingernails. The toilets for the clients were clean, and
so was the seating area. But the same
The “Deju” bakery did not even have its could not be said for the workers’ toilets,
own source of piped water, and had which were in a deplorable condition, with
neither bathrooms nor dressing rooms for the sanitary ware completely decrepit.
the workers. None of the workers had the
obligatory health card, and it could not The INAE General Inspector, Maria
weight the bread it produced, since it had Freitas, who headed the brigade, told
no scales. reporters that the seriousness of the
problems found left her with no option but
Mediafax adds that the owners of some of to close the restaurant and its adjacent
the businesses inspected have been pastry shop.
making angry phone calls to INAE and to
the Ministry of Industry and Trade She stressed that it is completely
demanding a change in INAE’s decisions. unacceptable to have pet cats in
The owners of these closed bakeries restaurant kitchens, because of the risk
called themselves “comrades” of the ruling that the food served to clients could be
Frelimo Party. So far INAE has not yielded contaminated by cat hairs and even cat
to this sort of political pressure. urine. The Cristal is now closed to the
public, and it is up to its owner to correct
Source: Agencia de Informacao de all the problems detected, and then apply
Moçambique/Mediafax to INAE for authorisation to reopen.
Inspectors close well known Maputo “We didn’t give them any deadline to
restaurant after finding ‘a range of correct the anomalies”, said Freitas.
threats to public health’ “What we did was forbid the restaurant
from operating without observing basic
On Tuesday 28 February, the INAE hygiene conditions”. The Cristal will be
ordered the closure of the well-known fined, and the size of the fine in such
Cristal restaurant, in central Maputo. cases depends on the number and
seriousness of the problems.
An inspection brigade that visited the
Cristal found a range of threats to public INAE is on an offensive across the
health, including septic tanks that were country to impose cleanliness and
clogged up, dirty conditions in the kitchens hygiene on establishments such as
and staff toilets, pools of foul smelling restaurants and bakeries. Last week INAE
water, and the corridor leading to the inspected 622 establishments and closed
kitchen full of garbage. down 20 of them.
The cupboards were also dirty, the Source: Agencia de Informacao de
workers’ own dining area was in poor Moçambique
condition, and water was seeping through

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WILDLIFE AND ENVIRONMENTAL PROTECTION


Government launches ‘Operation Mozambique is the first country to add
Tronco’ in six provinces areas to Great Limpopo Transfrontier
Park
On Wednesday 1 March, the government
launched its ‘Operation Tronco’ forestry The 240,000 hectare Greater Libombos
inspection initiative to combat illegal Conservancy (GLC) is now the first
logging in Cabo Delgado, Nampula, privately owned area to be included as
Zambézia, Tete, Manica and Sofala part of the Great Limpopo Transfrontier
provinces. Park (GLTP) and Conservation Area,
making Mozambique the first country to
The operation hopes to trace the 700,000 add areas to Great Limpopo in terms of
cubic meters of timber thought to be the Great Limpopo Treaty signed in 2002.
logged illegally and valued at MT20-
billion. Up to now, the main infringements The ground-breaking process for
detected by the operation have been in Mozambique, supported by Peace Parks
the unauthorised storage, transportation Foundation, was formalised on Friday 24
and commercialization of forestry February, at a Trilateral Ministerial
resources. Committee Meeting held in Maputo.

Source: Rádio Moçambique

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In addition to including the Greater infrastructure or anthropogenic impacts


Libombos Conservancy to the Great and includes vast unspoilt areas that
Limpopo Transfrontier Park and provide opportunities for the development
Conservation Area, Mozambique will be of true wilderness experiences.
launching an international conference on
conservation and the protection of wildlife. This is where the Greater Libombos
Conservancy lies and how it forms part of
This is according to South Africa’s the GLTP and Conservation Area:
Department of Environmental Affairs, who
says the move is a crucial development Move to combat poaching:
for the enhancement of the
implementation of the International Treaty The GLC is also a key component of the
establishing the Great Limpopo largest rhino refuge area in southern
Transfrontier Park and Conservation Area. Africa and, together with its neighbours, is
at the forefront of the combat against the
The Joint Management Board comprises current rhino poaching epidemic.
of the three partner countries of
Mozambique, South Africa and South Africa’s DEA agrees, saying the
Zimbabwe. new expansion of the conservation area
will give the joint governmental agencies
The Ministers resolved that the process more authority in combating wildlife crime
for the formalisation of this incorporation across the trans-frontier region.
between the countries must be finalised
by the governments of Mozambique and This comes as the DEA announced South
South Africa. Africa’s most recent rhino poaching
statistics, pointing to an overall 10.3%
Why is this expansion of the conservancy decline from 2015 stats.
important?
Despite the drop, the number of illegal
The GLC comprises a total of nine incursions into the Kruger National Park
properties on the eastern boundary of the continues to increase.
Kruger National Park, the Peace Parks
organisation says. For 2016, there were a staggering 2,883
instances of poaching-related activities
It is significant in terms of its (such as poaching camps, contacts,
environmental attributes, as well as its crossings, sightings, tracks and shots
geographic location. fired) in the Park, compared to 2,466
recorded in the same period in 2015.
The GLTP and Conservation Area
straddles the borders of Mozambique, This is an increase of 16.9%.
South Africa and Zimbabwe and
consolidates almost 100,000 square “These criminal gangs are armed to the
kilometres of some of the most teeth”, the DEA says, “well-funded and
established wildlife areas in southern part of transnational syndicates who will
Africa. stop at nothing to get their hands-on rhino
horn”.
“It conserves and protects diverse natural
and cultural assets. It is largely devoid of

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The move to combine three countries’ Rhino horns handed over to BMB
efforts to combat wildlife crime will
hopefully ensure a more acute treat to the On Monday 27 February, the Bureau of
poaching epidemic. Customs (BoC) of the Philippines formally
handed over rhino horns worth P74-million
Adding the GLC to Great Limpopo TFCA to the Biodiversity Management Bureau
has major positive implications for (BMB). The horns in question were seized
conservation, tourism, community in September 2012.
development and countering wildlife
crime. The handover of the contraband, originally
shipped from Mozambique which
Together, the GLTP Trilateral Ministerial suggests that the rhinos were African,
Committee also declared that in terms of serves to demonstrate the Philippines’
conservation and protection, the countries “strong commitment to the global fight
will reaffirm the implementation of the against illegal wildlife trade”, the
wildlife translocation programme for the Department of Environment and Natural
GLTFCA and the continue the restocking Resources (DENR) said in a statement.
of species into key protected areas in the
Mozambican component of the GLTFCA. BMB Director, Theresa Mundita S. Lim,
for her part, said the handover reaffirmed
the country’s resolve to end illegal wildlife
trafficking and trade.

“We may not have rhinoceros in our


country, but this does not mean we will
allow others to use them and other such
wildlife for unscrupulous gains and
contribute to their extinction as a species”,
said Lim, adding that they would co-
ordinate with Mozambique for the possible
return of the specimens.

Should the African state refuse to accept


them, the rhino horns will be disposed of
properly or destroyed, she added.

The horns were seized by the BoC in


2012 at the Manila International Container
Port. They had been declared as cashew
nuts and shipped by Chistevas Import and
Export from Maputo City.

Republic Act No. 9147, also known as the


Wildlife Resources Conservation and
Protection Act, designates the BMB’s
Wildlife Rescue Centre as depository of
Source: Traveller 24

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seized wildlife specimens, their derivatives city of Matola). Many will also remember
or by-products. that rhino horn was stolen from the
secured police storage facility by PRM
The Philippines’ fight against illegal agents. The remaining rhino and ivory
wildlife trafficking and trade is in line with was subsequently destroyed.
its commitment to the Convention on
International Trade in Endangered However, the Asian citizen arrested in
Species of Wild Flora and Fauna (CITES) connection with the Matola seizure
to regulate commercial trade in certain (identified as Ching Dai) has long since
wildlife species, including the critically disappeared.
endangered rhinoceros.
Carlos Lopes Pereira, of the National
Source: Business World Online Administration of Conservation Areas
(Administração Nacional das Áreas de
Mozambique in need for law that Conservação, ANAC), told @Verdade that
punishes buyers and traffickers of he was following the trial – which was
illegal wildlife products scheduled for 5 November that year – but
the defendant disappeared and the court
The fight against poaching in Mozambique no longer responds to his inquiries on the
is progressing as hundreds of poachers matter.
and illegal hunters have been detained.
However, there is no single dealer, In connection with the horn theft from the
trafficker or buyer in custody because the PRM storage facility, numerous suspects
Law on Protection, Conservation and were detained (a PRM inspector who was
Sustainable Use of Biological Diversity also head of the Criminal Investigation
only provides for prison terms only for Police, a PRM principal inspector; a PRM
those who hunt without a license. deputy inspector, a PRM sergeant, an
employee of the Provincial Directorate of
At the request of the Ministry of Environment Land and Rural
Environment and the Attorney-General’s Development in Maputo Province, and two
Office, Law 16/2014 was revised by the civilians); however, there is no information
National Assembly in November last year, on any of them having been tried and held
and as such, all of those directly or accountable for the crimes.
indirectly involved in the devastation of
protected species of Fauna or Flora face “We have a law that works in the favour of
jail time. traffickers … the trafficker could go out on
bail”, laments Pereira.
However, to date, the revised law has yet
to be sent to the President for According to Pereira, even when they are
promulgation, allowing traffickers, dealers known to the authorities, foreign traffickers
and buyers to continue unpunished. and buyers are able to escape via
Mavalane International Airport, or are
Many will recall the police operation in detained and imprisoned but are then
May 2015 which lead to the largest given bail.
seizure of ivory and rhino horn in the
country (340 ivory tips and 65 rhino horns “This use and abuse results in what we
seized from a luxurious residence in the are currently experiencing – almost no

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individuals detained, including foreigners, that were approved by the Assembly of


in connection with trafficking”. the Republic at the same time as Law
16/2014 have since passed on to the
Pereira told @Verdade that the ANAC has head of state and were promulgated.
been working in partnership with the
Attorney-General’s Office, whose “The information I have is that it has
sensitivity to these crimes has evolved already been promulgated”, said the
considerably. Minister at a press conference after the
sixth meeting of the countries responsible
Pereira told @Verdade that during the for the Transfrontier Park.
past year 363 poachers were detained in
the Greater Limpopo Transfrontier Park Faced with the lack of public information
area. on the promulgation, @Verdade contacted
the Presidency of the Republic, which
But in Mozambique’s section, only 82 revealed that: “We have not yet received
poachers have been arrested – many of the Law”, said Arsénio Henriques, the
whom may no longer be detained. At the press attaché of the head of state.
same time, on the South African side, 281
illegal hunters were detained, of whom Source: @Verdade
102 are Mozambicans.
Over 600 poachers and traffickers
A report by the Environmental Research arrested in South Africa
Agency (EIA) indicates that between 2012
and 2014, 539 poachers were detained in “During 2016, the South African Police
Mozambique, 17 of which were fined and Service reported that a total of 680
none were sentenced to prison. poachers and traffickers were arrested for
rhino-related poaching offences nationally.
Against this backdrop, Attorney-General
Beatriz Buchili acknowledged in her report This is a marked increase in arrests from
to the National Assembly last year that the 317 in 2015”, Environmental Affairs
so-called “Conservation Law” was far from Minister Edna Molewa said on Tuesday
effective with regard to the large-scale 28 February.
destruction of conservation areas and
protected animals. From the total number of arrests made,
417 were both within and outside the
As such she defended its urgent revision Kruger National Park.
because the law is “fragile, fundamentally,
in terms of the punishment given to those Minister Molewa said she is pleased with
found in possession of wildlife products the progress taking place at the Kruger
and those implicated in their transport and National Park, as the area is the hardest
sale”. hit by poaching.

@Verdade questioned the Minister of A total of 148 firearms were seized inside
Land, Environment and Rural the park in 2016, and six just outside the
Development, Celso Correia, asking him park.
why Law 16/2014 had not yet come into
In a statement released on Tuesday,
force, especially since many other laws
Minister Molewa highlighted the progress

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made on the implementation of the She expressed her concern on the 46


Integrated Strategic Management elephants that were poached in the
Approach. Kruger National Park in 2016.

She said the strategy, which comprises “The interventions being implemented to
four pillars, namely compulsory counter rhino poaching are also used to
interventions, managing rhino populations, respond to this emerging threat.
long-term sustainability interventions and
new interventions, is yielding the desired “It is clear that more financial resources
results. are required to address this challenge that
we are experiencing in terms of both rhino
All of the four pillars are implemented in and elephant poaching”, Minister Molewa
the context of regional and international said.
co-operation.
Last year, there were 2,883 instances of
Poaching statistics: poaching-related activities (such as
poaching camps, contacts, crossings,
“A total of 1,054 rhino were poached in sightings, tracks and shots fired) in the
2016, compared to 1,175 in the same Kruger National Park, compared to 2,466
period for 2015, representing a decline of recorded in the same period in 2015.
10.3%.
“This is an increase of 16.9%. These
“Specifically for the Kruger National Park, criminal gangs are armed to the teeth,
a total of 662 rhino carcasses were found well-funded and part of transnational
in 2016 compared to 826 in 2015. This syndicates who will stop at nothing to get
represents a reduction of 19.85% in their hands on rhino horn. This decrease
2016”, Minister Molewa said. can be attributed to the efforts of our men
and women on the ground, especially our
She said the progress was made despite rangers”, Minister Molewa said.
a continued increase in the number of
illegal incursions into the Kruger National Ports of entry and exit:
Park.
Last year, the Green Scorpions trained
She said while there has been a decrease 905 border officials on initiatives focused
in the number of rhino killed for their horns on the Illicit International Cross Border
in the Kruger National Park and Movement of Endangered Species.
Mpumalanga, the number of rhino
poached has increased in some other “In December 2016, 90 judicial officers
provinces. from four different countries participated in
a Judicial Colloquium related to the
“This indicates that syndicates are feeling adjudication of crimes relating to
the pressure from the interventions being biodiversity, the result of a partnership
employed in the Kruger National Park. We between Department of Environmental
are therefore prioritising these pressure Affairs, the GEF-UNEP Rhino Programme
points through enforcement operations”, and the South African Judicial Education
Minister Molewa said. Institute”, Minister Molewa said.

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She said the GEF-UNEP Programme has That adds up to 121 fewer rhinos killed
also enabled the renovation of a new during 2016, or 161 fewer than the record
laboratory at the Veterinary Genetics tally of 1,215 rhinos poached in 2014.
Laboratory of the University of Pretoria
where the rhino DNA samples are But it still adds up to roughly three rhinos
analysed. gunned down every 24 hours.

“This additional capacity has also enabled Compare this daily killing rate with the
us to analyse some of the backlog of decade preceding 2008, when annual
routine rhino horn samples. poaching figures barely exceeded double-
digit figures.
“During 2016, we also received rhino DNA
samples from seizures in Mozambique It is true, as Minister Molewa noted, that
and Vietnam. This has enabled us to link rangers and anti-poaching units in South
these seizures to illegal activities in South Africa’s world-famous Kruger Park have
Africa relating to rhino and providing upped their game to the point that rhino
investigators with critical information to killings dropped by almost 20% (662 last
guide further investigations”, Minister year compared with 826 in 2015).
Molewa said.
Yet is also clear that the total rhino
Source: Bizcommunity population in Kruger has dropped. The
latest census suggests there may be
Lies, damned lies and rhino statistics roughly 7,200 white rhinos left in Kruger,
from about 8,800 in 2015.
The latest 10% drop in the national rhino
poaching statistics may sound like good It is quite plausible that the natural birth
news, but it masks the fact that the rate of Kruger rhinos has also been hit
decade-long bloodbath has thinned out hard by several years of drought, but
animal numbers so deeply that rhinos are considering that the park’s white rhino
no longer such easy meat for poachers. population stood at more than 10,000
seven years ago, it is clear that numbers
Poachers now have to work that much have now been thinned out significantly by
harder to fill the order books for the horn poachers.
international crime cartels because the
Kruger National Park rhino population has KwaZulu-Natal:
been hammered since 2008.
What of KwaZulu-Natal, the cradle of
Also, the target has shifted away from the global rhino conservation?
Kruger to KwaZulu-Natal, where there has
been a staggering 38% increase in horn In the late 1800s, there were just 50 to
poaching over the past year. 100 Southern white rhinos left in the world
(all of them in the Imfolozi Game Reserve
Environmental Affairs Minister Edna in KwaZulu-Natal). This tiny remnant
Molewa announced on 27 February that population was multiplied steadily thanks
1,054 rhinos were killed for their horns to the conservation work of the former
nationwide during 2016 – compared with Natal Parks Board and game rangers like
1,175 in 2015. the late Dr Ian Player.

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By 2008, when the continental rhino-killing Some observers argue that news of the
spree really hit South Africa, the tiny impending domestic moratorium sparked
remnant KwaZulu-Natal population had the steady spike in horn poaching from
been used to restock Kruger and other 2008 onwards. They argue that rhino
parks and the national herd had grown to poaching would decline sharply if the
more than 20,000. domestic moratorium and international
ban were lifted.
In stark contrast to the rest of Africa,
South Africa was custodian to more than This also appears to be a tacit
90% of the global population of white acknowledgment that several private rhino
rhino and about 35% of the continent’s ranchers were deeply involved in
black rhino population by 2013. supplying the illegal global rhino horn
trade until at least 2009.
All this painstaking work continues to
unravel. Opponents of a legal trade in rhino horn
argue that South Africa is not in any
Now the poachers have turned their rifle position to prevent illegal or poached
barrels, axes and machetes on the horns being laundered into the proposed
Hluhluwe-Imfolozi Park and other legal trade. They believe that lifting the
reserves in KwaZulu-Natal, killing at least moratorium now will reopen, and possibly
160 rhinos last year, compared with just exacerbate, the illegal global trade.
11 during 2011.
In her briefing statement on Monday,
Compared with last year alone, the Minister Molewa sent out further mixed
conservation group WWF-SA estimates messages on South Africa’s stance on
that rhino poaching in KwaZulu-Natal shot reopening the trade.
up by 38% over the last year in the
province that saved the white rhino On one hand, she asserted that the 2009
species from almost certain extinction just moratorium was “a rational and
over a century ago. reasonable measure that contributed
positively to the conservation and
Earlier this month, Minister Molewa’s protection of the rhino in South Africa”.
department made a surprise
announcement that South Africa – under Now, however, she argues that lifting the
legal pressure from private rhino breeders moratorium can still ensure “the strict
who now own roughly a third of the regulation of a prospective domestic trade
national herd – is planning to lift the eight- in rhino horn” at a time when the
year-old moratorium on domestic rhino commercial international trade in rhino
horn sales. horn is still prohibited in terms of the
CITES.
While the global trade in rhino horns has
been banned since the late 1970s, South But why would anyone want to buy a rhino
Africa still allowed rhino horns to be sold horn on the domestic market today when
on the domestic market for decades. This it remains illegal to sell this commodity
came to an end in 2009. beyond our borders?

Source: Business Day

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Rhino sale bombshell hidden in new extinction in the wild of rhinos will be in
draft regulations the interest of rhino breeders, who will
then control the world market.
The public has until 10 March to respond
to draft regulations by the South African The back story to the announcement is
Department of Environmental Affairs that last year the moratorium on sale was
(DEA) which seek to make widespread challenged by private sector rhino
sale of rhino horn legal and could breeders who won on a technicality.
undermine attempts by CITES to save Minister Molewa took the result on appeal
rhinos. to the Constitutional Court. Then, on 8
February – possibly anticipating losing the
Speaking in a Parliamentary portfolio Constitutional Court appeal – she
committee on Tuesday 21 February, announced new draft regulations, giving
Minister Edna Molewa and DEA the public a mere 30 days to make
biodiversity director Thea Carroll spoke of representations or objections.
the regulations in terms of legalising the
sale of two rhino horns per person, but The effect, if the regulations become law,
failed to mention the devil in the detail is that South Africa will be an almost open
which a closer reading of the regulations market for trading and even exporting
later revealed. rhino horn. This is a slap in the face for
the overwhelming majority of countries
It turns out the two-per-person discussion that voted against the trade in horn at the
was a red herring which effectively CITES CoP17 meeting in Gauteng last
diverted attention of the few attending year and a huge victory for the very few,
MPs from the fact that this only applied to extremely wealthy, rhino farmers and
“a person from a foreign state”. South potential traders who have been lobbying
Africans wanting to buy or sell rhino horn, Minister Molewa for years.
on obtaining a permit, would have no such
restriction and could trade and export as The draft regulations seek to justify the
much horn as they pleased. Foreigners trade through the fiction that it may only
owning rhinos could also do so. be traded for personal purposes, but
leaves out what “personal” may mean. In
Because the paragraph concerning the a lengthy statement on Monday 27
two-horn restriction referred to “a person February, none of these issues were
contemplated” in another part of the addressed by the DEA.
regulations, it was easy to miss the key
point that the “person” referred to was In terms of Article III of the CITES
only a foreign national not domiciled in Convention, as long as the import is “not
South Africa or not owning a rhino. No for commercial purposes”, import and
such restriction was placed on locals. export permits are allowed. If the purpose
is “personal” there is no limit to the
South Africa has the greatest number of number of specimens involved. There is
rhinos in the world and a huge poaching also the exception (for residents) allowing
problem. Legalising trade and export is for export of personal and household
likely to collapse international attempts to effects (Article VII).
protect rhinos. If the trade regulations
become law, the decline and possible

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According to Environmental attorney number of horns to a buyer in Vietnam. To


Cormac Cullinan, “by requiring exports to avoid the restrictions regarding foreigners,
be for ‘personal purpose’ (whatever that he sells the rhino to the buyer. The rhinos,
means) the DEA is obviously trying to of course, stay in South Africa.
create the impression that it is not
contravening CITES by permitting trade Once the foreign buyer has title to the
for commercial purposes”. rhinos, he can then, once the required
import and export permits are in place,
In answer to my question about the import their horns without being bound by
difference between “trade” and “for the two-horn limit. He may even (this is
commercial purposes” upon which the not clear) be able to import horns
export regulations would hang, the DEA previously removed from the rhinos he
responded: owns as part of a dehorning operation.

“An import permit can only be issued if the Of course, the possibility of ensuring use
CITES authority of the state of import is is personal and tracking this use into
satisfied that the specimen (rhino horn) is foreign countries after export is another
not to be used for primarily commercial fiction. What rhino traders will hope for is
purposes. that the regulations will give the
appearance that the trade is under control
“Primarily commercial purposes are and non-commercial, but that once the
defined in a CITES Resolution adopted at horns reach (say) Vietnam, everyone will
the 15th Conference of the Parties, which nudge, wink and look the other way. The
requires that the terms ‘commercial huge black market value of horn will
purposes’ should be defined by the ensure that uncontrolled cheating will take
country of import ‘as broadly as possible’ place.
so that any transaction which is not wholly
‘non-commercial’ will be regarded as A 2014 report by the DEA warned that
‘commercial’. It is … not the South African “one of the most important hurdles South
government’s responsibility to prove that a Africa will need to overcome in order to
country has the necessary legislation.” legalise national trade in rhino horn is to
prove to CITES that internal effective
As the CITES definition goes, you could trade controls have been implemented
fly a Boeing through that without touching and are sufficient to prevent the
sides, which seems what the DEA plans laundering of illegally obtained rhino
to do. The only place the South African horn”. The DEA appears to now consider
draft regulations clearly exceeds CITES’ that they are sufficient, but has not
dictum is by stating that an export permit detailed what they are.
can be issued on the basis of a letter from
the importing country rather than a proper In Parliament, Minister Molewa explained
import permit. This not only contradicts there had been a moratorium on rhino
CITES but South Africa’s own CITES horn sales since 2009 simply because the
Regulations. department needed to “clear its house”.
But all the orders and regulations “are
A possible scenario in terms of the now in place and people are asking why
regulations could be that a private owner we need a moratorium”. Those people are
in South Africa wants to sell a large clearly rhino farmers.

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Minister Molewa did not give details of the particularly nefarious as they directly
“orders and regulations” that would undermine CITES. We should be trying to
warrant ending the moratorium. In fact, eliminate demand for rhino horn, not
the draft regulations suggest a need for stimulate it”.
future regulation, calling for a limiting of
exit ports to OR Tambo Airport and a raft Lifting the trade ban would, of course, not
of DNA, microchip and document be good news for rhinos because there’s
checking which the DEA has still to put in a demonstrable link between the sale of
place. farmed wildlife and poaching. It would
serve to stimulate almost limitless Asian
Its presentation failed to answer a number markets through the sale of limited goods
of pertinent questions: which would not take long to bleed into
illegal procurement through poaching.
 Who did the minister consult in
drawing up the draft regulations Source: Daily Maverick
and how did she arrive at a figure
of two horns per person? Something’s not right in the DEA

 How will an already stretched and On 8 February, the government of South


under-funded regulatory and Africa announced new draft regulations
policing force cope with monitoring permitting the internal trade in rhino horn.
internal trade?
This follows a decision in November 2015
 How will she ensure that the horns when the North Gauteng High Court,
will not enter the illegal Pretoria overturned the previous
international markets? moratorium on the trade in rhino horn.

Author, investigative journalist and


 Is this the first step towards South
environmental activist, Don Pinnock,
Africa putting forward a proposal
suggests in articles published in the Daily
for full international trade in rhino
Maverick and in Independent Online that
horn at the next CITES conference
the moratorium on the trade in rhino horn
in 2019?
was overturned on legal a technicality.
Much appears to hinge on the
The “technicality” he refers to was the
Constitutional Court finding on the
Department of Environmental Affairs
legitimacy of the private challenge to the
failure to properly advertise the measure
moratorium. If it finds against the Minister,
for public comment as required in terms of
it is probable that the moratorium on rhino
the applicable law and its failure to
horn sales will be lifted and trade will
provide the public with sufficient
begin.
information about the proposed measure
According to Cullinan, “When you so as to allow us a reasonable opportunity
consider that South Africa, as a signatory to acquaint ourselves with its complexities
to CITES, has undertaken to work with and to have an adequate say about them.
other countries to ensure that international
However, the Constitutional Court does
trade does not threaten endangered
not see this failure as a mere technicality.
species like rhino, these regulations are
It has ruled repeatedly that the obligation

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to consult is fundamental to our system of in the difficulty conservationists have in


participatory democracy. The Court has seeing the environmental right as a
held that a proper consultation process is human right. I think this failing prevents
essential so that citizens not only to have them from understanding the importance
a chance to speak on the laws that of consultation.
government makes but also to enjoy the
assurance that we will be listened to. This Section 24 of the Constitution gives us the
is seen as vital to the process of right to an environment that is not harmful
transforming South Africa given the fact to our health and wellbeing. Government
that so many South Africans were is obliged to take reasonable legislative
“historically silenced”. measures to protect our environment for
the benefit of present and future
This is probably explains why two courts generations.
have already refused to grant the
Department of Environmental Affairs leave The environment when used in this sense
to appeal the judgement. is not nature but rather the impact nature
has on our health and wellbeing. South
However, it does not explain why the African law explicitly states that all
Department now seeks to legalise the environmental law-making and
trade in rhino horn. After all, the court environmental management, including
found that the idea of a moratorium on the laws that promote conservation, must put
trade of rhino horn was rational and could human health and wellbeing uppermost.
be legally enforced provided this was
done properly. This change in approach The legislated environmental principles
is no doubt why conservationists are which must inform environmental law
outraged that trade in rhino horn will now making and environmental management
be legalised within South Africa. are largely directed at achieving this.
However South Africa’s environmental
It is surprising, given this controversy that tradition is strongly, one might even say
the Department of Environmental Affairs fundamentally, conservationist in its
has still not provided supplementary outlook.
information that explains why these
regulations are necessary, what they are This has not changed since 1994 with the
intended to achieve, or what the result that conservationist thinking and
anticipated cost and benefits will be. This values still dominate South Africa’s
failure means that these regulations can environmental space despite laws that
also be challenged on the basis that a require a broader perspective. These
proper consultation process was not values misalign with the new constitutional
followed. order and its values.

This failure to get it right yet again invites The result is that we have seen the
a much more important question and development of a body of conservationist-
opens a very big can of worms. orientated environmental law and
regulations over the last 20 years or so
The question is how is it possible that the that often ignore the broader social and
Department of Environmental Affairs has economic context in which these laws
got it wrong again? I think the answer lies should be framed. This style of

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environmental law increasingly misaligns stockpiles of rhino horns, nearly all legal,
with the Constitution and the principles all potentially extremely valuable.
which ground the rule of law in this
country. This, in turn, is making our Farming rhinos:
environmental laws increasingly difficult to
implement and increasingly vulnerable to Some stockpiles come from rhinos who
legal challenge. have died of natural causes, others are
contraband seized at customs or
The fact that many of our environmental confiscated from poachers, and many
laws can be set aside on account of the arise from dehorning programmes
Department of Environmental affairs undertaken by both government and
failure to consult properly is the can of individuals. Rhino farmers in South Africa
worms. dehorn their rhinos to discourage
poaching and therefore protect the
What makes this particularly troubling is endangered species, but breeding and
that this has not been accidental. The dehorning rhinos also creates a potential
Department of Environmental Affairs has cash crop.
until very recently ignored warnings about
the legality of its consultation process Conserved, inventoried, often micro-
preferring, instead to adopt a “take us to chipped and secured in strong rooms and
court” approach. safes, rhino horns are stockpiled largely
because of their future market value. That
I think urgent steps need to be taken to future value rests on an assumption that
remedy this problem least environmental the current high demand for rhino horn,
law and environmental management predominantly for use in Vietnamese
collapses under the weight of its own medicine, will continue indefinitely, and
inherent weaknesses. So, while I think cannot be overcome or countered. That
that the Department needs to be assumption itself rests in part on
congratulated for considering that a lawful characterising the demand for rhino horns
trade in rhino horn may contribute both to as “traditional”.
the survival of rhino and our health and
wellbeing, it must also be criticised for the No one disputes that medicinal and
manner in which it proposes executing recreational use of rhino horn, mostly in
this initiative. Vietnam, is directly responsible for high
levels of poaching in southern African
Source: Politics Web countries, which continues to threaten the
species with extinction. But while it is true
What drives the demand for rhino that rhino products are mentioned in a
horns? variety of traditional Vietnamese medicine
texts, the scale of the Vietnamese market
Reports in February that the South African has risen hugely over the past 15 years:
government was considering lifting the this demand is a modern phenomenon.
2009 domestic moratorium on trade in
rhino horns brought into focus something Influenced in part by rumours of a
that is not necessarily obvious to those prominent senior government official
outside of that country: there currently being cured, sick and dying cancer
exist in South Africa numerous large sufferers and their families are directly

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targeted by unscrupulous vendors. In for us to claim that the palaeo diet is


addition, over the past decade and a half traditional, and it would be even more odd
rhino horn has become, a party drug, a for us to claim that if it is traditional it will
health supplement, and a hangover cure – always exist: the palaeo diet is very
a luxury product conspicuously consumed obviously both modern and a fad.
by newly wealthy elites.
Devastating as it is to the welfare and
It is often argued that (as with other high- survival of rhino species, the Vietnamese
demand products such as narcotics) market for rhino horns is both faddish and
regulation rather than prohibition is the reversible. Education and marketing
best solution, and one that will best campaigns that try to make its
safeguard animal and human welfare, and consumption socially unacceptable are as
habitat. This argument rests on an achievable in Vietnam as campaigns were
assumption that the Vietnamese market is the UK to make once popular practices
far more culturally established than it in like as drink-driving socially unacceptable.
fact is. The contemporary medicinal
consumption of rhino horn is presented as This has been done for rhino horns
a traditional practice that people are before: in the 1970s and 1980s, the
culturally committed, indeed almost Yemeni demand for rhino horn dagger
obliged, to perpetuate. handles also had a devastating effect on
rhino populations in southern African
Rhino horn: a modern fad? countries. A mixture of legal measures
and social pressure, sometimes from the
The fact that rhino horn medicine lacks highest levels of the Yemeni state,
scientific or medical validity leads rather coupled with awareness campaigns about
too quickly to an implication that its harm done to rhinos in the wild, were fairly
consumption must be “traditional” effective in making the practice of gifting
(‘medieval’ is another variant). However, daggers with rhino horn handles socially
the world is full of beliefs and practices unacceptable.
which are irrational, superstitious, or
without scientific validity, but that does not Whether rhino horn dagger handles were
mean that they are necessarily traditional: “traditional” or not, it was clearly possible
they can be all these things and still be to confront the practice.
modern or even post-modern, perhaps
high-tech, and without historical There are many good arguments for both
precedent. ending the stockpiling of rhino horns and
for destroying current stockpiles. Given
It is often the case that promoters of a that this is not happening, we should ask
medicine or foodstuff might have an who it is that has an interest in ensuring
interest in giving it a historical or the perpetuation of a Vietnamese demand
traditional pedigree, but such claims need for rhino horn. Vendors, traffickers and
to be critically assessed rather than poachers, of course, have an interest in
uncritically reproduced. Believing in the the market continuing.
restorative or curative properties of the so-
called palaeo diet, for instance, is clearly a A 2012 report in the Oxford Review of
belief held by parts of our modern society, Economic Policy made the intriguing and
and is a recent invention. It would be odd worrying suggestion that a speculator

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lawfully stockpiling large quantities of that modern faddish behaviour and the
wildlife commodities might have an peoples who engage in it are a modern,
interest in “depressing” wild stock in order traditional, or incapable of change, would
to maximise profit: banking on extinction be helpful in reducing demand for rhino
in the wild, in other words. products, but those who farm and
stockpile might have reason to present
Having a monopoly on supply is one way rhino horn consumption in Vietnam as a
more established and venerable practice
of controlling a market, but maintaining than it in fact is.
demand is also crucial. Who is currently
speculating in rhino horn stockpiles, and Source: The Guardian
why? Confronting and correcting the belief

END

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