Browsing: Mozambique

US dollar notes used in Money Laundering
  • Mozambique has been given two years to improve Anti-Money Laundering Framework or face bans on international financial transactions.
  • Mozambique was placed on the grey list of the FATF for non-compliance with anti-money laundering and terrorist financing.
  • If Mozambique fails to comply with the FATF standards, it will be backlisted under non-cooperative countries and territories (NCCTs).

The Financial Action Task Force (FATF) has given Mozambique two years to improve its framework to prevent and combat money laundering and terrorist financing. Authorities in Maputo will suffer wide sweeping bans in international financial transactions if they fail. Currently, policymakers in the country have their feet on the gas pedal, sealing leakages in Mozambique’s financial flows.

Under pressure, the government has set up an executive committee led by Luís Cezerilo to seek Mozambique’s removal from Grey List. The listing has placed the country among the most vulnerable to crimes of money laundering and terrorism …

Johannesburg South Africa
  • Nigeria, South Africa, Egypt, Morocco, and Kenya are all expected to raise borrowing costs within the next two weeks
  • In contrast, monetary authorities in countries such as Ghana and Angola, where inflation is on a downward trend, are expected to maintain current rate
  • US monetary tightening could slow due to banking turmoil, weakening demand for the dollar.  

Major central banks in Africa are preparing to raise interest rates in order to combat persistent inflation and prevent a sell-off in their assets exacerbated by an uncertain financial system following the recent collapse of US lender Silicon Valley Bank and stress at Credit Suisse Group AG.

Nigeria, South Africa, Egypt, Morocco, and Kenya are all expected to raise borrowing costs within the next two weeks.

In contrast, monetary authorities in countries such as Ghana and Angola, where inflation is on a downward trend, are expected to maintain current rates. Six smaller African

Mozambique's public debt
  • Mozambique’s public debt is expected to drop below 100% in 2023, boosted by the country’s improving economic growth and higher gas revenue
  • S&P Global Ratings states Mozambique’s ability to service its rising debt hinges on TotalEnergies SE’s liquefied natural gas project, which has stalled due to terrorism
  • TotalEnergies is investing billions in its gas project located in the Cabo Delgado province of Mozambique

Mozambique’s external public and publicly guaranteed debt surged from 61% of GDP in 2016 to 104% in 2018, as undisclosed liabilities were exposed. This led to an unbearable debt service burden, causing Mozambique to default on its debt in 2016. Consequently, credit rating agencies lowered the sovereign’s ratings to selective or restricted default, while the World Bank and the IMF reclassified Mozambique’s external debt as “in distress.”

The revelation of the “hidden” loans had a significant impact on Mozambique, leading to a prolonged economic downturn. The country’s …

Mozambique Africa
  • Mozambique government acknowledged that not all of the objectives outlined in the 2022 Economy and Social Plan and State Budget (PESOE-2022) had been accomplished
  • According to data from the National Statistics Institute (INE), Mozambique’s economy expanded by 4.12 percent in contrast to the 2.9 percent predicted at the start of the 2022 fiscal year
  • The Government  plans to use $250 million Mutual Guarantee Fund from the world bank to support small and medium-sized businesses in Mozambique once the fund gets approved.

The government of Mozambique has acknowledged that not all of the objectives outlined in the 2022 Economy and Social Plan and State Budget (PESOE-2022) have been accomplished but it remains positive that the gains will rollover to this year.

The government set 575 targets in 2022, but only achieved 433 of them, or 75% of the target, according to Executive Spokeswoman Ludovina Bernardo. The remaining 142 targets, or …

Raw cashew nut in sacks ready to be sold, Mogovolas district, Nampula province, Mozambique.

The Cashew Industry Association (AICAJU) does not identify with the current model, which assigns the government the leading role in setting prices. “AICAJU reinforces its position already expressed previously, and once again appeals to the need to let the market work, since this is what will dictate the real reference price,” reaffirms the association’s Julina Harculette.

In 2021, Harculette said, the Mozambican cashew industry processed around 32,663 tons of cashew nuts last year when the reported total production was 146,000 tons, an increase of 6.52 per cent against the previous year. In 2020, 30,664 tons of cashew were processed in Mozambican cashew industries.

According to Tridge, Europe is the world’s largest importer of cashew nut kernels, accounting for 35-40 per cent of global cashew import value. The value of European cashew nut imports increased by an average of 2 per cent a year in the 2017-2021 period, and volumes increased …

Eni’s Coral-Sul floating liquefied natural gas vessel off Mozambique’s northern coastline.

Eni, as delegated operator of the Coral South project on behalf of its Area 4 Partners (ExxonMobil, CNPC, GALP, KOGAS and ENH), confirmed that the first shipment of liquefied natural gas (LNG) produced from the Coral gas field, in the ultra-deep waters of the Rovuma Basin, departed from Coral Sul Floating Liquefied Natural Gas (FLNG) facility.

“The first shipment of LNG from Coral South project, and from Mozambique, is a new and significant step forward in Eni’s strategy to leverage gas as a source that can contribute in a significant way to Europe’s energy security, also through the increasing diversification of supplies, while also supporting a just and sustainable transition. We will continue to work with our partners to ensure timely valorisation of Mozambique’s vast gas resources,” commented Eni CEO Claudio Descalzi.

As part of its exploration activity offshore Mozambique, Eni discovered Coral South gas field in 2012 and took …

Mozal Aluminium. Mozambique’s aluminum exports may be exposed to an annual CBAM levy in the order of €350 million per year. [Photo/Mozal Aluminium]

Mozambique may, however, be offered a lifeline. In its recent position on CBAM, the European Parliament has proposed an amendment to the CBAM legislation through which revenues generated by the CBAM levy could be used to finance least developed countries’ efforts towards the decarbonisation of their manufacturing industries.

If accepted, the funding could be applied to support the implementation of a green industrialization process in the country fuelled by accelerated investments in Mozambique’s unique renewable energy assets.

The trialogues between the European Parliament, the Commission, and the Council on the design and implementation of the CBAM are expected to continue in the coming weeks, which will lead to a decision on the final form of the CBAM. The result of these discussions will show to what extent the EU will walk the talk on realizing a green transition that “leaves no one behind” and ensures that it supports countries like …

Mozambique gets grant to advance its renewable energy resources.

The support for the 2023-2028 period takes into account that Mozambique is indicated as at the same time one of the countries most vulnerable to climate change and one of the least developed.

Despite the riches of its subsoil, the initiative foresees studies for the production of green hydrogen in Mozambique, and the Belgian Development Agency will supply solar panels to remote areas without connection to the electricity grid.

The supply of potable water and irrigation solutions based on solar energy is also being planned, the statement adds.

Belgium will also support the implementation of a national programme for sustainable waste management, which includes the construction of recycling facilities in Nacala and Nampula, with additional support from the NAMA Facility, a multi-donor fund.…

Mozambique defies debt to become Africa's South Korea

Mozambique, until the Covid pandemic happened, was just 7 years shy of matching or exceeding the record set by South Korea.

The pandemic undermined the southern African country’s economic progress by slowing down critical sectors of economic activity namely tourism, construction, transport, as well as a general decline in the demand for commodity exports. The economy of Mozambique was further undermined by the conflict in the northern province of Cabo Delgado.

Statistics on how many people have been displaced by the conflict vary but they range from 250,000 to 1 million people. At least 850,000 people are estimated to have been dragged below the international poverty line because of the conflict.…

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Can African gas replace Russian supplies to Europe? The landfall facilities of the 'Nord Stream 2' gas pipeline in Lubmin, northern Germany.
  • The war in Ukraine has shown how dependent Europe is on natural gas for power. Before the conflict broke out in February this year, Russia supplied up to 40 per cent of Europe’s gas requirements.
  • As Russia cuts supplies, these nations are rushing to strike deals in Africa as prices soar.
  • Significant investments are needed to build Africa’s trans-regional and intercontinental pipelines to open up access to Europe

The global realignment triggered by the war in Ukraine ushered in a period of transition on the African continent. The current conflict exposed and exacerbated tensions in international agricultural commodity markets existing amid the COVID-19 pandemic. Import-dependent countries with low per capita incomes are particularly vulnerable to shocks occurring amid the war in Ukraine, which further increase their risk of food insecurity.

The agricultural sector is not the only one that is experiencing disruptions; the global energy sector is suffering the same …