MACAUHUB NEWS SUMMARISED FOR MOZAMBIQUE From 01st July to the 08th July 2014 Portuguese companies invest US$1.5 billion in Mozambique July 1st, 2014 Portuguese companies have invested around US$1.5 billion in Mozambique, Mozambique’s ambassador to Portugal, José Augusto de Jesus Duarte said Monday. Speaking about the State visit by Mozambique’s President Armando Guebuza, to Portugal due to begin Monday the ambassador said that as a result of that investment Portugal was the largest foreign employer in Mozambique and provided jibs to around 34,000 Mozambican citizens. In the last three years, despite the economic and financial crisis at home, Portugal was the third biggest investor in Mozambique after South Africa and China , which is seen as positive by the director-general of the Mozambican Centre for Investment Promotion (CPI), Lourenço Sambo. Cited by Mozambican daily newspaper Notícias Sambo, who is leading a group of over 30 Mozambican businesspeople accompanying the President, said that “if we look at the first quarter of this year we can say that Portugal topped the list of biggest investors in Mozambique.” “From an economic point of view, relations between the two countries are excellent and we hope they will be consolidated further on this visit during which there will be a Mozambique-Portugal business seminar attended by around 200 Portuguese and Mozambican businesspeople,” Sambo said. The main focus of investments is the energy, construction and tourism industries as well as a considerable number of projects managed by Portuguese investors. A summit meeting between Portugal and Mozambique recently took place in Maputo, during which 19 agreements were signed and 133 million euros provided for investments in Mozambique. Finland donates 8 million euros to support small-scale farmers in Mozambique Finland plans to donate 8 million euros to help 14,00 small-scale farmers to increase production in Sofala and Zambézia provinces, central Mozambique, the Finnish embassy announced in Maputo. The embassy also said that the aid would be provided through Mozambican non-governmental organisation Ajuda de Povo para Povo (ADPP), as part of an agreement signed for that purpose. “This aid is intended to provide members of associations, particularly women, with the tools they need to increase the production and yields of the small-scale farms and, thus improve their food safety as well as providing income,” Finnish ambassador, Seija Toro, said cited in the statement. The funding will create over 300 small-scale associations, which will provide training to over 14,000 members in the districts of Namacurra and Nicoadala, Zambézia province, and in the districts of Maringue and Caia, in Sofala province the statement said. Mozambican president urges Portugal to invest “a bit more” July 2nd, 2014 Mozambican President Armando Guebuza called on Tuesday for stronger economic relations and bilateral cooperation, considering that Portugal “can still do a bit more” in terms of investment in his country, despite the crisis. Guebuza, who is on an official visit to Portugal until Thursday, made his comments in Lisbon after a working meeting with Portuguese President Cavaco Silva. He highlighted “the excellent level of political and diplomatic relations between the two countries.” Stressing that Mozambique “continues to grow from the economic standpoint” and that “investments also continue to flow” to his country, Guebuza said that Mozambique “already counts” on Portugal in that process, though there is still room to grow. Cooperation cannot be limited to the economic and investment area but “has to continue being extended to the social area, which is very important” along with training and health, said the Mozambican head of state, who recalled “the dramas” Africa faces with diseases such as malaria. Cavaco Silva highlighted in turn that cooperation between the two countries covers various areas, namely “culture, news media and cooperation between universities.” He mentioned the existence of research projects in the Portuguese language field and in personnel training. Regarding his trip, due to the “kind and friendly invitation from Portugal” extended by Cavaco Silva, Guebuza said he could attest to the quality of political and diplomatic relations as well as personal relations, indicating that the visit was one of the last official acts in the final stretch of his last term. Indian state consortium to propose purchase of Rio Tinto’s mining assets in Mozambique International Coal Ventures Ltd (ICVL), a consortium of Indian state-held companies, plans to present in the near future a US$200 million bid to purchase the three mining assets held by the Rio Tinto group in Mozambique, reports the Indian press. The Anglo-Australian Rio Tinto group controls 100 percent of the Zambeze and Tete Oriental coal projects and 65 percent of the Benga mine, where India’s Tata Steel group holds the remaining 35 percent. All are located in Tete province. “ICVL held preliminary talks with officials from the group in Mozambique and should submit a bid of US$200 million within 15 days to buy all of Rio Tinto’s assets,” a source from the Steel Ministry told the Press Trust of India news agency. The source added that the mines have estimated reserves of 200 million tons of coking and steam coal and that “it usually costs US$1 million to buy a mine that has a million tons of coal.” In November 2007 Tata Steel bought a 35 percent stake in the Benga mine from the Riversdale Mining Company, which then controlled the mine. Riversdale was acquired by the Rio Tinto group in April 2011. Indian state consortium to propose purchase of Rio Tinto’s mining assets in Mozambique International Coal Ventures Ltd (ICVL), a consortium of Indian state-held companies, plans to present in the near future a US$200 million bid to purchase the three mining assets held by the Rio Tinto group in Mozambique, reports the Indian press. The Anglo-Australian Rio Tinto group controls 100 percent of the Zambeze and Tete Oriental coal projects and 65 percent of the Benga mine, where India’s Tata Steel group holds the remaining 35 percent. All are located in Tete province. “ICVL held preliminary talks with officials from the group in Mozambique and should submit a bid of US$200 million within 15 days to buy all of Rio Tinto’s assets,” a source from the Steel Ministry told the Press Trust of India news agency. The source added that the mines have estimated reserves of 200 million tons of coking and steam coal and that “it usually costs US$1 million to buy a mine that has a million tons of coal.” In November 2007 Tata Steel bought a 35 percent stake in the Benga mine from the Riversdale Mining Company, which then controlled the mine. Riversdale was acquired by the Rio Tinto group in April 2011. Vietnam funds assessment of Mozambique’s real agricultural potential Vietnam has decided to donate US$2 million to Mozambique to evaluate Mozambique’s real potential for food crop production, Mozambican daily newspaper Correio da Manhã reported. Noting that the US$2 million covered the expanses of a programme that will be carried out over three year in a number of areas of the country, the newspaper said that at the beginning of the year Vietnam had sent six agricultural specialists to Mozambique to support the national food safety programme. Beyond agriculture, education and communications, Vietnam is interested in diversifying its cooperation with Mozambique, which sees aquaculture and transport as strategic in its cooperation with Vietnam. The sea transport sector, for example, is of capital importance as the country has such a large coastline, according to the Ministry for Planning and Development. Mozambique’s third mobile phone operator, Movitel, is a partnership between Mozambican group SPI – Gestão e Investimentos (20 percent), Ivespar (10 percent), a subsidiary of the SPI group and Viettel (70 percent), which is 100 percent owned by the Vietnam Defence Ministry. Mozambican Tax Authority rules out immediate drop in tax on extractive industries July 3rd, 2014 The president of the Mozambican Tax Authority (AT) Wednesday ruled out the possibility of reducing tax on the country’s extractive industries “in the short term,” but noted that there could be “exceptional and case-by-case,” reductions. Commenting on a recent call to the Mozambican government by mining company Vale Moçambique to reduce the tax burden on the coal sector, which is facing constraints due to a drop in international prices, Rosário Fernandes said that “sustainability of the entire State Budget” does not allow for the “implications” of such a drop. “Vale took the business decision to do it [request a tax reduction], which is fair, but the law is based on tax universality, equitability and justice. This means it is applicable to everybody,” said the president of the AT on the sidelines of a meeting in Maputo on extractive industries transparency. Despite ruling out the possibility of a “drop or a rise” in the sector’s tax burden he said that, “on an exceptional and case.by-case basis” the Mozambican government may “analyse individual situations,” that may lead to a reduction of value-added tax (IVA) and income tax (IRPS and IRPC). “In very specific situations there can be one-off reviews and this also happens with income taxes. For sugar companies, soap and oil companies that has been the case and [these areas] do not pay 32 percent [in IRPC corporate tax]. What the State does is to establish how long that exception will be applied, and that is normally for five years,” he said. The sharp drop in the price of coal on the international market led to Vale Moçambique posting a loss of US$44 million in the first quarter of 2014, and the company’s director, Pedro Gutemberg called on thPresident Armando Guebuza invites Portuguese businesspeople to invest in Mozambique The President of Mozambique, Armando Guebuza, Tuesday invited Portuguese businesspeople to invest in Mozambique, as, he said, it was a country where large and small projects complemented rather than contradicted each other. At the opening of the Mozambique/Portugal business seminar organised as part of a State visit to Portugal, Guebuza said that Mozambique was a country where oil and gas discoveries had improved the business climate and attracted investment. In 2007, according to Guebuza, the Mozambican government set up Special economic Zones and Duty-Free Zones to house anchor investment projects to create jobs and generate wealth for the country’s social and economic development. “Mozambique is no longer just a country of hopes and dreams and so I am inviting Portuguese businesspeople to give their contribution by establishing business partnerships in a climate of mutual respect and respect for the Mozambican legal framework,” Guebuza said. According to Guebuza, the business climate in the country is driven by macroeconomic stability and average growth of 7 percent that the country has seen for the last 15 years. The Portuguese Prime Minister, Pedro Passos Coelho, reiterated that business relations between Portugal and Mozambique were on a high and added that, in 2013, foreign direct investment (FDI) by Portugal in Mozambique totalled 130 million euros and created 10,000 new jobs. Payments from the 134 million-euro credit line for business cooperation, according to Passos Coelho, are a sign of Portugal’s wish to raise the awareness of international investors of Mozambique as a destination for their investments. Mozambican government to “consider a tax reduction,” as a way of helping reduce the costs of the mining operation. Portuguese insurance broker expands to Mozambique and Cabo Verde MDS, the insurance brokerage of Portuguese group Sonae, plans to expand this year to Mozambique and Cabo Verde (Cape Verde), after setting up a company in Angola in 2013 and operating since 2002 in Brazil, the company’s chief executive said. Dias da Fonseca told Portuguese financial daily, Diário Económico that the project to expand further into Portuguese-speaking African markets “is immediate” and that aim “is to be a benchmark brokerage,” not only to support Portuguese companies in those countries but also to “internationalise the economy” of those markets. MDS, which last year posted revenues of 51 million euros, is the Portuguese leader in its sector, is in the “top three” in Brazil and plans to achieve this level in Angola this year. MDS is also part of Brokerslink, a worldwide network of brokers that share their business knowledge that was set up in 2004 after Dias da Fonseca set a challenge for international partners to set up such a network. According to the MDS CEO, “Brokerslink is perhaps the most important network in the world, generating US$15 billion in premiums and is present in over 100 countries.” Savannah Resources concludes test drilling in Mozambique Savannah Resources, formerly African Mining and Exploration, has concluded test drilling at the Jangamo heavy sands project in southern Mozambique, the company said in a statement. The aim of this initial programme was to locate high quality mineral deposits near the surface. The results of lab analyses are expected in the next few weeks. In August, the company, which is listed on the London Stock Exchange’s Alternative Investment Market (AIM), plans to start test drilling to establish the size of deposits and the minerals in them by the end of the year. Chief Executive David Archer said that the initial programme had detected some high concentrations of heavy minerals and that six areas were identified based on a visual inspection of the samples collected. The Jangamo project, in Inhambane province, covers an area of 180 square kilometres in an area of extensive dunes and is immediately west of the Mutamba deposit, operated by mining group Rio Tinto. Coastal shipping returns to Mozambique July 4th, 2014 Coastal shipping is once again linking the coast of Mozambique, which is 2,400 kilometres long, after many years of complete inactivity due to the local economic climate, according to Mozambican daily newspaper Notícias. The newspaper said that ships loaded with locally- or foreign-produced goods were putting in at the country’s main ports of Maputo, Beira, Quelimane, Nacala and Pemba. With government support the shipping is carried out by an operator called Restore, which in its first year of business (in 2013) carried around 800 containers, 350 of which were empty, at the port of Beira alone. The chief executive of Cornelder de Moçambique, the company that manages the port of Beira, said that coastal shipping is more profitable compared to transporting goods by road and goods reach consumers at much cheaper prices. Carlos Mesquita also said that in this short space of time it is clear that there is a greater variety of goods on offer in the main urban areas along the coast although prices continue to rise when travelling into the interior of the country. Mozambique considers transforming natural gas into liquid fuel Mozambican state oil and gas company Empresa Nacional de Hidrocarbonetos (ENH) has agreed with South Africa’s Sasol and Italy’s ENI to carry out a pre-feasibility study for construction of a factory to transform natural gas into liquid fuel. The study is the immediate result of a memorandum of understanding signed by all three companies and the factory, which will be fed by natural gas extracted in the Rovuma basin is expected to have an initial production capacity of 96,000 barrels of liquid fuel per day. ENH and ENI are partners in the Area 4 block of the Rovuma basin and Sasol is carrying out the Pande and Temane project with ENH and has the technology to transform gas into liquid derivatives. According to Mozambican daily newspaper Notícias the study is the result of efforts by ENH to find a technical partner to build a gas-to-liquids factory with a view to producing liquid fuels that are essential to the Mozambican economy. The chairman of ENH, Nelson Ocuane, was cited in a statement published by the company as saying that, alongside liquid natural gas (LNG) production, which is the anchor project of gas exploration in the Rovuma basin, the company has prioritised finding projects for mass local use of the natural gas. “Establishing a project of this kind will allow the country to produce liquid fuels from natural gas, such as diesel and petroleum, for example, and to reduce its dependence on imports,” said Ocuane Mozambican delegation visits Macau to study gaming sector management A delegation from Mozambique is due to travel to Macau soon to study the territory’s experience of gaming and gambling management, said the new assistant secretary-general of the Forum for Economic and Trade Cooperation between China and the Portuguese-speaking Countries. Noting that the aim was to help Mozambique develop its gaming industry, Vicente de Jesus Manuel told Macau newspaper hojemacau that his home country (Mozambique) has “a strategic location for development of the sector.” “Also given that gambling is legal in Mozambique, the delegation from my country will come to Macau to gather information on how to introduce improvements to the sector, said Jesus Manuel. Referring specifically to Macau the new assistant secretary-general of the permanent secretariat of Forum Macau said that the territory was highly developed in the areas of services, conference organisation and raising capital. Vicente de Jesus Manuel, who has been involved in Forum Macau since it was created in 2003, made a positive assessment of the activities carried out thus far and noted the mutual knowledge of the various members and that fact that staff from all the countries had benefitted from training in Macau. Mozambican tuna company Ematum due to start fishing this year July 7th, 2014 Mozambican tuna fishing company Empresa Moçambicana de Atum (Ematum) is expected to start fishing before the end of this year following the arrival in Mozambique, due in September, of the first five fishing vessels ordered in France, said Mozambique’s Fishing Minister, Victor Borges. The minister also said that the company, which is 67 percent-owned by the Mozambican state and 33 percent owned by private investors, would only be fully operational in 2015 with the expected arrival of another 16 fishing vessels, according to Mozambican daily newspaper Notícias. Borges who was speaking recently in Maputo gave no details about the company’s operations, explaining that this was sensitive business information and that publicising it could affect the company’s competitiveness. He did say, however, that in total the first five fishing vessels were expected to catch 1,500 tons of tuna per year. Ematum’s creation caused some controversy as some donor countries questioned the counter-guarantee given by the Mozambican state for a loan of US$850 million to order the fishing vessels from a shipyard in northern France. The counter-guarantee caught the so-called Group of 19 by surprise as it was never mentioned by the Mozambican government, was so large and was a flagrant violation of the State Budget for 2013. Tuna fishing in Mozambique is currently carried out by over 100 fishing vessels, almost all of which are foreign, notably from Japan and Europe, and there is just one Mozambican tuna boat. As part of efforts to ensure that tuna fishing is carried out mainly by Mozambican operators, the Fishing Minister said that negotiations were underway with Japan to register some fishing boats in Mozambique. Japan pays for new fish market in Maputo, Mozambique July 8th, 2014 Construction of a new fish market in Maputo, the capital of Mozambique, was paid for by aid from Japan and the new facility is expected to start operating by August 2015, Mozambique0s Fishing Minister said recently at the laying of the first project’s stone. The market, which is expected to cost around US$11.3 million, will have 40 kiosks, 100 stalls with equipment such as cold storage units, ice machines, areas for gutting fish and a solid waste treatment system, along with other services. The Japanese International Cooperation Agency (JICA) has provided US$8.6 million for the project, the Maputo city council has provided US$1.4 million and the remainder will be secured from the State Budget. “This new facility will drive artisanal fishing production and other related activities and will therefore be of value to fishermen, fish sellers, municipal residents and market goers,” said Borges. The Minister also said that artisanal fishing in Mozambique accounts for around 85 percent of catches in the country and in 2014 was responsible for 196,000 tons of a total 220,000 tons overall. First hotel to be built in Angoche, Mozambique The first hotel to be built in the city of Angoche, In Mozambique’s Nampula province may start operating this year, the head of Economic Activities Services for the district, Miguel Massunda Júnior told Mozambican daily newspaper, Notícias. The hotel, construction of which is expected to cost US$664,000, is owned by Mozambican group Kirimba and will offer 42 beds along with other related services, such as a restaurant. Massunda Júnior also told the newspaper that once the hotel opens to the public the city will finally have better quality accommodation and the number of beds available will increase from 67 to 109. Angoche now has three bed and breakfast units – Parapato, Mafamede and Sporting – as well as some private homes that take in overnight guests. With the exceptions of the provincial capital Nampula and the port town of Nacala, Angoche is one of the few municipalities that has the facilities to become one of the busiest urban areas in the province, particularly in economic terms, as it has electricity, running water, mobile and fixed-line telephone services and banks. Most of the 172,000 inhabitants of Angoche work in the agricultural, fishing and informal retail sectors. Cassava production in Mozambique expected to reach 14.7 million tons in 2014 Cassava production in Mozambique is expected this year to reach 14.7 million tons, which will be an increase of 5 million tons on the average for the last five years, said the Mozambican Ministry for Agriculture. In a statement cited by Mozambican daily newspaper Correio da Manhã the ministry said that, regardless of the rise in production, “Mozambique has yet to achieve satisfactory levels in terms of the quality of the tuber and a greater surplus of flour.” Cassava is the second most important crop in Mozambique and is one of the main sources of food for the country’s population, particularly in rural areas, which are home to over 80 percent of Mozambique’s more than 23 million inhabitants. Cassava production is mainly focused on the provinces of Cabo Delgado, Nampula, Zambézia and Inhambane, and carried out in the family-base agricultural sector, according to the Ministry for Agriculture. Macauhub News Agency
Posted on: Wed, 09 Jul 2014 06:11:32 +0000
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