NEWS

Government of Mozambique wants to end 2019 with a bank branch in each district

The Mozambican government plans to reach the end of 2019 with a bank branch opened in all 154 districts of the country, the Council of Ministers spokesperson said in Maputo this week.

Ana Comoana, also deputy minister of Culture and Tourism, said that 107 districts already have a bank branch, which means coverage of 69.5%, and the government’s goal is to have the remaining 47 branches open by the end of the year.

“The ‘One district, one bank’ project was established to speed up the process of financial inclusion in rural areas, providing the districts with at least one bank branch,” said Comoana, according to Mozambican daily newspaper Noticias.

On Wednesday, the National Sustainable Development Fund (FNDS) signed a partnership agreement with the Millennium bim bank to open 12 branches in as many districts.

The O País newspaper reported that the Mozambican government has committed to spend some 2 billion meticais (US$31.7 million) on the “One district, one bank” project to guarantee the necessary infrastructure to open bank branches. (macauhub)

World Bank helps Mozambique reduce carbon emissions

The World Bank has announced that it will grant up to US$50 million to Mozambique to help the country reduce carbon emissions and deforestation, according to a statement released this week in Washington.

Mozambique and the Democratic Republic of Congo were the first two of 19 countries to sign these contracts financed through the Forest Carbon Partnership Facility (FCPF) Carbon Fund, managed by the World Bank, according to the statement.

Mozambique signed the agreement on February 1, unlocking a grant that could reach US$50 million depending on the results, while the Democratic Republic of Congo, which joined the programme in late 2018, can receive up to US$55 million.

About 43% of Mozambique’s territory is covered by forests (34 million hectares) that have been severely deforested in recent years by logging trees for timber exports.

The agreement aims to reduce deforestation and forest degradation, while improving the living conditions of rural communities in nine districts of Zambezia province, with economic opportunities related to smarter land use and biodiversity and ecosystem conservation.

The remaining 17 countries involved in the FCPF Carbon Fund are expected to sign similar programmes, which run until 2024, in 2020. (macauhub)

Mozambique’s domestic public debt continues to rise, central bank says

Mozambique’s domestic public debt including Treasury Bills, Bonds and advances from the Bank of Mozambique reached 112.525 billion meticais (US$1.787 billion) at the end of January, the central bank said.

The latest statement from the Bank of Mozambique’s Monetary Policy Commission on 11 February said domestic public debt increased by 590 million meticais (US$9.3 million) over the period since the commission’s last meeting (13 December 2018).

The same document added that the stated amounts do not take into account other values of domestic public debt, such as mutual leasing and finance contracts, as well as past due liabilities.

Despite the increase in public debt, the Bank of Mozambique said the current conditions of the Mozambican economy are likely to lead to low and stable inflation, of around one digit, in the short and medium term.

This outlook is underpinned by expectations of reduced fuel prices on the international market and price stability in Mozambique’s main trading partners, within a framework of contained aggregate demand.

However, the Commission considered it was advisable to maintain a prudent monetary policy, with the result that the main benchmark market rates were kept unchanged, including the MIMO rate, which remained at 14.25%. (macauhub)

Economist Intelligence Unit says Mozambique is an “authoritarian regime”

Mozambique is currently defined as an “authoritarian regime,” with a rating of less than four out of ten possible points, according to the Democracy Index of the Economist Intelligence Unit (EIU).

Noting that Mozambique’s neighbours Zimbabwe and eSwatini (Swaziland) have the same classification, the EIU reported the index for Mozambique had worsened, falling from 4.02 points in 2016 and 2017, considered a “hybrid regime”, to 3.85 points in 2018, and coming under the classification of “authoritarian regime.”

The latest report on Mozambique said that four indicators remain unchanged, but there has been a drop in the ranking of the country’s electoral process due to irregularities and violence against members of the opposition during and after the municipal elections held in October. 2018.

In economic terms, the EIU report “roughly” maintains forecasts from the previous one report, with a weak growth rate of 3.4% in 2019, before increasing to an average of 5.3% per year in the 2020/2023 period.

The document once again refers to the fact that the economy should start to benefit from preparations for natural gas operations in two blocks in the Rovuma basin. The parties have said they expect to start operating in 2023/2024.

But it also said that there is an over-supply in the world market for natural gas, and it is very likely that major onshore construction works, particularly processing plants, will start only after 2020.

The EIU said that bank credit has been contracting for some key sectors, such as agriculture, telecommunications and construction, due to a stricter monetary policy, which suggests that the performance of these sectors will be weak throughout 2019.

Private consumption, which is expected to grow at 3.7% this year, will tend to slide to negative levels by 2023, offset by public spending, which will see growth rates of between 4.0% in 2019 and 5.9 % by 2023.

Gross fixed capital formation, or investment, which fell by 12.5% in 2018, is expected to grow 8.2% this year, before almost literally exploding at rates of between 55.0% in 2020 and 30% in 2023. (macauhub)

Indian group plans to start importing natural gas from Mozambique in 2024

Indian state group Bharat Petroleum Corporation Ltd (BPCL) plans to import natural gas extracted from the Rovuma basin in Mozambique within five years, a group official said.

The group intends to import 1 million tonnes of natural gas per year from the Area 1 block, where its subsidiary Bharat Petro Resources Ltd (BPRL) owns a 10.0% stake.

The head of the group said that a purchase and sale contract for the gas would be signed with the Mozambique LNG1 Company Pte. Ltd., the trading company of the Area 1 partners.

He added that the group has very bold plans in the natural gas segment, noting that the subsidiary Bharat Gas Resources Ltd. was set up in 2017/2018.

The group is also considering building a terminal to receive natural gas with a capacity of between 1 million and 3 million tonnes per year to meet growing demand in India.

A final investment decision for the exploration of natural gas deposits in the Rovuma Basin Area 1 block, northern Mozambique, is expected to be made in March/April, said the chairman of state-owned oil and gas company Empresa Nacional de Hidrocarbonetos (ENH).

Omar Mithá, speaking on Sunday in New Delhi, India, noted that an Indian company had already signed a contract for the purchase of natural gas to be extracted in the block and added that “the first shipments are expected to reach India in 2024.”

The Area 1 block is operated by Anadarko Mozambique Area 1, Ltd, a wholly-owned subsidiary of the Anadarko Petroleum group, with a 26.5% stake, ENH Rovuma Area One, a subsidiary of state-owned Empresa Nacional de Hidrocarbonetos (ENH), with 15%, Mitsui E&P Mozambique Area 1 Ltd. (20%), ONGC Videsh Ltd. (10%), Beas Rovuma Energy Mozambique Limited (10%), BPRL Ventures Mozambique B.V. (10%), and PTTEP Mozambique Area 1 Limited (8.5%).(macauhub)

Mozambican government creates entity to develop Mphanda Nkuwa dam

The Mphanda Nkuwa Hydroelectric Project Implementation Office (Gmnk) will be the entity responsible for coordinating and carrying out the necessary actions for the development of the project, according to the Mozambican Ministry of Mineral Resources and Energy.

The official statement added that the recently created Gmnk will also be tasked with creation, organisation and upkeep of a database, safeguarding the intellectual property of the studies and all documentation focused on the proper execution of the project.

“It will also propose measures for the resolution of outstanding issues related to the current concession, as well as hiring specialised advisory services in the transactions area (…) giving the process credibility and increasing the confidence of investors and financiers,” the statement said.

President Filipe Nyusi said in August 2018 that the Mphanda Nkuwa hydroelectric project is a “structural venture” and announced the end of the concession to the consortium led by Mozambican group Insitec and Brazilian construction company Camargo Corrêa, with 40% each, as well as state-owned power company Electricidade de Moçambique (EdM).

Nyusi also said that EdM and the Cahora Bassa Hydroelectric Plant “have the technical and financial capacity and skill to structure the project, which will avoid the obstruction and the delay that we have seen, on the one hand, and will contribute to the reduction of its cost because it does not involve intermediaries, on the other.”

The Mphanda Nkuwa Dam dam is a hydroelectric facility on the Zambezi River, some 60 kilometres downstream of the Cahora Bassa dam, and is expected to produce 1,500 megawatts of electricity once it comes into operation. (macauhub)

Final investment decision for Mozambique’s Area 1 block, scheduled for March/April

A final investment decision for the exploration of natural gas deposits in the Rovuma Basin Area 1 block, northern Mozambique, is expected to be made in March/April, said the chairman of state-owned oil and gas company Empresa Nacional de Hidrocarbonetos (ENH).

Omar Mithá, speaking on Sunday in New Delhi, India, recalled that an Indian company has already signed a contract for the purchase of natural gas to be extracted in that block and added that “the first shipments are expected to reach India in 2024.”

Mitch Ingram, executive vice president of the Anadarko Petroleum group, responsible for international focus, deep water and prospecting, said earlier this month that the contract signed with a subsidiary of the China National Offshore Oil Corporation (CNOOC) group “is another customer in a growing customer base in the Asia-Pacific,” region, “which demonstrates” the progress we are making towards a final investment decision in the first half of 2019.”

The ENH chairman, quoted by Reuters, also said that Mozambique’s geographic location is strategic in terms of natural gas imports and that the country does not have the same geopolitical challenges as the Middle East.

Mithá added that the partners of the Area 4 block, led and operated by Italy’s ENI and US group ExxonMobil, are expected to announce their final investment decision next July.

The project for the exploration of natural gas deposits in the Area 1 block will have two onshore plants with a combined capacity of 12.88 million tonnes per year to process the natural gas extracted from the Golfinho/Atum fields.

The Area 1 block is operated by Anadarko Mozambique Area 1, Ltd, a wholly-owned subsidiary of the Anadarko Petroleum group, with a 26.5% stake, ENH Rovuma Area One, a subsidiary of state-owned Empresa Nacional de Hidrocarbonetos (ENH), with 15%, Mitsui E&P Mozambique Area1 Ltd. (20%), ONGC Videsh Ltd. (10%), Beas Rovuma Energy Mozambique Limited (10%), BPRL Ventures Mozambique BV (10%), and PTTEP Mozambique Area 1 Limited (8.5%). (macauhub)

Australian company sells graphite mining assets in Mozambique

New Energy Minerals has signed a binding agreement with Auspicious Virtue Investment Holdings for the sale of its remaining 50% stake in Balama Properties Pty Limited in Mozambique, the Australian company said in a statement issued on Friday.

The statement added that after the formal conclusion of the deal, Auspicious Virtue Investment Holdings, an investment vehicle owned by Louis Ching, will hold all of the shares representing the share capital of Balama Properties.

New Energy Minerals announced on 7 November, 2018 it had reached an agreement with Ching under which this investor acquired the 50% stake through Auspicious Virtue Investment Holding Limited, a company incorporated in the British Virgin Islands.

Balama Properties was the subsidiary company through which New Energy Minerals controlled its interests in the graphite and vanadium project in northern Mozambique and no longer had any active involvement in that mining project.

The statement said the deal will involve payment of 7 million Australian dollars, which the Australian company previously said was the best value that could be achieved by the sale of that stake.

A study of the Caula mining concession owned by Balama Properties Pty Limited found that the two phases of the project would require an investment of 167.6 million Australian dollars to produce 120,000 tonnes of graphite and 204,000 tonnes of vanadium concentrate per year. (macauhub)

NEWS

The Mozambican government plans to reach the end of 2019 with a bank branch opened in all 154 districts of the country, the Council of Ministers spokesperson said in Maputo this week.

Ana Comoana, also deputy minister of Culture and Tourism, said that 107 districts already have a bank branch, which means coverage of 69.5%, and the government’s goal is to have the remaining 47 branches open by the end of the year.

“The ‘One district, one bank’ project was established to speed up the process of financial inclusion in rural areas, providing the districts with at least one bank branch,” said Comoana, according to Mozambican daily newspaper Noticias.

On Wednesday, the National Sustainable Development Fund (FNDS) signed a partnership agreement with the Millennium bim bank to open 12 branches in as many districts.

The O País newspaper reported that the Mozambican government has committed to spend some 2 billion meticais (US$31.7 million) on the “One district, one bank” project to guarantee the necessary infrastructure to open bank branches. (macauhub)

The World Bank has announced that it will grant up to US$50 million to Mozambique to help the country reduce carbon emissions and deforestation, according to a statement released this week in Washington.

Mozambique and the Democratic Republic of Congo were the first two of 19 countries to sign these contracts financed through the Forest Carbon Partnership Facility (FCPF) Carbon Fund, managed by the World Bank, according to the statement.

Mozambique signed the agreement on February 1, unlocking a grant that could reach US$50 million depending on the results, while the Democratic Republic of Congo, which joined the programme in late 2018, can receive up to US$55 million.

About 43% of Mozambique’s territory is covered by forests (34 million hectares) that have been severely deforested in recent years by logging trees for timber exports.

The agreement aims to reduce deforestation and forest degradation, while improving the living conditions of rural communities in nine districts of Zambezia province, with economic opportunities related to smarter land use and biodiversity and ecosystem conservation.

The remaining 17 countries involved in the FCPF Carbon Fund are expected to sign similar programmes, which run until 2024, in 2020. (macauhub)

Mozambique’s domestic public debt including Treasury Bills, Bonds and advances from the Bank of Mozambique reached 112.525 billion meticais (US$1.787 billion) at the end of January, the central bank said.

The latest statement from the Bank of Mozambique’s Monetary Policy Commission on 11 February said domestic public debt increased by 590 million meticais (US$9.3 million) over the period since the commission’s last meeting (13 December 2018).

The same document added that the stated amounts do not take into account other values of domestic public debt, such as mutual leasing and finance contracts, as well as past due liabilities.

Despite the increase in public debt, the Bank of Mozambique said the current conditions of the Mozambican economy are likely to lead to low and stable inflation, of around one digit, in the short and medium term.

This outlook is underpinned by expectations of reduced fuel prices on the international market and price stability in Mozambique’s main trading partners, within a framework of contained aggregate demand.

However, the Commission considered it was advisable to maintain a prudent monetary policy, with the result that the main benchmark market rates were kept unchanged, including the MIMO rate, which remained at 14.25%. (macauhub)

Mozambique is currently defined as an “authoritarian regime,” with a rating of less than four out of ten possible points, according to the Democracy Index of the Economist Intelligence Unit (EIU).

Noting that Mozambique’s neighbours Zimbabwe and eSwatini (Swaziland) have the same classification, the EIU reported the index for Mozambique had worsened, falling from 4.02 points in 2016 and 2017, considered a “hybrid regime”, to 3.85 points in 2018, and coming under the classification of “authoritarian regime.”

The latest report on Mozambique said that four indicators remain unchanged, but there has been a drop in the ranking of the country’s electoral process due to irregularities and violence against members of the opposition during and after the municipal elections held in October. 2018.

In economic terms, the EIU report “roughly” maintains forecasts from the previous one report, with a weak growth rate of 3.4% in 2019, before increasing to an average of 5.3% per year in the 2020/2023 period.

The document once again refers to the fact that the economy should start to benefit from preparations for natural gas operations in two blocks in the Rovuma basin. The parties have said they expect to start operating in 2023/2024.

But it also said that there is an over-supply in the world market for natural gas, and it is very likely that major onshore construction works, particularly processing plants, will start only after 2020.

The EIU said that bank credit has been contracting for some key sectors, such as agriculture, telecommunications and construction, due to a stricter monetary policy, which suggests that the performance of these sectors will be weak throughout 2019.

Private consumption, which is expected to grow at 3.7% this year, will tend to slide to negative levels by 2023, offset by public spending, which will see growth rates of between 4.0% in 2019 and 5.9 % by 2023.

Gross fixed capital formation, or investment, which fell by 12.5% in 2018, is expected to grow 8.2% this year, before almost literally exploding at rates of between 55.0% in 2020 and 30% in 2023. (macauhub)

Indian state group Bharat Petroleum Corporation Ltd (BPCL) plans to import natural gas extracted from the Rovuma basin in Mozambique within five years, a group official said.

The group intends to import 1 million tonnes of natural gas per year from the Area 1 block, where its subsidiary Bharat Petro Resources Ltd (BPRL) owns a 10.0% stake.

The head of the group said that a purchase and sale contract for the gas would be signed with the Mozambique LNG1 Company Pte. Ltd., the trading company of the Area 1 partners.

He added that the group has very bold plans in the natural gas segment, noting that the subsidiary Bharat Gas Resources Ltd. was set up in 2017/2018.

The group is also considering building a terminal to receive natural gas with a capacity of between 1 million and 3 million tonnes per year to meet growing demand in India.

A final investment decision for the exploration of natural gas deposits in the Rovuma Basin Area 1 block, northern Mozambique, is expected to be made in March/April, said the chairman of state-owned oil and gas company Empresa Nacional de Hidrocarbonetos (ENH).

Omar Mithá, speaking on Sunday in New Delhi, India, noted that an Indian company had already signed a contract for the purchase of natural gas to be extracted in the block and added that “the first shipments are expected to reach India in 2024.”

The Area 1 block is operated by Anadarko Mozambique Area 1, Ltd, a wholly-owned subsidiary of the Anadarko Petroleum group, with a 26.5% stake, ENH Rovuma Area One, a subsidiary of state-owned Empresa Nacional de Hidrocarbonetos (ENH), with 15%, Mitsui E&P Mozambique Area 1 Ltd. (20%), ONGC Videsh Ltd. (10%), Beas Rovuma Energy Mozambique Limited (10%), BPRL Ventures Mozambique B.V. (10%), and PTTEP Mozambique Area 1 Limited (8.5%).(macauhub)

The Mphanda Nkuwa Hydroelectric Project Implementation Office (Gmnk) will be the entity responsible for coordinating and carrying out the necessary actions for the development of the project, according to the Mozambican Ministry of Mineral Resources and Energy.

The official statement added that the recently created Gmnk will also be tasked with creation, organisation and upkeep of a database, safeguarding the intellectual property of the studies and all documentation focused on the proper execution of the project.

“It will also propose measures for the resolution of outstanding issues related to the current concession, as well as hiring specialised advisory services in the transactions area (…) giving the process credibility and increasing the confidence of investors and financiers,” the statement said.

President Filipe Nyusi said in August 2018 that the Mphanda Nkuwa hydroelectric project is a “structural venture” and announced the end of the concession to the consortium led by Mozambican group Insitec and Brazilian construction company Camargo Corrêa, with 40% each, as well as state-owned power company Electricidade de Moçambique (EdM).

Nyusi also said that EdM and the Cahora Bassa Hydroelectric Plant “have the technical and financial capacity and skill to structure the project, which will avoid the obstruction and the delay that we have seen, on the one hand, and will contribute to the reduction of its cost because it does not involve intermediaries, on the other.”

The Mphanda Nkuwa Dam dam is a hydroelectric facility on the Zambezi River, some 60 kilometres downstream of the Cahora Bassa dam, and is expected to produce 1,500 megawatts of electricity once it comes into operation. (macauhub)

A final investment decision for the exploration of natural gas deposits in the Rovuma Basin Area 1 block, northern Mozambique, is expected to be made in March/April, said the chairman of state-owned oil and gas company Empresa Nacional de Hidrocarbonetos (ENH).

Omar Mithá, speaking on Sunday in New Delhi, India, recalled that an Indian company has already signed a contract for the purchase of natural gas to be extracted in that block and added that “the first shipments are expected to reach India in 2024.”

Mitch Ingram, executive vice president of the Anadarko Petroleum group, responsible for international focus, deep water and prospecting, said earlier this month that the contract signed with a subsidiary of the China National Offshore Oil Corporation (CNOOC) group “is another customer in a growing customer base in the Asia-Pacific,” region, “which demonstrates” the progress we are making towards a final investment decision in the first half of 2019.”

The ENH chairman, quoted by Reuters, also said that Mozambique’s geographic location is strategic in terms of natural gas imports and that the country does not have the same geopolitical challenges as the Middle East.

Mithá added that the partners of the Area 4 block, led and operated by Italy’s ENI and US group ExxonMobil, are expected to announce their final investment decision next July.

The project for the exploration of natural gas deposits in the Area 1 block will have two onshore plants with a combined capacity of 12.88 million tonnes per year to process the natural gas extracted from the Golfinho/Atum fields.

The Area 1 block is operated by Anadarko Mozambique Area 1, Ltd, a wholly-owned subsidiary of the Anadarko Petroleum group, with a 26.5% stake, ENH Rovuma Area One, a subsidiary of state-owned Empresa Nacional de Hidrocarbonetos (ENH), with 15%, Mitsui E&P Mozambique Area1 Ltd. (20%), ONGC Videsh Ltd. (10%), Beas Rovuma Energy Mozambique Limited (10%), BPRL Ventures Mozambique BV (10%), and PTTEP Mozambique Area 1 Limited (8.5%). (macauhub)

New Energy Minerals has signed a binding agreement with Auspicious Virtue Investment Holdings for the sale of its remaining 50% stake in Balama Properties Pty Limited in Mozambique, the Australian company said in a statement issued on Friday.

The statement added that after the formal conclusion of the deal, Auspicious Virtue Investment Holdings, an investment vehicle owned by Louis Ching, will hold all of the shares representing the share capital of Balama Properties.

New Energy Minerals announced on 7 November, 2018 it had reached an agreement with Ching under which this investor acquired the 50% stake through Auspicious Virtue Investment Holding Limited, a company incorporated in the British Virgin Islands.

Balama Properties was the subsidiary company through which New Energy Minerals controlled its interests in the graphite and vanadium project in northern Mozambique and no longer had any active involvement in that mining project.

The statement said the deal will involve payment of 7 million Australian dollars, which the Australian company previously said was the best value that could be achieved by the sale of that stake.

A study of the Caula mining concession owned by Balama Properties Pty Limited found that the two phases of the project would require an investment of 167.6 million Australian dollars to produce 120,000 tonnes of graphite and 204,000 tonnes of vanadium concentrate per year. (macauhub)

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