John Kelly Authentic Jersey NEWS – Mozambique Consulate

NEWS

Final Proposal on Local Content Law in Mozambique sees no private sector consensus

The final proposal of Mozambique’s Local Content Law, which aims to regulate the participation of Mozambican companies in large extractive industry projects, has been approved after five years of discussion between the government and the private sector, according to the daily newspaper O País.

The document, which has no set date for consideration and final approval in parliament, contains 16 pages and 28 articles and has not achieved a consensus within the private sector, according to the newspaper.

Florival Mucave, chairman of the Local Content Commission and business liaison of the Confederation of Economic Associations, Mozambique’s employer association, said “we are disappointed by the clauses in the proposal” adding that “the sale of a 15% stake through the stock exchange is risky.”

Article 21 specifically states that “large projects must set aside 15% of their capital for sale by Mozambican public or private natural and legal persons through the stock exchange.”

It also states that “each sector of activity of which the enterprise is a part may define a different percentage of national participation, provided that it does not exceed the percentage referred to in the previous paragraph (15%).”

Florival Mucave stressed that the future Local Content Law does not apply to the Rovuma Basin Block 1 liquefied natural gas project, whose Final Investment Decision was made last June.

Vasco Nhabinde, national director of the Department of Economic Studies at the Ministry of Economy and Finance, when faced with the disappointment of employers, said the proposal was the best one possible. (Macauhub)

New photovoltaic plant under consideration in Mozambique

The environmental impact study of a 50-megawatt photovoltaic power plant to be built in Lichinga, the capital of Niassa province, northern Mozambique, will begin in September under a recently signed memorandum.

The memorandum was signed between the provincial government, the Anglican church in Niassa and Gigawatt Global, and the planned investment is estimated at US$200 million, according to Mozambican newspaper Notícias.

The electricity produced will be channelled to the national grid managed by state-owned Electricidade de Moçambique (EDM) to cover the shortfall that some districts in the province currently face, namely Lago, Mecula, Mecanhelas, Mavago and Mandimba.

Gigawatt Global is focused on the development and management of renewable energy projects. It is present in countries including Burundi, Ethiopia and South Sudan and now potentially Mozambique. (Macauhub)

China Road and Bridge Corporation makes emergency repairs on Mozambique’s main road

The China Road and Bridge Corporation (CRBC) has been hired to carry out emergency repairs on a 35-kilometre stretch of National Highway No. 1 (EN1) between Pambara and Mangungumete in Inhambane Province, southern Mozambique, at an estimated cost at US$5.9 million, the Mozambican press reported.

The work will be funded by South African petrochemical group Sasol, as EN1, which links the north to the south of the country, is a vital road for the group’s natural gas processing plant to operate.

Ovid Rodolfo, Sasol’s Managing Director in Mozambique, said “ensuring the repair of this section of EN1 is a safety imperative for our employees, stakeholders and the communities where we operate.”

The works awarded to CRBC include repairing the road surface, which is in very poor condition, and this section is used for the transport of condensate produced by Sasol and to transport people and goods.

Sasol signed a memorandum of understanding with the National Roads Administration (ANE) in June 2018, according to which EN1 emergency repair work would be carried out under a contract between Sasol, as financier, the China Road. and Bridge Corporation (CRBC) as a contractor and ANE, as the entity responsible for the contract. (Macauhub)

Mozambique joins African Export and Import Bank

Mozambique will join the African Export and Import Bank (Afreximbank), according to a statement issued at the end of a Council of Ministers meeting held on Tuesday in Maputo.

The statement said that the Council of Ministers authorised the Minister of Finance to sign the necessary documentation for the accession process.

The Afreximbank was created by the African Development Bank in 1993 and has a registered capital of over US$11 billion.

The chairman of the bank told African Union heads of state and government last July that the bank will set up a US$1 billion fund to support the implementation of the free trade agreement in Africa.

The US$1 billion fund is intended to support countries in adjusting to the sudden and significant loss of customs revenue, which is expected to be reduced and, in some cases, eliminated.

“This fund will help countries accelerate the ratification of the African Continental Free Trade Agreement [AfCFTA],” said Benedict Oramah, adding that by starting the operational phase of the agreement “this move is now unstoppable.” (Macauhub)

Mozambican government compensates denouncers of illegal gem trade

The Mozambican government will compensate people who denounce gemstone smuggling, with a view to ending that illegal trade, the Minister for Mineral Resources and Energy recently stated.

Speaking on the sidelines of a meeting of his ministry’s Coordinating Council, Max Tonela said that denouncers could receive monetary compensation or keep some of the product seized by authorities.

Both the value and the mechanisms for compensating denouncers are being analysed, he said, as reported by the Maputo-based daily Notícias.

Tonela recalled that inspection services were now more autonomous and that depots had been set up for the legal sale of precious gems, which “will stimulate artisanal miners to join the formal mineral trading circuit.”

He explained that the losses suffered by the Treasury due to illegal gem trading are high, but did not provide overall figures.

For example, the provincial government of Nampula in northern Mozambique estimates that there are nearly 6,000 illegal artisanal mining operations in the area where gemstones are found.

Concern over the matter was manifested by the provincial governor, Victor Borges, during the opening of the 4th Stones and Gems Fair in the city of Nampula, capital of the province of the same name. (Macauhub)

Mozambican port of Maputo awards maintenance dredging to Jan de Nul Dredging

The Maputo Port Development Company (MPDC) has awarded to Belgium’s Jan de Nul Dredging the first maintenance dredging of the access channel to the port of Maputo, the company indicated in a statement released on Monday in Maputo.

This is to be first dredging of the access channel since it was made deeper, from -11 metres to -14.3 metres. It will cover the channels of Matola, Catembe, Polana, Xefina and Norte and involve the removal of 1.4 million cubic metres of sediment.

The MPDC also indicated that the maintenance dredging will begin this October and last for four months, guaranteeing that the activity would not disrupt normal port operations in any way.

The MPDC is a partnership between the state-owned CFM ports and railways enterprise and the company Portus Indico, comprising the Grindrod (South Africa) and DP World (Dubai) groups and the local company Moçambique Gestores. (Macauhub)

Mozambican government to resolve late payments to national companies by end of year

The payment of overdue debts to suppliers of goods and services will be completed this year, the spokesperson of Mozambique’s Ministry of the Economy and Finance, Rogério Nkomo, told the Mozambican daily O País.

The country’s government owes 29.7 billion meticais (US$486 million) to companies that supplied goods and services to the state between 2007 and 2017.

The debt assumed by the government is nevertheless only 19.5 billion meticais (US$319.3 million), “allegedly because the remainder violated several administrative procedures.”

Nkomo assured the newspaper that most of the validated debt has already been resolved, and that the process should be finished by the end of the year.

The rest of the debt, 10.2 billion meticais, is now being analysed, he added.

The newspaper reported that 88.0 percent of the total debt (25.953 billion meticais) was contracted by central government bodies, while the remaining 12 percent (3.812 billion meticais) was the responsibility of local administrations. (Macauhub)

Total group reaffirms commitment to natural gas project in Mozambique

France’s Total group has guaranteed its commitment to the natural gas project in the Rovuma Basin, despite the level of insecurity in northern Mozambique’s Cabo Delgado province, indicates a statement released on Friday.

Total is set to become the operator of the Area 1 block with a stake of 26.5 percent, following the acquisition of the Anadarko Petroleum Corporation group by the Occidental Petroleum Corporation group, a deal worth US$55 billion.

Last 5 May, the Total group announced that it had reached a binding agreement with the Occidental Petroleum Corporation group to buy for US$8.8 billion the assets in Africa of the Anadarko Petroleum Corporation group, situated in four countries: South Africa, Algeria, Ghana and Mozambique.

“The transaction depends on the Occidental group buying the Anadarko group and approval by the relevant bodies, and should be completed in 2020,” indicated the statement issued at that time.

While the assets in three of the four countries do not face problems, Mozambique’s case is different, as the respective province has been targeted by attacks led by radical Muslims since October 2017.

Total group CEO Patrick Pouyanné reiterated commitment to the natural gas project in the Area 1 block on Friday, stating that it was an asset “that perfectly fits our strategy.” (Macauhub)

NEWS

The final proposal of Mozambique’s Local Content Law, which aims to regulate the participation of Mozambican companies in large extractive industry projects, has been approved after five years of discussion between the government and the private sector, according to the daily newspaper O País.

The document, which has no set date for consideration and final approval in parliament, contains 16 pages and 28 articles and has not achieved a consensus within the private sector, according to the newspaper.

Florival Mucave, chairman of the Local Content Commission and business liaison of the Confederation of Economic Associations, Mozambique’s employer association, said “we are disappointed by the clauses in the proposal” adding that “the sale of a 15% stake through the stock exchange is risky.”

Article 21 specifically states that “large projects must set aside 15% of their capital for sale by Mozambican public or private natural and legal persons through the stock exchange.”

It also states that “each sector of activity of which the enterprise is a part may define a different percentage of national participation, provided that it does not exceed the percentage referred to in the previous paragraph (15%).”

Florival Mucave stressed that the future Local Content Law does not apply to the Rovuma Basin Block 1 liquefied natural gas project, whose Final Investment Decision was made last June.

Vasco Nhabinde, national director of the Department of Economic Studies at the Ministry of Economy and Finance, when faced with the disappointment of employers, said the proposal was the best one possible. (Macauhub)

The environmental impact study of a 50-megawatt photovoltaic power plant to be built in Lichinga, the capital of Niassa province, northern Mozambique, will begin in September under a recently signed memorandum.

The memorandum was signed between the provincial government, the Anglican church in Niassa and Gigawatt Global, and the planned investment is estimated at US$200 million, according to Mozambican newspaper Notícias.

The electricity produced will be channelled to the national grid managed by state-owned Electricidade de Moçambique (EDM) to cover the shortfall that some districts in the province currently face, namely Lago, Mecula, Mecanhelas, Mavago and Mandimba.

Gigawatt Global is focused on the development and management of renewable energy projects. It is present in countries including Burundi, Ethiopia and South Sudan and now potentially Mozambique. (Macauhub)

The China Road and Bridge Corporation (CRBC) has been hired to carry out emergency repairs on a 35-kilometre stretch of National Highway No. 1 (EN1) between Pambara and Mangungumete in Inhambane Province, southern Mozambique, at an estimated cost at US$5.9 million, the Mozambican press reported.

The work will be funded by South African petrochemical group Sasol, as EN1, which links the north to the south of the country, is a vital road for the group’s natural gas processing plant to operate.

Ovid Rodolfo, Sasol’s Managing Director in Mozambique, said “ensuring the repair of this section of EN1 is a safety imperative for our employees, stakeholders and the communities where we operate.”

The works awarded to CRBC include repairing the road surface, which is in very poor condition, and this section is used for the transport of condensate produced by Sasol and to transport people and goods.

Sasol signed a memorandum of understanding with the National Roads Administration (ANE) in June 2018, according to which EN1 emergency repair work would be carried out under a contract between Sasol, as financier, the China Road. and Bridge Corporation (CRBC) as a contractor and ANE, as the entity responsible for the contract. (Macauhub)

Mozambique will join the African Export and Import Bank (Afreximbank), according to a statement issued at the end of a Council of Ministers meeting held on Tuesday in Maputo.

The statement said that the Council of Ministers authorised the Minister of Finance to sign the necessary documentation for the accession process.

The Afreximbank was created by the African Development Bank in 1993 and has a registered capital of over US$11 billion.

The chairman of the bank told African Union heads of state and government last July that the bank will set up a US$1 billion fund to support the implementation of the free trade agreement in Africa.

The US$1 billion fund is intended to support countries in adjusting to the sudden and significant loss of customs revenue, which is expected to be reduced and, in some cases, eliminated.

“This fund will help countries accelerate the ratification of the African Continental Free Trade Agreement [AfCFTA],” said Benedict Oramah, adding that by starting the operational phase of the agreement “this move is now unstoppable.” (Macauhub)

The Mozambican government will compensate people who denounce gemstone smuggling, with a view to ending that illegal trade, the Minister for Mineral Resources and Energy recently stated.

Speaking on the sidelines of a meeting of his ministry’s Coordinating Council, Max Tonela said that denouncers could receive monetary compensation or keep some of the product seized by authorities.

Both the value and the mechanisms for compensating denouncers are being analysed, he said, as reported by the Maputo-based daily Notícias.

Tonela recalled that inspection services were now more autonomous and that depots had been set up for the legal sale of precious gems, which “will stimulate artisanal miners to join the formal mineral trading circuit.”

He explained that the losses suffered by the Treasury due to illegal gem trading are high, but did not provide overall figures.

For example, the provincial government of Nampula in northern Mozambique estimates that there are nearly 6,000 illegal artisanal mining operations in the area where gemstones are found.

Concern over the matter was manifested by the provincial governor, Victor Borges, during the opening of the 4th Stones and Gems Fair in the city of Nampula, capital of the province of the same name. (Macauhub)

The Maputo Port Development Company (MPDC) has awarded to Belgium’s Jan de Nul Dredging the first maintenance dredging of the access channel to the port of Maputo, the company indicated in a statement released on Monday in Maputo.

This is to be first dredging of the access channel since it was made deeper, from -11 metres to -14.3 metres. It will cover the channels of Matola, Catembe, Polana, Xefina and Norte and involve the removal of 1.4 million cubic metres of sediment.

The MPDC also indicated that the maintenance dredging will begin this October and last for four months, guaranteeing that the activity would not disrupt normal port operations in any way.

The MPDC is a partnership between the state-owned CFM ports and railways enterprise and the company Portus Indico, comprising the Grindrod (South Africa) and DP World (Dubai) groups and the local company Moçambique Gestores. (Macauhub)

The payment of overdue debts to suppliers of goods and services will be completed this year, the spokesperson of Mozambique’s Ministry of the Economy and Finance, Rogério Nkomo, told the Mozambican daily O País.

The country’s government owes 29.7 billion meticais (US$486 million) to companies that supplied goods and services to the state between 2007 and 2017.

The debt assumed by the government is nevertheless only 19.5 billion meticais (US$319.3 million), “allegedly because the remainder violated several administrative procedures.”

Nkomo assured the newspaper that most of the validated debt has already been resolved, and that the process should be finished by the end of the year.

The rest of the debt, 10.2 billion meticais, is now being analysed, he added.

The newspaper reported that 88.0 percent of the total debt (25.953 billion meticais) was contracted by central government bodies, while the remaining 12 percent (3.812 billion meticais) was the responsibility of local administrations. (Macauhub)

France’s Total group has guaranteed its commitment to the natural gas project in the Rovuma Basin, despite the level of insecurity in northern Mozambique’s Cabo Delgado province, indicates a statement released on Friday.

Total is set to become the operator of the Area 1 block with a stake of 26.5 percent, following the acquisition of the Anadarko Petroleum Corporation group by the Occidental Petroleum Corporation group, a deal worth US$55 billion.

Last 5 May, the Total group announced that it had reached a binding agreement with the Occidental Petroleum Corporation group to buy for US$8.8 billion the assets in Africa of the Anadarko Petroleum Corporation group, situated in four countries: South Africa, Algeria, Ghana and Mozambique.

“The transaction depends on the Occidental group buying the Anadarko group and approval by the relevant bodies, and should be completed in 2020,” indicated the statement issued at that time.

While the assets in three of the four countries do not face problems, Mozambique’s case is different, as the respective province has been targeted by attacks led by radical Muslims since October 2017.

Total group CEO Patrick Pouyanné reiterated commitment to the natural gas project in the Area 1 block on Friday, stating that it was an asset “that perfectly fits our strategy.” (Macauhub)

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