John Kelly Authentic Jersey NEWS – Mozambique Consulate

NEWS

China donates 100 public transport buses to Mozambique

The Chinese government has donated 100 new buses for urban passenger transport in Mozambique.

The 40-seat Zhong Tong brand buses were delivered at a public ceremony attended by President Filipe Nyusi and China’s ambassador to Mozambique’s Su Jian, the Xinhua news agency reported.

The Chinese diplomat said during the ceremony that each bus comes equipped with accessories and parts for repair, if necessary.

The delivery of the 100 buses is part of “Plano 1000” in which the government plans to place 1,000 public transport vehicles in Mozambique over the next five years.

The President of the Republic said when the plan was launched that the Government had already achieved more than 80% of its goal to place buses in Mozambique.

Of the 100 buses 65 will be distributed throughout the municipalities of Maputo, Matola, Boane and the district of Marracuene and 35 will be placed in the provinces. (Macauhub)

Anadarko announces investment plan for natural gas exploration in Mozambique

US oil company Anadarko is due on Tuesday to formally announce its investment plan for exploration of natural gas in Mozambique.

 

The development plan for Area 1 of the Rovuma Basin in Cabo Delgado province is estimated to cost US$25 billion to prospect for natural gas that will latter be channeled to a plant that will transform it into liquid on the Afungi peninsula, in the district of Palma.

 

Alongside the liquefaction plant a dock will be built for special cargo ships to be filled with liquefied natural gas (LNG).

 

According to daily newspaper Notícias, a smaller portion of LNG will remain in Mozambique, which will be channeled to electricity production, and transformed into liquid fuels and fertilisers.

 

The Area 1 plan initially projects two gas liquefaction lines with a total production capacity of 12.88 million tonnes per year (mtpa), and the project may increase to up to eight production lines.

 

Area 1 has more than 75 trillion cubic feet (tcf) of off-shore gas deposits.

 

Anadarko believes that the Area 1 deposits are equivalent to double the gas and oil, available in the British North Sea area and classifies the Rovuma basin as the next large hydrocarbon exploration zone in the world.

 

In addition to Anadarko, which leads the consortium with 26.5%, the group exploring Area 1 consists of Japan’s Mitsui (20%) and Mozambican state oil company ENH (15%), with smaller stakes held by India’s ONGC (10% ) and its subsidiary Beas (10%), Bharat Petro Resources (10%) and Thai company PTTEP (8.5%).

 

Anadarko is expected to hand over the leadership of the consortium to France’s Total by the end of the year, after being bought by another US oil company, Occidental, which in turn entered into an agreement to sell assets in Africa.

 

Natural gas projects in Mozambique are expected to go into production in about five years and drive the Mozambican economy to grow by more than 10% a year, according to the International Monetary Fund. (Macauhub)

Mozambique to build new Locumue dam in Niassa province

The Mozambican Minister of Public Works, Housing and Water Resources, João Machatine, laid the foundation stone for the construction of the new Locumue dam in Niassa province in northern Mozambique.

 

The new venture, which will double the capacity of the province’s water supply system, will cost about US$8 million.

 

The Locumue dam was built in the 1960s for irrigation purposes, but 10 years later it became the main source of water for the city of Lichinga, the capital of Niassa province.

 

Machatine said the idea is to increase the volume of water in the reservoir by more than twice the current 1.76 million cubic metres to 3.4 million cubic metres.”

 

Construction of the new dam is expected to be completed in March 2021.

 

The project is being carried out as part of the Pravida programme, an initiative to accelerate the rehabilitation and/or construction of new water supply, sanitation and storage infrastructure, which was recently launched by the Government.

 

Under the programme, water and sanitation systems are also being renewed in the cities, towns and villages of the province, benefiting 187,000 people, Machatine said. (Macauhub)

Bank of Mozambique removes Gapi directors

The Gapi Investment Company has no executive directors, after the Bank of Mozambique (BdM), on 4 June cancelled the special registration of the executive directors of the institution, António Souto and Anabela Mucavele, Mozambican news agency AIM reported.

 

 

This intervention on Gapi follows similar positions in 2016 on Mozambican credit institutions, when the BdM revoked the operating license of Nosso Banco and also intervened in Moza Banco, which at the time was considered to be the fourth the most important credit institution in the Mozambican financial system.

 

The BdM justifies the decision to dismiss the executive directors of Gapi based on, “not meeting the requirements for suitability,” as since 2007 the Investment Company has had “systematic non-observance of the rules governing the operation of credit institutions,” particularly with regard to reporting financial and prudential information and failure to comply with the recommendations issued by the central bank following an inspection carried out on 12 June 2012.

 

The BdM said Gapi is in technical bankruptcy, has negative equity, the solvency ratio is below the established minimum of 8%, it has a deficit of regulatory provisions and excessive concentration of risk.

 

Gapi’s shareholders met to discuss the restrictions and accusations made by the Bank of Mozambique, including the removal of directors António Souto and Anabela Mucavele.

 

The Community Development Foundation (FDC), Graça Machel (10.55%), the Mozambican Red Cross (8.91%), the Institute for State Participation Management (IGEPE) (10.25%), Gapigest (25.64%), the CTA (19%) and GTT (Managers, Technicians and Workers) (25.64%) are the shareholders of Gapi. (Macauhub)

Trade between China and Portuguese-speaking countries reaches US$46.254 billion from January to April

Trade between China and the Portuguese-speaking countries increased 11.99% in the period from January to April 2019 to US$46.254 billion, according to official Chinese figures released by Forum Macau.

China exported goods worth US$12.529 billion (+2.68% year-on-year) in the first four months of the year to the eight Portuguese-speaking countries and imported goods valued at US$33.724 billion (+15.89%), assuming a trade deficit of US$21.195 billion.

Trade with Brazil, which accounted for 74% of the total, totalled US$34.33 billion (+16.34%), with Chinese companies exporting goods worth US$9.934 billion((+1.04%) and importing products to the value of US$24.445 billion (+23.97%).

Angola is second in terms of value, with two-way trade with China falling by 2.32% to US$8.897 billion, with Chinese exports amounting to US$575 million (-13.83%) and imports which reached US$8.321 billion (-1.41%).

Trade between China and Portugal totalled US$2.117 billion (+13.70%), with Chinese companies exporting goods totaling US$1.384 billion (+22.64%) and US$733 million (-0.07%).

Trade with Mozambique increased by 10.47% year-on-year to US$783 million, with China exporting goods worth US$564 million (+12.51%) and having purchased products worth US$ 218 million (+5.53%).

China’s trade with the other Portuguese-speaking countries – Cabo Verde, Guinea Bissau, São Tomé and Príncipe and Timor-Leste – amounted to US$75.91 million in the first four months of the year. (Macauhub)

Mozambique expects a significant increase in cashew production within five years

Mozambique plans to return to the cashew nut production levels it had in the 1970s over the next five years, said the national director of the National Cashew Institute (INCAJU).

Ilídio Bande, quoted by Mozambican newspaper O País, also said that funds provided by the United States Agency for International Development (USAID), as well as a 60 million meticais credit line (about US$1 million) for producers, will encourage commercial production of cashew nuts.

The commercial production of cashew nuts increased from around 80,000 tonnes in 2014 and 2015 to around 142,000 tonnes in 2018/2019, and the national director of Incaju said that the distribution to producers of new seedlings in the last decade will have a positive effect on production.

Bande pointed out that, in addition to producing new seedlings to replace endangered or diseased trees, “we are annually spraying about 5.5 million cashew trees against pests and diseases.”

The country has 17 plants to process cashew nuts with a capacity of 105,000 tonnes, and in 2018 at least 60,000 tonnes were processed in these units.

Mozambique was one of the world’s largest producers of cashew nuts until the 1970s, with an annual production of around 200,000 tonnes, particularly in the northern part of the country, most notably Nampula province.

After the country’s independence in 1975, there was a deep crisis in the sector, with nationalisations leading to the closure of many processing plants and an increasing scarcity of raw materials due to the aging of the cashew groves.

The pests and diseases that struck the trees further aggravated the problem, so that Mozambique disappeared from the international cashew map for years. (Macauhub)

Chinese investors spend US$700 million on building a cement factory in Mozambique

Chinese investors will spend US$700 million to build a cement plant with a nominal capacity of 500,000 tonnes in Mozambique, with work expected to start in 2021, daily newspaper Correio da Manhã reported.

The newspaper said that the Cimentos de Sofala, Lda. plant is due to be built in Muxúnguè, Chibabava district, in the south of the Mozambican central province of Sofala, and the works will begin in the third quarter of 2019.

Zheng Peng, the company’s representative, told the newspaper that the investors plan to supply the local market with Portland cement, in addition to exporting the product to neighbouring countries Malawi and Zambia.

The construction of the factory is expected to require 600 workers, mostly Mozambicans, and when in operation the unit should have a workforce of 200 people. (Macauhub)

Schengen Agreement limits mobility in the Community of Portuguese Speaking Countries

The future mobility scheme in the Community of Portuguese-Speaking Countries (CPLP) will be limited by short-stay visas because of the European Schengen agreement, which only exempts Brazil and Timor-Leste, said the Portuguese Minister of Foreign Affairs.

Minister Augusto Santos Silva, speaking at the Foreign Affairs and Portuguese Communities Committee of the Portuguese Parliament, said that Portugal supports “maximum freedom of movement,” in the CPLP, but is limited by agreements such as the Schengen area of free movement within the European Union.

The minister stressed, however, that in the case of long-term stays “for purposes of study, work or business (…) the current provisions are of a national nature and Portugal is available to follow the regime of maximum freedom of circulation within the CPLP.”

Santos Silva discussed with MPs the preparations for the next meeting of CPLP foreign ministers, to be held on 19 July in Mindelo, Cabo Verde, in which the agreement on mobility will be discussed, according to Portuguese news agency Lusa.

The draft legal agreement for this regime, presented in April by the CPLP’s Cape Verdean presidency, “has been worked on at a technical level,” and “the best outlook is that the Foreign Ministers can speak and validate the work that has been done.”

Santos Silva also hoped that the agreement would be approved at the next meeting of the organisation, which will be held in Luanda in 2020, “thus closing the Cabo Verde presidency and the Portuguese executive secretariat in the best possible way.” (Macauhub)

NEWS

The Chinese government has donated 100 new buses for urban passenger transport in Mozambique.

The 40-seat Zhong Tong brand buses were delivered at a public ceremony attended by President Filipe Nyusi and China’s ambassador to Mozambique’s Su Jian, the Xinhua news agency reported.

The Chinese diplomat said during the ceremony that each bus comes equipped with accessories and parts for repair, if necessary.

The delivery of the 100 buses is part of “Plano 1000” in which the government plans to place 1,000 public transport vehicles in Mozambique over the next five years.

The President of the Republic said when the plan was launched that the Government had already achieved more than 80% of its goal to place buses in Mozambique.

Of the 100 buses 65 will be distributed throughout the municipalities of Maputo, Matola, Boane and the district of Marracuene and 35 will be placed in the provinces. (Macauhub)

US oil company Anadarko is due on Tuesday to formally announce its investment plan for exploration of natural gas in Mozambique.

 

The development plan for Area 1 of the Rovuma Basin in Cabo Delgado province is estimated to cost US$25 billion to prospect for natural gas that will latter be channeled to a plant that will transform it into liquid on the Afungi peninsula, in the district of Palma.

 

Alongside the liquefaction plant a dock will be built for special cargo ships to be filled with liquefied natural gas (LNG).

 

According to daily newspaper Notícias, a smaller portion of LNG will remain in Mozambique, which will be channeled to electricity production, and transformed into liquid fuels and fertilisers.

 

The Area 1 plan initially projects two gas liquefaction lines with a total production capacity of 12.88 million tonnes per year (mtpa), and the project may increase to up to eight production lines.

 

Area 1 has more than 75 trillion cubic feet (tcf) of off-shore gas deposits.

 

Anadarko believes that the Area 1 deposits are equivalent to double the gas and oil, available in the British North Sea area and classifies the Rovuma basin as the next large hydrocarbon exploration zone in the world.

 

In addition to Anadarko, which leads the consortium with 26.5%, the group exploring Area 1 consists of Japan’s Mitsui (20%) and Mozambican state oil company ENH (15%), with smaller stakes held by India’s ONGC (10% ) and its subsidiary Beas (10%), Bharat Petro Resources (10%) and Thai company PTTEP (8.5%).

 

Anadarko is expected to hand over the leadership of the consortium to France’s Total by the end of the year, after being bought by another US oil company, Occidental, which in turn entered into an agreement to sell assets in Africa.

 

Natural gas projects in Mozambique are expected to go into production in about five years and drive the Mozambican economy to grow by more than 10% a year, according to the International Monetary Fund. (Macauhub)

The Mozambican Minister of Public Works, Housing and Water Resources, João Machatine, laid the foundation stone for the construction of the new Locumue dam in Niassa province in northern Mozambique.

 

The new venture, which will double the capacity of the province’s water supply system, will cost about US$8 million.

 

The Locumue dam was built in the 1960s for irrigation purposes, but 10 years later it became the main source of water for the city of Lichinga, the capital of Niassa province.

 

Machatine said the idea is to increase the volume of water in the reservoir by more than twice the current 1.76 million cubic metres to 3.4 million cubic metres.”

 

Construction of the new dam is expected to be completed in March 2021.

 

The project is being carried out as part of the Pravida programme, an initiative to accelerate the rehabilitation and/or construction of new water supply, sanitation and storage infrastructure, which was recently launched by the Government.

 

Under the programme, water and sanitation systems are also being renewed in the cities, towns and villages of the province, benefiting 187,000 people, Machatine said. (Macauhub)

The Gapi Investment Company has no executive directors, after the Bank of Mozambique (BdM), on 4 June cancelled the special registration of the executive directors of the institution, António Souto and Anabela Mucavele, Mozambican news agency AIM reported.

 

 

This intervention on Gapi follows similar positions in 2016 on Mozambican credit institutions, when the BdM revoked the operating license of Nosso Banco and also intervened in Moza Banco, which at the time was considered to be the fourth the most important credit institution in the Mozambican financial system.

 

The BdM justifies the decision to dismiss the executive directors of Gapi based on, “not meeting the requirements for suitability,” as since 2007 the Investment Company has had “systematic non-observance of the rules governing the operation of credit institutions,” particularly with regard to reporting financial and prudential information and failure to comply with the recommendations issued by the central bank following an inspection carried out on 12 June 2012.

 

The BdM said Gapi is in technical bankruptcy, has negative equity, the solvency ratio is below the established minimum of 8%, it has a deficit of regulatory provisions and excessive concentration of risk.

 

Gapi’s shareholders met to discuss the restrictions and accusations made by the Bank of Mozambique, including the removal of directors António Souto and Anabela Mucavele.

 

The Community Development Foundation (FDC), Graça Machel (10.55%), the Mozambican Red Cross (8.91%), the Institute for State Participation Management (IGEPE) (10.25%), Gapigest (25.64%), the CTA (19%) and GTT (Managers, Technicians and Workers) (25.64%) are the shareholders of Gapi. (Macauhub)

Trade between China and the Portuguese-speaking countries increased 11.99% in the period from January to April 2019 to US$46.254 billion, according to official Chinese figures released by Forum Macau.

China exported goods worth US$12.529 billion (+2.68% year-on-year) in the first four months of the year to the eight Portuguese-speaking countries and imported goods valued at US$33.724 billion (+15.89%), assuming a trade deficit of US$21.195 billion.

Trade with Brazil, which accounted for 74% of the total, totalled US$34.33 billion (+16.34%), with Chinese companies exporting goods worth US$9.934 billion((+1.04%) and importing products to the value of US$24.445 billion (+23.97%).

Angola is second in terms of value, with two-way trade with China falling by 2.32% to US$8.897 billion, with Chinese exports amounting to US$575 million (-13.83%) and imports which reached US$8.321 billion (-1.41%).

Trade between China and Portugal totalled US$2.117 billion (+13.70%), with Chinese companies exporting goods totaling US$1.384 billion (+22.64%) and US$733 million (-0.07%).

Trade with Mozambique increased by 10.47% year-on-year to US$783 million, with China exporting goods worth US$564 million (+12.51%) and having purchased products worth US$ 218 million (+5.53%).

China’s trade with the other Portuguese-speaking countries – Cabo Verde, Guinea Bissau, São Tomé and Príncipe and Timor-Leste – amounted to US$75.91 million in the first four months of the year. (Macauhub)

Mozambique plans to return to the cashew nut production levels it had in the 1970s over the next five years, said the national director of the National Cashew Institute (INCAJU).

Ilídio Bande, quoted by Mozambican newspaper O País, also said that funds provided by the United States Agency for International Development (USAID), as well as a 60 million meticais credit line (about US$1 million) for producers, will encourage commercial production of cashew nuts.

The commercial production of cashew nuts increased from around 80,000 tonnes in 2014 and 2015 to around 142,000 tonnes in 2018/2019, and the national director of Incaju said that the distribution to producers of new seedlings in the last decade will have a positive effect on production.

Bande pointed out that, in addition to producing new seedlings to replace endangered or diseased trees, “we are annually spraying about 5.5 million cashew trees against pests and diseases.”

The country has 17 plants to process cashew nuts with a capacity of 105,000 tonnes, and in 2018 at least 60,000 tonnes were processed in these units.

Mozambique was one of the world’s largest producers of cashew nuts until the 1970s, with an annual production of around 200,000 tonnes, particularly in the northern part of the country, most notably Nampula province.

After the country’s independence in 1975, there was a deep crisis in the sector, with nationalisations leading to the closure of many processing plants and an increasing scarcity of raw materials due to the aging of the cashew groves.

The pests and diseases that struck the trees further aggravated the problem, so that Mozambique disappeared from the international cashew map for years. (Macauhub)

Chinese investors will spend US$700 million to build a cement plant with a nominal capacity of 500,000 tonnes in Mozambique, with work expected to start in 2021, daily newspaper Correio da Manhã reported.

The newspaper said that the Cimentos de Sofala, Lda. plant is due to be built in Muxúnguè, Chibabava district, in the south of the Mozambican central province of Sofala, and the works will begin in the third quarter of 2019.

Zheng Peng, the company’s representative, told the newspaper that the investors plan to supply the local market with Portland cement, in addition to exporting the product to neighbouring countries Malawi and Zambia.

The construction of the factory is expected to require 600 workers, mostly Mozambicans, and when in operation the unit should have a workforce of 200 people. (Macauhub)

The future mobility scheme in the Community of Portuguese-Speaking Countries (CPLP) will be limited by short-stay visas because of the European Schengen agreement, which only exempts Brazil and Timor-Leste, said the Portuguese Minister of Foreign Affairs.

Minister Augusto Santos Silva, speaking at the Foreign Affairs and Portuguese Communities Committee of the Portuguese Parliament, said that Portugal supports “maximum freedom of movement,” in the CPLP, but is limited by agreements such as the Schengen area of free movement within the European Union.

The minister stressed, however, that in the case of long-term stays “for purposes of study, work or business (…) the current provisions are of a national nature and Portugal is available to follow the regime of maximum freedom of circulation within the CPLP.”

Santos Silva discussed with MPs the preparations for the next meeting of CPLP foreign ministers, to be held on 19 July in Mindelo, Cabo Verde, in which the agreement on mobility will be discussed, according to Portuguese news agency Lusa.

The draft legal agreement for this regime, presented in April by the CPLP’s Cape Verdean presidency, “has been worked on at a technical level,” and “the best outlook is that the Foreign Ministers can speak and validate the work that has been done.”

Santos Silva also hoped that the agreement would be approved at the next meeting of the organisation, which will be held in Luanda in 2020, “thus closing the Cabo Verde presidency and the Portuguese executive secretariat in the best possible way.” (Macauhub)

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