The suspension of goods trains in Mozambique's southern zone results in losses of nine hundred thousand dollars, or 65 million meticais, due to the catastrophic impact of rain. Emídio Bata, Southern Executive Director of the Company CFM, confirmed to TVM that passenger and freight trains on the Ressano Garcia, Limpopo, and Goba Lines have resumed circulation following emergency maintenance.
Showing posts with label Economy. Show all posts
Showing posts with label Economy. Show all posts
Impact of rains in the south of the country: CFM sustains loss of 65 million MT
The suspension of goods trains in Mozambique's southern zone results in losses of nine hundred thousand dollars, or 65 million meticais, due to the catastrophic impact of rain. Emídio Bata, Southern Executive Director of the Company CFM, confirmed to TVM that passenger and freight trains on the Ressano Garcia, Limpopo, and Goba Lines have resumed circulation following emergency maintenance.
Tete: More boreholes and Water systems construction gains momentum
The ongoing construction and rehabilitation of more boreholes and other water supply systems will see at least one hundred and eight thousand people have access to clean drinking water this year in Tete province's communities in almost all districts of Tete province.Concurrently, the rehabilitation of one hundred and thirty-five damaged water holes in the various communities is underway.The govt and partners are investing just over one hundred and nine million meticais, according to Carlos Cabo ,the head of the Water and Sanitation department at the provincial Directorate of Public Works in Tete
Cabo also asserted that construction work on seven water supply systems is being completed in six districts of this part of the nation.
This new addition the number of water sources sees the coverage rate in Tete province go from 52, 96 percent, to 56 percent.
Maputo March 27: Bank of Mozambique reduces the monetary interest rate from 16.50 to 15.75 percent.
COMMUNIQUÉ No. 2/2024MONETARY POLICY COMMITTEE
The Banco de Moçambique Monetary Policy Committee (MPC) decided to reduce the monetary policy rate, MIMO, from 16.50% to 15.75%.
This decision is underpinned by the
consolidation of prospects of single-digit inflation over the medium term, in a context where the assessment of the risks and uncertainties associated with inflation projections remain favorable.
Prospects of single-digit inflation remain unchanged over the medium term.
In February 2024, annual inflation stood at 4.0%, foowing 4.2% in January.
Core inflation, which excludes fruits and vegetables and administered prices also eased.
Prospects for single-digit inflation
remain unchanged in the medium term, mainly reflecting the stabiity of the Metical and the impact of the measures taken by the MPC.
For the medium term, excluding liqufied natural gas (LNG), the prospects are for
moderate economic growth.
In the fourth quarter of 2023, gross domestic product (GDP) excluding LNG is estimated to have grown by 3.6%, following 3.3% in the previous quarter.
Including LNG, GDP growth accelerated to 5.4%. in the medium term, excluding LNG production, economic activity is expected to continue to recover, despite uncertainties associated with the impact of climate shocks on agricultural production and various infrastructure.
Pressure on domestic public debt remains high. Domestic public debt, excluding loan and lease agreements and overdue liabilities, stands at 344.0 billion meticais, a 31.7 biion increase
compared to December 2023.
The assessment of the risks and uncertainties associated with inflation projections remains favorable.
Possibe factors restraining inflation in the medium term incude the fiscal consolidation efforts and a milder impact of geopolitical conflicts on the logistics supply chain and on commodity prices in the global market.
The MPC will continue with the process of normalizing the MIMO rate in the medium term.
The pace and magnitude wil continue to depend on inflation prospects, as well as the assessment of the risks and uncertainties associated with medium term projections.
The next regular MPC meeting is scheduled for May 29, 2024
COMMUNIQUÉ No. 2/2024
Maputo, March 27, 2024
Policy rate reduced to 15.75%
Rogério Lucas Zandamela
Governor
Source Banco de Moçambique.
Mozambique: A conjunctivitis outbreak is impacting businesses' production.
Agostinho Vuma, head of Mozambique's Confederation of Economic Associations (CTA), said on Friday in Maputo that the conjunctivitis outbreak in numerous regions of the country is harming business productivity.
"The epidemic of conjunctivitis is harming labour productivity. Companies have started laying off affected employees who have been at home for more than 15 days, impacting corporate performance," Vuma said during the Labour Consultative Commission's first ordinary plenary session, which also includes the government.
According to recent reports from the ministry of health, there are now almost 17,000 Mozambicans afflicted with the adenovirus that causes hemorrhagic conjunctivitis, mostly in the provinces of Nampula and Sofala.
"As a part of society, businesses have an obligation to care for the families who ensure that there will be a market for the goods they create in addition to the workers, who are their most valuable resource. In keeping with this, we would like to express our solidarity with the public being affected by hemorrhagic conjunctivitis and urge everyone to come together and follow the health authorities' guidelines to prevent the disease from spreading and to safeguard everyone's health," Vuma appealed.
On March 11th, according to the official to recent ministry of health data, about 17,000 Mozambicans have been infected with the adenovirus that causes hemorrhagic conjunctivitis, with the majority living in the provinces of Nampula and Sofala.
Conjunctivitis was reported in at least seven Mozambican provinces, with Nampula in northern Mozambique accounting for the majority of occurrences. Meanwhile, on 19 March, the Beira Central Hospital in Sofala province, the country's largest health unit, had seen 2,800 instances of conjunctivitis. Agostinho Vuma also cautioned of Mozambique's "two-speed" economic growth, with positive performance focused in the extractive industry, which is "less than optimal considering the lost value to the economy due to the successive difficulties that have afflicted the business sector".
Many companies have declared bankruptcy as a result of their financial challenges. In this context, it's worth noting that Mozambique's Tax Authority announced a few days ago that 3,000 enterprises had been declared insolvent, with severe consequences for employability, income creation, and the state's ability to collect money," stated the CTA president.
In the same speech, Vuma requested that the draft bill on private security, which "the private sector has been advocating for nearly ten years," be discussed before the Labour Consultative Commission "later this year."
"Unfortunately, insecure job connections have been a defining feature of this industry, which boasts one of the highest employment rates. We think that this situation of insecure work relations might greatly improve with the passage of the law," he stated.
Additionally, he stated that it is important to "emphasise the merits of the document and the benefits" that it "can bring to the fluidity of urban transport" within the "framework of the proposal for the staggering of service timetables," which has been put up by the ministry of transport and communications.
But in order for it to become a reality, the proposer needs to make sure that it complies with the recommendations made by this body's expert technical subcommittees, particularly with reference to the Labour Law.
European Union and Mozambique to continue cooperation on investment for development
The European Union (EU) said that it will continue to encourage European businesses to invest in various Mozambican developmental sectors.The EU ambassador Antonino Maggiore expressed the pledge, Friday on the Island of Mozambique, at the end of the Sectoral Dialogue on Economy, Trade and Investment between Mozambique and the EU.
Antonino Maggiore said that the dialogue resulted in reinforced lessons on cooperation to increase interconnectivity in the business world.
On the occasion, the Minister of Industry and Commerce, Mr Silvino Moreno, said that Mozambique is open to receiving and developing investment projects from the EU and beyond.
On the sidelines of the Sectoral Dialogue on Economy, Trade and Investment between Mozambique and the European Union, a business and investment round table was held between the private sector of the two parties. (RM)
Mozambican sugar hits Malawian market
Mozambican makes its way to the Malawian market
Mozambican manufactured sugar is being exported to Malawi, as a response to the sugar problem in that nation .
20 licenses to local firms to import sugar from Mozambique, Zimbabwe, South Africa and Brazil have been issued by Malawi's Ministry of Industry and Commerce.
The liberalization of the sugar market in Malawi comes at a time when the two local companies producing this product have found their capacity reduced , due to a number of constraints imposed on their production chain as a result of climate change.
Malawi has been in a severe crisis as a result of sugar shortage on the national market .
Consumers revolted as a consequence of hoarding of sugar and subsequent prices' increases which became the trend, where a kilo soared from the old 1700 kwachas, around 64 meticais to 3,000 kwachas, around 115 meticais.
The government, through the ministry of industry and commerce, was forced to liberalize the market, as a way of increasing supply and reducing the price of the product to the consumer.
The monopolistic sugar companies of Malawi contestation of the measures taken, will not, according to commerce minister Sosten Gwengwe , not make the government to revoke its decision, to ensure greater commercial competitiveness.
As of writing, the Malawian government has ordered seven commercial establishments to close due to exbortintant sugar prices.
The executive director of the Malawi consumer association, John Kapito, says the government's decision is welcome and commendable, as the monopolization of the market was a real ordeal for the people.
Mozambican manufactured sugar is being exported to Malawi, as a response to the sugar problem in that nation .
20 licenses to local firms to import sugar from Mozambique, Zimbabwe, South Africa and Brazil have been issued by Malawi's Ministry of Industry and Commerce.
The liberalization of the sugar market in Malawi comes at a time when the two local companies producing this product have found their capacity reduced , due to a number of constraints imposed on their production chain as a result of climate change.
Malawi has been in a severe crisis as a result of sugar shortage on the national market .
Consumers revolted as a consequence of hoarding of sugar and subsequent prices' increases which became the trend, where a kilo soared from the old 1700 kwachas, around 64 meticais to 3,000 kwachas, around 115 meticais.
The government, through the ministry of industry and commerce, was forced to liberalize the market, as a way of increasing supply and reducing the price of the product to the consumer.
The monopolistic sugar companies of Malawi contestation of the measures taken, will not, according to commerce minister Sosten Gwengwe , not make the government to revoke its decision, to ensure greater commercial competitiveness.
As of writing, the Malawian government has ordered seven commercial establishments to close due to exbortintant sugar prices.
The executive director of the Malawi consumer association, John Kapito, says the government's decision is welcome and commendable, as the monopolization of the market was a real ordeal for the people.
Four suspects apprehended by SERNIC for their involvement in the kidnapping of a businessman in Maputo
A businessman who was at his location in the heart of the city is the victim of the kidnapping.
SERNIC additionally aims to free the victim from captivity and establish the truth about the incident.
Mozambique is in a position to benefit from opportunities in the free trade zone in Africa.
According to Silvino Moreno, the President of the Republic's package of economic acceleration measures and the recent start of liquefied natural gas export are evidence of the nation's progress.
This past Friday, Moreno gave a speech in Maputo at the start of a conference on the African Continental Free Trade Area.
Hipólito Hamela, the Economic Advisor at the Mozambican Chamber of Commerce, argues that in order to compete, a business environment must be created.
African Continental Free Trade Area: Opportunities and Advantages for Mozambique is the theme of the meeting on the African Continental Free Trade Area, which brings together representatives of the government, cooperative partners, and businesspeople.
In order to facilitate the movement of goods, services, and people across the African continent, the African Continental Free Trade Area aims to establish a single market that unites the 55 African economies.
Passenger rail service between Mozambique and the Kingdom of Esvathine to resume
This occurs two decades after the two countries' services were terminated.
The first locomotive to transport passengers to the Kingdom of Esvathine will leave Maputo Central Station at 06:00 on the 19th, bound for the Matsapa region, about seven kilometers from Mazzimi, the neighboring country's second largest city.
The President of the Association of Micro-importers of Mozambique, Sudecar Novela, points out that this development will cut costs in commercial mobility.
With the passenger transport train running between Mozambique and the Kingdom of Esvathine, the two countries' commercial ties will be strengthened once more.
The trip will take five to six hours and will cost 1250 meticais.
Commercial operators welcome the resumption of passenger rail transport between Mozambique and the Kingdom of Esvathine.
Niassa Province: More Farmers to grow cotton.
So far, the organization Sociedade Algodoeira do Niassa, which promotes this cash crop, has sold seed to at least ten thousand new producers.
Manuel Delgado, General Director of Sociedade Algodoeira do Niassa, believes that the high price of this crop is what motivates these producers.Sociedade Algodoeira do Niassa will have about 50,000 cotton producers as a result.
Manuel Delgado, the director general of Sociedade Algodoeira do Niassa, stated that 15,000 tons of cotton production are anticipated ,five more tons from the previous harvest.
Sofala: Businessmen Positive about economic recovery after resumption of passenger and freight trains operations.
Ricardo Cunhaque, president of the Business Council in Sofala, claims that the reintroduction of rail transportation will foster trade and regional economic growth.
According to Ricardo Cunhaque, when trains start running again, the cost of some essential goods may decrease in nearly every district that the railway line passes through.
Despite the negative economic effects, the official argued that the suspension of locomotive service in response to the Covid-19 pandemic was a wise decision.
Development of Maputo Bust Rapid Transport to cost more than $250 milion.
Cycle lanes and a BRT are being built as part of the project's execution, which has been in the planning stages for a year.
Luclia Espetonal, a transportation expert and adviser to the minister of transportation and communications, revealed the information on Sunday.
Eneas Comiche, the mayor of Maputo, claims that although the city is not yet prepared to accept bike lanes, a portion of the lanes will be closed to allow for bicycle circulation as part of a planned urban mobility initiative.
This Sunday, saw a march and bicycle race in Maputo, in an event that is part of the celebrations of the fifth week of sustainable mobility.
Nyusi announces first LNG export shipment
In an address to the nation on Sunday, Filipe Nyusi stated that the LNG cargo is the first to be made in accordance with the long-term purchase and sale deal with BP, which includes all LNG produced in Mozambique.
"It is with great honor that I announce the start of the first export of Liquefied Natural Gas (LNG), produced in the Rovuma, in Mozambique, by the Coral Sul FLNG Project. The British Sponsor ship departs Mozambican waters for the international market. "
The Mozambican statesman declared that "Today, Mozambique enters the annals of world history as one of the exporting countries of liquefied natural gas, which, in addition to representing an alternative source of supply, greatly contributes to energy security in countries with the highest consumption."
In his address to the country, Nyusi stated that the completion of this international project is evidence of the market's recognition that Mozambique provides a stable, transparent, and predictable environment for the realization of multibillion-dollar investments, where high technology stands out in order to monetize resources during a phase of energy transition.
"But we urge Mozambicans not to see gas development as the best and only option for our ambition to build Mozambique. In our traditional industries like agriculture, fishing, tourism, and energy generation projects, among others, they must maintain and significantly boost production and productivity".
Huge natural gas resources, the largest ever found in Sub-Saharan Africa, were found in the northern Cabo Delgado province in 2010, and Mozambique has great expectations for them.
Mozambique could be one of the top ten exporters in the world once its potential is realized.
Africa has more than 620 trillion cubic feet of natural gas reserves, according to the BP 2021 Statistical Review of World Energy.
Leaders want to promote action plan for industrialization through the production of LNG for both domestic and international consumption.
Mozambique: Prime rate rises to 20.6%
According to the Mozambican Association of Banks, the country's reference interest rate ('prime rate') for loan operations has risen the most since March 2021, climbing from 20.6% to 22.5%.,
The Bank of Mozambique rate calculated monthly by the AMB and the (BM) is based on a single index (calculated by the central bank), which rose to 17.2%, and a cost premium of 5.3%, (set by the AMB ), which remains the same.
This is the third rise in 2022: in May the 'prime rate' had risen 50 basis points and in June, it rose 150.
To find a rise that is steeper than it is right now, go back to March 2021..
The depreciation of the metical at the time, as well as the dangers to the economy related with covid-19, cyclones, and armed unrest, necessitated a 230 basis point increase.
Increases in the 'prime rate' have been associated with the rise in the monetary policy interest rate (MIMO rate, which influences the formula for calculating the 'prime rate') by the central bank, in order to control inflation.
Year-on-year inflation was 12.01% in September, a slight slowdown of 0.09 percentage points from 12.1% in August, so slight that it is more equivalent to saying that prices have stagnated.
Food, non-alcoholic beverages, and transportation have been the most expensive commodities and services in Mozambique.
The central bank and the AMB decided in 2017 to establish the 'prime rate' in order to eliminate the proliferation of reference rates in the cost of money.
It was introduced at 27.75% at the time and has dropped 525 basis points since then.
According to the promoters, the goal is for all credit operations to be based on a single rate "plus a spread that will be added or deducted from the 'prime rate' through risk analysis."
Mozambique:Starts a national moratorium on the harvest of surface shrimp and mangrove crab
The strategy, according to the Ministry of the Sea, Inland Waters, and Fisheries, aims to ensure that species and stocks will be replaced in time for the upcoming fishing season.
Lidia Cardoso, the minister of the sea, inland waters, and fisheries, promises that the government will keep looking for ways to stop illegal fishing in the nation.
Lidia Cardoso noted this Monday evening on the program Cartas na Mesa on Rádio Moçambique that the nation has the assistance of international partners in this quest for solutions. (RM)
Mozambican medical professionals decide to suspend operations in opposition to the current Salary Table
File
Subject: Strike by Medical Class
Dear colleagues
Yesterday, October 27, 2022, the Medical Association of Mozambique (AMM) hosted a national conference that gathered numerous medical professionals from all over the nation.
The decision to stage a countrywide strike was made by the class in unanimity during this meeting.
We therefore let you know the following: 1.
The strike will begin at 7 am on November 7, 2022, and last for 21 days with the possibility of extension;
2. With the knowledge of His Excellency the President of the Republic, His Excellency the Prime Minister, His Excellency the Minister of Economy and Finance, and Her Excellency the Minister of State Administration, the strike notice letter and the medical class grievances book were sent to the Ministry of Health this morning.
The Mozambican medical profession announced this Thursday, 27, the stoppage of activities in the National Health System sector, in protest against the Single Salary Table, in force since this month in the State apparatus.
After about an hour and a half of analyzing the remunerations that are being paid based on the new table, the medical profession says they have been defrauded by the Government, since the promises that were made do not correspond to what is happening at the salary level.
"We are not being respected," said Gilberto Manhiça, chairman of the Ordem dos Médicos.
The decided stoppage has immediate effects, however, it is still awaiting the decision of the sectors to be covered and that will be announced later today.
Mandlakazi to build cashew processing plant
Photo courtesy of Macao News
A private consortium is investing 225 million meticais (US$3.5 million) for the construction of a cashew nut processing plant in Guezane, Mandlakazi district, in the southern province of Gaza.
According to project owner Super Boa Farm Ltd, construction will be completed in two years and provide 200 permanent jobs. In addition, it is expected that over the next five years at least a thousand jobs will be created.
The company's executive director, Alexandre Mutemba, explained that with the initiative cashew nut production will increase and this will contribute to reducing poverty among local families and mobilising more jobs and tax contributions.
In the first phase, the initiative will directly involve over 500 people and, indirectly, about 1,200 families, mainly small producers of the districts of Mandlakazi and Chibuto, both in Gaza, along with Mabote, Panda, and Funhalouro in Inhambane.
Super Boa Farm financial director, Isac Nhantumbo, says that at the beginning the project will cover an area of one thousand of the seven thousand hectares planned.
“Currently, we have about 600 cashew seedlings planted since the beginning of the preparatory activity in April. Once it starts operating, the factory will process cashew nuts, as well as produce spirits, biodiesel, and charcoal”, he added.
The first stone for the project was laid by the Secretary of State for Gaza province, Amosse Macamo, who said that Mandlakazi has high productive potential, occupying the top position at the provincial level in terms of cashew nut production.
He also explained that Gaza province is promoting the production of cashew nuts through the initiative “One family - 100 cashew trees” which includes the creation of polyclonal fields and nurseries to ensure the multiplication and distribution of seedlings.
As a result of the implementation of this initiative, about 74,550 cashew seedlings have been produced so far and planted over an area of 1,043 hectares. This number is expected to increase significantly by the end of the year.
Source AIM
European Union allocates €28 million for aid to Mozambique
This is part of the €600 million that the European Commission has allocated to the European
Development Fund to finance immediate humanitarian food assistance, food production, and resilience of food systems in the most vulnerable African, Caribbean and Pacific (ACP) countries.
This support, according to a European Union press release sent to AIM, will help partner countries and vulnerable people cope with the consequences of the conflict in Ukraine, specifically the current food crisis and economic shock.
“The EU’s swift and comprehensive response to the current food insecurity in several vulnerable partner countries of the African, Caribbean and Pacific area demonstrates our strong solidarity towards our partners, in particular in Africa”, said Commissioner for International Partnerships Jutta Urpilainen.
Mozambique News Agency Report no.620, 21st October 2022
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