MACAUHUB NEWS SUMMARISED FOR MOZAMBIQUE 23rd September to 29th September 2015 Mozambican state-owned airline LAM faces difficult economic and financial situation State-owned Mozambican airline LAM plans to hire a consultant to assess the economic and financial situation of the company and present options in the short, medium and long term, said Mozambique’s Minister of Transport and Communications. Minister Carlos Mesquita said that this assessment was intended to obtain further insight into the real situation of the company, which according to figures presented to the Prime Minister, Carlos Agostinho do Rosario, “is not good.” “Unfortunately, the economic and financial situation is not good and we are aware of it, as results over the last two years show,” said Mesquita, although he gave no figures to illustrate the situation. At the private meeting with the airline’s board of directors the Prime Minister pointed out, among other things, the importance of compliance with flight schedules, taking into account constant passenger complaints in this regard. “You have to make an assessment of profitable routes that have to be handled carefully so that the company’s revenues are maximised, whilst also strengthening management,” said Mesquita, according to daily newspaper Notícias. Mozambique starts 2nd Company Census 2014/2015 The 2nd Census of Companies (Cempre) 2014/2015 of Mozambique began Monday with data collection in the provinces of Inhambane, Gaza, Maputo and in the city of Maputo itself, reported the country’s National Statistics Institute (INE). During the census data will be collected that will contribute to programmes that complement the country’s development efforts, and the economic and social units in Mozambique will have a better understanding of the size and expansion of their business sectors. The same information will be used for building/updating the Statistics Units File (FUE) to contribute to improving production and accessibility of quality economic statistics, which is essential for users. Another aim of the census data and FUE is construction of Integrated Economic Statistics System (SIEE), INE also said cited by Mozambican daily newspaper Notícias. SMEs in Mozambique to have more funds available from 2016 September 24th, 2015 Small and medium-sized enterprises (SMEs) in Mozambique will have over 572 million meticais (US$13.2 million) available to fund their activities, said the Director General of the Office for Accelerated Development Zones (Gazeda). Danilo Nalá, cited by Mozambican newspaper Notícias, said that a considerable part of the money available from 2016 comes from a fund for SMEs operating in the regions covered by the Zambezi Valley initiative and the Nacala Corridor, and the remaining portion, estimated at 44 million meticais, would be granted by the Office for Support to Small Investors (GAPI). This information was provided by the Director-General of Gazeda at the Nampula Investor Conference, which recently brought together over 300 government representatives, Mozambican and foreign businesspeople, academics and politicians, among others . South African organisation will co-manage national park in Mozambique South Africa’s Peace Park Foundation will provide US$20 million for activities to boost the Zinave National Park, located in the Mozambican province of Inhambane, according to a comanagement agreement signed Tuesday. The agreement signed with the National Administration of Conservation Areas (ANAC), of the Ministry of Land, Environment and Rural Development of Mozambique, will allow the development of several biodiversity conservation projects, construction of tourist facilities, management and protection of natural resources and support to community programmes and tourism development. Under the agreement the Peace Park Foundation will provide the sum announced over the next five years, although the project implementation phase, which is expected to take two years, will consume about US$9 million. The Minister of Land, Forestry and Rural Development, Celso Correia, acknowledged the many problems facing conservation areas, one of which is poaching, which the Zinave PArk has experienced. Correia also acknowledged that Mozambique did not have a high level of tourist facilities and a well-honed management model like South Africa, Kenya and Namibia, for example, but added that the creation of partnerships like this can make the difference. The National Administration of Conservation Areas (ANAC) is responsible for sustainable management of the country’s conservation areas for biodiversity conservation and development promotion. The Peace Park Foundation (PPF) is a non-profit organisation, whose main area of activity is to support the establishment and development of cross-border conservation areas in Africa. Mozambique and Guinea-Bissau want to cooperate in the cashew sector Mozambique and Guinea-Bissau plan to cooperate in the cashew sector, Mozambican daily newspaper Notícias reported, citing sources from both countries who took part in the International Cashew Conference held in the Mozambican capital. The newspaper also reported that representatives of the two countries have initiated contacts and that Guinea-Bissau, the second largest producer of cashew nuts in Africa with an average of 200,000 tons per year, is seeking information about Mozambique’s experience in industrialisation of cashews. Mozambique, the fourth largest African cashew producer and one of the leaders in cashew nut processing in Africa, intends to improve its knowledge of cashew production. Africa produces half of the cashew nuts sold worldwide, estimated at 3 million tons, but only processes 10 percen of this production, and Filomena Maiopué, director of the Cashew Promotion Institute (Incaju) of Mozambique, advocated an increase in the processing in countries where cashews are produced, “to guarantee jobs and income that the population needs so much.” The director of Incaju said during the conference that Mozambique plans to produce about 100,000 tons of cashews in the 2014/2015 season, 20,000 tons more than the previous season, but about half of what the country produced in the 1970s when was the world’s largest producer with 200,000 tons per year. Mozambique is currently fourth on the list of the largest cashew nut producers in Africa, a list that is headed by Ivory Coast, followed by Guinea-Bissau and Tanzania. The International Cashew Conference is the world’s largest forum for the product, linking research with production and the market by discussing issues such as business, ethical trade and organic production. Mozambique rejects commercial shipping in the Shire and Zambezi rivers September 25th, 2015 Mozambique rejected the Malawi’s government’s intention to use the Chinde and Zambezi rivers for commercial shipping, announced the Minister of Transport and Communications of Mozambique, cited by Radio Mozambique. Wednesday, representatives from Mozambique, Malawi and Zambia met in Lilongwe to analyze the results of a study commissioned from independent consultants on the navigability of those two rivers. Malawi intended to obtain authorization from Mozambique to start shipping in the two rivers for river transport of imports and exports to the port of Chinde in Zambezia province, a distance of 240 kilometers. After the meeting, the Minister of Transport and Communications, Carlos Mesquita said that the first major conclusion that the consultant arrived is that the Shire and Zambezi rivers are not commercially navigable in its natural form, and for that suggested the need to make a dredging about 1.5 meters in order to increase the depth. “To make the initial dredging is necessary to spend about 18 million dollars, then they need more 30 million annually to ensure the maintenance dredging, another 50 million dollars to clean up the vegetation that surrounds the two rivers, beyond other costs of investments in port and operating infrastructure, “said Mesquita. The consultant’s report also indicates that the steaming time in those two rivers will be just 36% per annum, ie the navigation is only possible in about four to five months, according to the daily newspaper Notícias. In view of these findings, Carlos Mesquita said not make sense to consider the two rivers are navigable commercially or spend large sums, especially as the goods are insured for 2015/2016 do not exceed 250 000 tonnes. US companies invest US$16 billion in Mozambique US private investment in Mozambique exceeded US$16 billion in the past decade, the deputy minister for Foreign Affairs, Nyeleti Mondlane said Thursday in Maputo, the Mozambican press reported. “So far, 24 projects have been approved that are likely to create about 4 million jobs, involving private investors in the United States, totalling US$16 billion dollars in the oil and gas sector, agriculture, industry, transport, tourism and services,” said the deputy minister for foreign affairs. The level of trade relations is also encouraging and both countries have recorded growth in trade, with exports of about US$62 million by Mozambique to the United States in 2012 to about US$144 million in 2013, said Mondlane speaking on the 40th anniversary of the establishment of diplomatic relations. In turn, US exports to Mozambique fell from about US$254 million in 2012 to about US$205 million in 2013, Mondlane said cited by Portuguese news agency Lusa. The deputy minister of Foreign Affairs and Cooperation of Mozambique also pointed out that in the last ten years, the US had positioned itself as the largest contributor to official development assistance to Mozambique, totalling about US$2 billion in multifaceted support, focused on the provinces of Sofala and Zambézia in central Mozambique, and Niassa in the north. Chinese ambassador to Mozambique announces cooperation projects September 29th, 2015 China will finance the construction of a paediatric unit and residences for physicians in Beira, in Mozambique’s Sofala province, announced the new Chinese ambassador to Mozambique, Sun Jian. The ambassador,cited by newspaper Notícias, also announced that the government of his country would finance construction of a vocational school in Nampula province. Sun Jian, who was speaking in Maputo after a courtesy meeting with Prime Minister Carlos Agostinho do Rosário, said that in 2016 China would finance, also in Mozambique, the construction of the Mozambique / China Cultural Centre and a Communication and Art School. The projects funded by China in Mozambique include modernisation of the international terminal of Maputo International Airport, construction of the National Stadium in Zimpeto and the new building of the Prosecutor General’s Office (PGR), part of a package which includes the construction of the Palace of Justice premises in the city of Maputo, the Central Office for Combating Corruption and the Criminal Office. Trains will link Mozambique, Zimbabwe and Zambia A train with 20 platforms of two containers each in the next few days s due to start the first 1,000-kilometre trip between the city of Beira, in Mozambique, to Zimbabwe and Zambia, Mozambican newspaper Notícias reported. In future, the newspaper said, the idea is to transport about 10,000 tons per month, with trains travelling in both directions. The three railways that make up the regional association known as the “Southern Africa Railway Association” (SARA) are Mozambique Ports and Railways (CFM), National Railways of Zimbabwe (NRZ) and Zambia Railways Limited (ZRL), which were recently gathered in the city of Beira where they identified 11 corridors, the first of which to start operating is the Beira corridor whose outbound trains will carry fertilisers, while inbound trains will transport Zambian copper. The measure, which aims to bring the cargo which is currently transported by road back to the railway system, was welcomed by the management of Cornelder of Mozambique, the managing body of the port of Beira, during a working visit of these three railway companies to the facility. At the SARA meeting the railway companies agreed that the board of directors of each railway should provide rolling stock such as cars and locomotives. Mozambican state company CFM since 2014 has been working on repairing 300 wagons in Beira and there are plans in the pipeline for another 100 in 2016, as well as the acquisition of locomotives. The chief executive of Cornelder of Mozambique, Adelino Mesquita said the port of Beira was this year expected to process 220,000 containers, more than 2.5 million tons of general cargo and 5 million tons of coal, compared to 207,000 containers, 2.4 million tons of general cargo and 4.6 million tons of coal in 2014. Macauhub News Agency Address: Av. Infante D. Henrique, 43-53 A The Macau Square, 8th Floor – L Macau Phone: (853) -28355315/6 Fax: (853) -28355466 E-Mail: macauhub@macauhub.com.mo Distributed by M.info