Weekly Media Review: 19 September to 26 September 2014

WEEKLY MEDIA REVIEW: 19 SEPTEMBER TO 26 SEPTEMBER 2014

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TABLE OF CONTENTS

MAPS AND GRAPHS OF INCIDENTS ...... 7

MAP 1: PLOTTING OF REPORTED RENAMO RELATED INCIDENTS: ...... 7

MAP 2: PLOTTING OF KNOWN KIDNAPPING INCIDENTS FROM SEPTEMBER 2013 TO SEPTEMBER 2014: ...... 8

GRAPH 1: REPORTED KIDNAPPINGS IN MOZAMBIQUE PER YEAR: ...... 9

GRAPH 2: REPORTED KIDNAPPINGS IN MOZAMBIQUE PER MONTH: ...... 9

CRIME ...... 10

New-born baby disappears from Nampula Central Hospital ...... 10

South African arrested in possession of cocaine ...... 10

Mocuba resident arrested for possession of human organs ...... 10

Kidnappers sentenced in Beira ...... 11

Two Mozambicans accused of killing a child and removing his organs ...... 11

SECURITY ...... 12

The United States issues travel alert before Mozambique election ...... 12

POLITICS ...... 12

Guebuza urges churches to help in securing peace ...... 12

Government and Renamo approve status for international military observation ...... 13

Foreign minister speaks at climate change summit ...... 14

ELECTIONS ...... 15

EU to observe elections in Mozambique ...... 15

MDM, Frelimo and Renamo all optimistic in Moamba ...... 16

Renamo leader in Niassa Province ...... 17

Universities for all districts, pledges Nyusi ...... 17

Nyusi welcomes FADM’s efforts in Sofala ...... 18

Renamo blocks Frelimo motorcade in Nampula ...... 19

Frelimo prevented from campaigning in Murotone ...... 19

Frelimo accused of assaulting MDM members in Bilene ...... 20

Simango wants changes in education policy ...... 21

Simango promises no shortage of medicines in hospitals ...... 21

Violent clashes in Gaza for second consecutive day ...... 22

Mozambique opposition claims harassment ...... 24

CNE condemns Gaza violence ...... 24

MDM protests against violence in Gaza Province ...... 26

MDM, Frelimo and police clash in Nampula ...... 27

ECONOMY ...... 28

GRAPH 3: ANNUAL MOZAMBIQUE CURRENCY EVALUATION AGAINST THE USD AND EURO ...... 29

Mozambique economy grows 6.9% in second quarter ...... 30

“Mozambique’s inflation to total 3% in 2014” - EIU ...... 30

ADB donates 29.36 million U.S. Dollars to Mozambique ...... 30

Mozambique government moves to announce and ratify some major changes to its resource tax framework ...... 31

India’s Bharat Petroleum sets aside 2 billion U.S. Dollars for Mozambique oil project ...... 32

Rubicon Resources to acquire strategic partner ...... 32

ENH sells 20% stake in Pemba gas terminal ...... 33

ENH looks for an apprentice role in Mozambique LNG marketing ...... 34

BPCL to invest 2.1 billion U.S. Dollars in Mozambique and Brazil ...... 36

Mozambique snubs Zimbabwe ...... 37

Mozambique coal industry ‘reeling’ from price decrease ...... 38

Coal investors warned that Chinese demand will peak in 2016 and may cripple the industry ...... 39

Coal rail car topping system commissioned in Mozambique ...... 41

Gemfields trebles revenue and swings to pretax profit ...... 42

Iluka Resources offers 780 million U.S. Dollars for heavy minerals mine in Mozambique ...... 43

Transnet agrees to a deal with Mozambique and Swaziland ...... 43

With 3 billion U.S. Dollar plan, Mozambique aims to extract regional port, rail integration benefits ...... 44

World Bank finances fishing in Mozambique ...... 45

Mozambique takes delivery of tuna boats after donor criticism ...... 45

Angola and Mozambique facilitate granting diplomatic and ordinary visas ...... 46

Mozambique engages Botswana agents to boost tourism ...... 47

Minor Hotels continues Mozambique expansion ...... 48

Malawian Airlines to fly to Nampula and Tete ...... 49

Pylos Mozambique plans to develop 15 strip malls in coming five years ...... 49

Memorandum Signed for Two New Hospitals ...... 50

Mozambique launches new car brand ...... 51

Nors Group enters Mozambican market ...... 51

64 expats lose jobs in first week of September ...... 51

Foreign investors banned from opening primary schools in Mozambique ...... 52

WILDLIFE PRESERVATION ...... 52

27 people arrested for poaching in Manica during the first half of 2014 ...... 52

22 elephants poached in Mozambique in two weeks ...... 53

PRM seize 26 pieces of ivory in Nampula city ...... 54

Elephant census underway ...... 54

WWF launch drive to cut demand for rhino horn ...... 55

Ten ways to save the rhino ...... 56

OTHER ...... 59

Nearly half of the Mozambican population does not have access to primary medical care ...... 59

Anticipate travel disruption due to Ebola-related flight bans and health screening measures ...... 59

NOTICE

In order to support the campaign to save the Rhino please support the FOCUS-AFRICA Foundation by liking the FOCUS-AFRICA Foundation Facebook Page at : Focus-Africa Foundation as well the FOCUS-AFRICA Foundation Website at www.focus-africa.org

MAPS AND GRAPHS OF INCIDENTS

MAP 1: PLOTTING OF REPORTED RENAMO RELATED INCIDENTS: Updated map plotting known Renamo related incidents in Mozambique from the beginning of 2013 to the present.

Key:

Attacks carried out by Renamo Attacks carried out by FADM against Renamo

MAP 2: PLOTTING OF KNOWN KIDNAPPING INCIDENTS FROM SEPTEMBER 2013 TO SEPTEMBER 2014:

Key:

Kidnapping Victim murdered Simulated/Failed attempts

GRAPH 1: REPORTED KIDNAPPINGS IN MOZAMBIQUE PER YEAR:

30 25

20 31 15 22 10 14 5 6

0 2011/2012 2013 2014 Unconfirmed

GRAPH 2: REPORTED KIDNAPPINGS IN MOZAMBIQUE PER MONTH:

2013 2014

16 15 14 12 10 9 8 6 5 4 4 4 3 2 2 2 2 1 1 1 1 1 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

*Please note: the data present in the graphs and maps is not 100% accurate owing to the high number of unreported cases and irregularities in the documentation of these events by the relevant Mozambican parties, resulting in possible inconsistencies. This graph illustrates the successful kidnapping incidents ONLY and not attempted/aborted/intercepted kidnappings.

CRIME

New-born baby disappears from The police also announced that this Nampula Central Hospital month 133 foreigners had been detained at the airport for attempting to On Friday night (19 September) a new- enter the country with forged visas. 63 born baby disappeared from the nursery of them were arrested last week (12 to of the Nampula Central Hospital. 19 September) – they were 24 Somalis, 13 Bangladeshis, 13 Pakistanis, eight Whilst the circumstances surrounding Ethiopians, two Indians, two Lebanese the disappearance are not yet clear, and an Italian. The entire group was hospital staff has stated that it is travelling on an Ethiopian Airways flight. possible that someone abducted the child. The police said that some of them were sent back to Addis Ababa on the same South African arrested in possession plane later in the day. The others are of cocaine being held in Maputo police stations awaiting repatriation. On Friday (19 September) the Mozambican police and immigration Mocuba resident arrested for authorities arrested a South African possession of human organs citizen at the Maputo International Airport, who was in possession of 4.2 22-year-old Assane Joseph was kilograms of cocaine in her luggage. arrested by the Police of the Republic of Mozambique (PRM) on Saturday (20 The police identified the South African September) in the city of Mocuba, in only as Thandeka. She had arrived in Zambezia province, after being found in Maputo from Addis Ababa on an possession of human organs (namely; Ethiopian Airways flight. The police did two lungs, two kidneys, a heart, spleen not disclose information regarding and a liver – all in a state of where she had departed from originally, putrefaction). but the majority of those caught with cocaine at the Maputo airport have According to Philip Gulete, the district come from Brazil. commander of the PRM in Mocuba, the suspected murderer, drug trafficker and According to reports, the police believe organ trafficker was arrested following a that she is just a transporter (or “mule”) tip off from local residents who became paid by a trafficking ring to carry the suspicious of the foul odour coming from drug. a local establishment owned by José Vasco, who is also imprisoned. Thandeka is the fourth person arrested in possession of illicit drugs at the When the PRM arrived at the airport so far this month. Since the establishment, Joseph attempted to flee, beginning of the year, over 50 people however, he was shot in the leg and have been arrested for smuggling drugs admitted to the Mocuba Rural Hospital into the country, some in their luggage before confessing to the PRM that the and some in their stomachs.

lungs, kidneys, heart, spleen and liver child’s family compensation of two were to be sold for 25 000 Meticais. million U.S. Dollars, converted into Meticais at the exchange rate of the day The forensic team was able to establish of prosecution. The child himself is to that the organs had been removed four receive five million Meticais (about 163 to seven days prior to the arrest 000 U.S. Dollars) in compensation for (between 13 and 16 September) from a the psychological damage caused. teenage victim (whose identity has not yet been established). Two other co-defendants, Jamaludheneen Paleyadil and João Kidnappers sentenced in Beira Francisco, were acquitted since the court did not find that the prosecution On Tuesday (23 September) the Sofala had proved their involvement in the Provincial Court, in the central kidnap plot. Mozambican city of Beira, sentenced three people to between 16 and 20 In a separate case, Tharakral was found years imprisonment for their part in the guilty of burning down a shop in the attempted kidnapping of the son of a Beira neighbourhood of Chaimite, and local businessman a year ago. was sentenced to pay compensation of 600 000 Meticais to the owner. The aborted kidnapping happened in September 2013 at the Cinderella Two Mozambicans accused of killing private school in Beira, where the gang a child and removing his organs attempted to seize the son of Mohammed Akhbar (better known as During the first half of this week (19 to “Papu”). The kidnapping was foiled 26 September) two young Mozambicans when a school worker intervened to were arrested in Mocuba, Zambezia defend the boy. Province.

The gang was then involved in a car The two detainees allegedly murdered a chase with the police and three of them minor in Lower Lugela, and removed his were arrested when their car, a Hilux organs (a lung, both kidneys, the heart Surf, overturned. and liver).

According to reports, the court The PRM received multiple complaints sentenced Muidi Tharakral and and tip-offs from locals who had grown Mohammed Richar, both of Indian suspicious over the two detainees nationality, to 20 years. They were movements. regarded as the leaders of the gang. Papu’s driver, a Mozambican named During the arrests, the alleged buyer Manuel Jose Baer, accused of attempted to evade the PRM, however, facilitating the attempted kidnapping, he was shot and wounded before being was sentenced to 16 years. arrested.

The two Indians will be expelled from It has been reported that cases of the country after they have served their murder for the purpose of harvesting prison term. They must also pay the human organs has increased in

Mocuba, Lugela, Milange and sold in Maputo, South Africa and Morrumbala. The organs are reportedly Malawi.

SECURITY

The United States issues travel alert result in localised demonstrations that before Mozambique election can turn violent, the possible use of force by security services to handle The United States Foreign Department demonstrations or incidents of public issued a travel alert for US citizens living disorder, and disruption of transportation in or traveling to Mozambique as the services.” southern African nation prepares to hold general elections next month. “Depending on election results, unrest and the potential for violence may The State Department warned in a increase immediately following the statement “electoral periods typically election,” the statement added.

POLITICS

Guebuza urges churches to help in are not a task solely for the government, securing peace but should involve all Mozambicans.

On Sunday (21 September) Religious organisations too, he said, Mozambican President Armando should be concerned with overcoming Guebuza challenged the country’s all the difficulties that may arise in the religious institutions to play their role in maintenance of peace. ensuring compliance with the agreements signed between the “The first of these challenges concerns government and Renamo on a the application of these agreements”, cessation of hostilities. Guebuza stressed. That challenge involved “the demilitarisation, Guebuza was speaking in Maputo at a demobilisation, and reintegration of the ceremony in his honour given by the residual forces of Renamo into civilian Brazilian Pentecostal sect, the Universal life, and into the armed forces and the Church of the Kingdom of God (IURD). police”.

The IURD said it held the event in The IURD and other churches, he recognition of the achievements made continued, had a preponderant role to by Guebuza for the welfare of play “in disarming minds so that Mozambican citizens. The President Renamo conforms with the legal order in took the opportunity to insist that the country, and so that no political party questions of development and peace should be armed and have officers of

any level both on active duty and in the Portugal, Britain and the United States. ranks of the party”. So far only the observers from Botswana, South Africa, Zimbabwe and “When they feel that the structuring Italy have arrived. values for the creation of well-being, peace, national unity and national The Cape Verde observers were due to reconciliation are being called into have arrived by now, but the head of the question, religious bodies should join government delegation, Agriculture the voices of all society through Minister Jose Pacheco, said that they ecumenical services and events”, had been held up because of problems Guebuza urged. with their connecting flight in Lisbon.

The President said the churches also Although not all the observers have have an important role in wiping away arrived, those already in Mozambique the tears of those who are still weeping were working to ensure the logistics will for the loss of loved ones who fell during be ready to integrate the rest of the the recent conflict with Renamo. mission.

Guebuza said he regarded the homage Pacheco added that advances have paid to him as a way of encouraging been made towards the integration of Mozambicans to persist in the collective members of Renamo’s “residual forces” commitment to the culture of peace, into the armed forces (FADM) and the consolidation of unity and deepening of police. The government and Renamo national reconciliation. military experts were working, and were drawing up lists of Renamo members to Government and Renamo approve join the army and police. status for international military observation The government and Renamo delegations also reached consensus on The foreign military observers invited to the legal status of the military observers, monitor the cessation of hostilities which some of the countries had between the Mozambican government demanded. According to the head of the and the former rebel movement Renamo delegation, Saimone Renamo, and the subsequent disarming Macuiana, the Vienna Convention on of Renamo, will officially begin their diplomatic relations between states will activities on 30 September. govern the status of the mission.

The date was announced by the The observers will be guaranteed government and Renamo delegations logistical and security conditions (at the on Monday (22 September) at the end expanse of the Mozambican state). of the 78th round of the dialogue that has been under way since April 2013. There will be 23 foreign observers, plus 70 Mozambicans – 35 from the Nine countries have been invited to government and 35 from Renamo. The send observers – Botswana (which central command of the mission will be heads the observer team), South Africa, in Maputo, and there will be four sub- Zimbabwe, Kenya, Cape Verde, Italy, units, in the central provinces of Sofala

and Tete, the southern province of “At the same time we must also mitigate Inhambane and the northern province of our emissions so as to reduce future Nampula. adaptation costs”, Baloi warned.

The mission has been given 135 days to Speaking at the United Nations summit complete its work – but this period may on climate change, held in New York, on be extended. the eve of the annual meeting of the UN General Assembly, he urged the The fate of Renamo’s “residual forces” industrialised countries “to show depends on the teams of government leadership both in assisting developing and Renamo military experts who must countries build their climate resilience present a document to a plenary and on mitigation by increasing ambition session of the government-Renamo in their emission reduction targets”. dialogue concerning all the questions of integrating these Renamo fighters into The future climate regime to be adopted the armed forces and the police. in 2015, he added, should reflect “the historical responsibilities” of the Once these “residual forces” have been developed countries and represent “a “integrated”, all their military equipment fair and appropriate contribution to the will be handed over to the defence and global effort to tackle climate change”. security forces. The memorandum of understanding signed between the Baloi pointed out that “despite the government and Renamo in August insignificant contributions that declares that, when these procedures Mozambique has made to global are completed, “no political party should greenhouse gas emissions, the country have residual armed forces”. is one of the most vulnerable in the world to the impacts of climate change, The observers’ work thus depends being affected by extreme climate heavily on the document from the events such as droughts, floods, tropical government and Renamo military cyclones, storm surges, changes in teams. If this document exists, it has temperature and precipitation patterns certainly not been made public, and no and other phenomena such as sea level timetable has been announced for the rise, saltwater intrusion and increased disarming of Renamo. forest wildfires”.

Foreign minister speaks at climate “The occurrence of these events”, Baloi change summit continued, “has caused the loss of thousands of human lives and On Tuesday (23 September) the significant destruction of public and Mozambican Foreign Minister, Oldemiro private property, as well as social Baloi, called for joint efforts by the infrastructure. These losses have international community to adapt to negatively impacted the growth of the climate change “so that the most country’s GDP and the achievement of vulnerable communities are able to cope the Government’s national objectives for with the impacts they are already poverty reduction and wealth creation”. facing”.

The government had responded by In agriculture and forestry, government adopting, in November 2012, a National action “targets low-carbon agricultural Climate Change Adaptation and practices, reduction of deforestation and Mitigation Strategy. This strategy, Baloi wildfires, and improved management of said, “aims at increasing resilience and biodiversity and coastal ecosystems”. reducing climate risk, both at the community and national level, while The mitigation and adaptation actions in promoting low-carbon development and the strategy “will require significant green economy through their integration technological and financial support, but in sector and local planning processes”. it will also require from Mozambique a tremendous effort in strengthening The strategy also “identifies the potential institutional and technical capacities to for mitigation and low-carbon effectively address this common development in key areas, those which challenge. And this we are committed to provide an opportunity to promote and prepared to do”, Baloi pledged. sustainable development”. UN Secretary-General Ban Ki-moon Baloi said these areas include energy hosted the summit, in an attempt to “where our goal is to improve access to persuade UN member states to reach a renewable energy, increase energy comprehensive new climate agreement efficiency, and promote low-carbon at discussions scheduled for Paris next urbanisation”. year.

ELECTIONS

EU to observe elections in The deployment of a European Mozambique Observation Mission confirms the European Union's commitment to the Following an invitation from the strengthening of an open political Mozambican authorities, the European system in Mozambique and the Union has deployed an Election consolidation of an inclusive democracy. Observation Mission (EOM) to Mozambique to observe the “The EU deployed Election Observation Presidential, Legislative and Provincial Missions to Mozambique in the past and Elections scheduled for 15 October has again answered positively to the 2014. invitation by the Mozambique authorities”, said Sargentini. “Our Catherine Ashton, High Representative mandate is to observe the elections of the Union for Foreign Affairs and without interfering with the electoral Security Policy and Vice-President of process and respecting local laws and the Commission, appointed Judith regulations. I am confident that this EU Sargentini, Member of the European EOM will provide an important Parliament, to lead the EOM as Chief contribution to enhancing the Observer. Sargentini travelled to Maputo on 22 September.

inclusiveness and transparency of the MDM, Frelimo and Renamo all election process in Mozambique". optimistic in Moamba

The EU Election Observation Mission On Friday (19 September) the co- will consist of a Core Team of six ordinator of the election campaign of the election analysts, 20 long-term opposition Mozambique Democratic observers who will be deployed to all Movement (MDM) in Maputo province, Mozambican Provinces, as well as Jose Manuel, told reporters that he is additional short-term observers who will confident that the voters of Moamba arrive shortly before the Election Day. district, about 60 kilometres northwest of the capital, want change. The EOM will closely follow the electoral process and make its assessment with He claimed that Moamba is now free of reference to Mozambique internal law “instrumentalisation” by the ruling as well as regional and international Frelimo Party - nonetheless, he commitments. complained that Frelimo supporters were hindering the MDM's work by This analysis will take into account ripping down its election posters. aspects such as the legal framework, the election administration performance, The people of Moamba, he said, want the political campaign activities, the clean water sources, roads and respect for fundamental freedoms, the improved transport because they are conduct of the media, the voting process tired of relying on an infrequent train and counting. Attention will also be service if they wish to travel outside the dedicated to the complaints and appeals district. phase, and to the process of announcement of the results. The EU The MDM in the district was preparing Election Observation Mission abides by for the planned visit by the party's a code of conduct which ensures the presidential candidate, Daviz Simango. mission's independence and integrity. “The population has enormous expectations to see, greet and talk with In addition, the EU has vowed to pay our leader”, he said. special attention to the election violence that has marred the country since the Both the other main political forces, the second week of the election campaigns. ruling Frelimo Party and the former rebel movement Renamo, are convinced that Shortly after Election Day, the mission their door-to-door campaigning in will issue a preliminary statement of its Moamba is bearing fruit findings at a press conference in Maputo. A final report, including Carménia Canda, spokesperson of the recommendations as contribution for Frelimo election office in Moamba, future electoral processes, will be declared that voting for Frelimo and its presented at a later stage. presidential candidate, former Defence Minister Filipe Nyusi, means voting “for continued expansion in water supply, the electricity grid, access roads and education”.

She claimed it was only with Frelimo “We fought for democracy. Today we that continued development of Moamba, are able to implement democracy we and of the country in general, could be have always advocated in governing the guaranteed. country. To do this, all of you, together with your family and friends, must vote “This message is being gratefully in Dhlakama and Renamo” he appealed. received and has strong support from the population”, she added. “In Renamo will continue to address voters Moamba, Frelimo doesn't feel the in the administrative post of Inhamizua, presence of any opposition parties”. specifically in Manga and Chingussura, where they have pledged to improve the As for Renamo, its political delegate in urban public transport system if they win Moamba, Amosse Machavane, declared the upcoming elections. his certainty that this year Renamo and its leader, Afonso Dhlakama “will Also on Thursday, the political delegate emerge victorious”. of Renamo in Vilanculos, John Tangune, congratulated the FADM and He claimed that voters understood that former combatants, thanking them for only with Renamo in power would their services during 50th anniversary of Mozambique be able to undergo the start of the armed struggle for genuine development. Moamba lacked national liberation. hospitals, doctors and secondary schools “which only Dhlakama can According to Tangune, Renamo has guarantee”, he added. very strong reasons behind celebrating the 50th anniversary of the struggle for The only problem Machavane could see liberation as Dhlakama was a former in Moamba was that Renamo had run fighter against colonial domination. out of propaganda material and was waiting for fresh supplies. Universities for all districts, pledges Nyusi Renamo leader in Niassa Province Frelimo’s presidential candidate, Filipe Renamo’s presidential candidate, Nyusi, has promised that, if elected, he Afonso Dhlakama, arrived in Lichinga on will lead the construction of universities Thursday (25 September) for the Niassa in all of Mozambique’s rural districts, in leg of his election campaign. order to train young people so that they can become “generals in the struggle On Thursday afternoon Dhlakama against poverty”. concluded his campaign in Montepuez, Cabo Delgado, where he urged voters Speaking on Sunday (21 September) at to give Renamo an opportunity to rule a campaign rally in the town of Alto the country. Molocue, in the central province of Zambezia, Nyusi said that, in the 39 Speaking at a popular rally, Dhlakama years of Mozambican independence, stated that since the dawn of national successive Frelimo governments had independence he and Renamo have built secondary schools in all 128 fought for democracy in the country. districts, and some universities. He

believed the conditions now existed to income and expenditure, so that we all complete this task, by building know what we have produced and so universities in all district capitals that do that we can see whether or not we need not yet have higher education facilities. to increase production”.

“If you elect me, I will order at least one Meanwhile the campaign of Afonso university to be built right here in Alto Dhlakama, leader of the former rebel Molocue, so that young people living movement Renamo ran into trouble on here can learn know-how and can lead Saturday (20 September), when the development of your district”, said Dhlakama’s plane was unable to land in Nyusi. Moma district, in the northern province of Nampula. Nyusi believed that, if elected, he could “do more than his predecessors in the The pilot explained to reporters that the same period of time because they did runway at Moma was very short and, to not have the same number of skilled make matters worse, the large crowd people who now exist in the country, waiting for Dhlakama had invaded the trained at the schools and universities aerodrome, making landing extremely built over the four decades of Frelimo hazardous. rule.” Dhlakama flew on to the neighbouring He said that in Maputo former President district of Angoche, where he told a Joaquim Chissano had told him that his large crowd that “I won’t lie to you. I task as head of state would be easier want your votes so that I can govern you because he would have more than – but to govern you well and end slavery enough competent cadres at his once and for all”. disposal to help him govern. Dhlakama declared “I suffer your Chissano was right, Nyusi said, since at suffering. I was born in the countryside independence only a handful of like you, and all that you go through I go Mozambicans had university degrees, through. And so vote for me, vote for but now there are tens of thousands of Renamo so that, once and for all, we Mozambicans with higher education can install a democratic state”. who could give classes in the universities that he would build in all the Nyusi welcomes FADM’s efforts in districts. Sofala

He said the time had come for On Wednesday (24 September) Mozambicans to handle the Frelimo’s presidential candidate, Filipe development of their own country rather Nyusi, kicked off the Sofala leg of his than relying on foreign experts. “We election campaign by welcoming the must have more universities so that we efforts and progress made by the all know how to do what we want to do”, Mozambican National Defence Force he said. (FADM).

He promised a transparent government. Whilst in the Marínguè district, Nyusi “I will order the publication of all our thanked the FADM for their courage in

maintaining peace, the defence of their September) a Frelimo motorcade homeland and territorial integrity. passed near the stadium where Renamo leader Afonso Dhlakama was Nyusi is scheduled to campaign in addressing a rally. It was intercepted by Cheringoma, Mwanza and Buzi shortly. Renamo supporters, who vandalised one of the vehicles and destroyed Renamo blocks Frelimo motorcade in Frelimo propaganda material. Nampula During the Frelimo campaign in On Tuesday (23 September) Renamo Nampula, Taipo has promised that, in supporters blocked a street in the the event of a Frelimo victory, the northern city of Nampula that was due to government will set up more be used by a motorcade of the ruling professional training centres, to endow Frelimo Party, in the campaign for the young people with the skills required to general elections scheduled for 15 enter the labour market, or to make a October. living out of self-employment.

The Frelimo motorcade, led by Frelimo “To achieve this goal, we have to vote Central committee member and Labour for Frelimo and for its presidential Minister Helena Taipo, had just held a candidate, Filipe Nyusi, on 15 October”, meeting with religious leaders in the she urged. neighbourhood of Muahivire, and was on its way to the Nampula suburb of She also claimed that one of the Muhala, when it found its way blocked priorities of a Nyusi government would by a group taking instructions from a be to tar roads in Nampula, including Renamo parliamentary deputy, Irene those that link the city to other districts Joaquim Muanaco. in Nampula province.

About a kilometre from Muhala, the Taipo repeated Nyusi's pledge to Renamo supporters blocked the road transform Mozambican farming, through dancing and singing, and throwing the mechanisation of agriculture. She insults at Frelimo. also wanted to see new industries set up in the province that would use Taipo reportedly chose not to react. Nampula crops and mineral resources Without saying a word in response to as their raw material. the Renamo insults, the Frelimo motorcade turned round and took a She regarded industrialisation as a different route to reach Muhala. sustainable way of levering the development and well-being of all Irene Muanaco boasted of her group's Mozambicans disruption. “This is deliberate. We did this deliberately”, she told reporters. Frelimo prevented from campaigning “Everyone is free to do whatever they in Murotone like. They (Frelimo) do it too”. Frelimo has stated that they had been This is not the first Renamo provocation prevented from campaigning in against the ruling party. On Sunday (21 Murotone, Zambezia Province.

On Thursday (25 September) the “These attacks are frequent”, said spokesman for the Frelimo Electoral Jamisse. “We have informed, on several Office in Zambezia, Francisco Graciano, occasions, the election observers who stated that Renamo has prevented come here, but nothing changes. It just Frelimo from accessing the area. carries on”. Graciano has confirmed that the matter has been logged with the Provincial He claimed that the MDM had tried to Election Commission of Zambezia. hold a rally in the district capital, Macia, but Frelimo hostility forced it to be called In addition, Graciano stated that Frelimo off. has been victimised in almost every single district as their campaign material “We were and are being sabotaged”, has been destroyed by children (Frelimo Jamisse said. “They don’t want to see stated that children are utilised by other members of other parties”. parties to destroy campaign material as they cannot be arrested due to their He accused the police of complicity with age). Frelimo. When members of other parties are accused of electoral offences, the Frelimo accused of assaulting MDM police immediately arrest them, Jamisse members in Bilene said, “but when it’s Frelimo members, they are not detained, and the police The MDM in Bilene district, in the just say they have to open a case file”. southern province of Gaza, has accused the ruling Frelimo Party of assaulting its The Frelimo spokesperson in Bilene, members and sympathisers and Samuel Machaieie, denied the MDM sabotaging its election campaign. accusations. “This isn’t true”, he said, “We don’t attack any party, and we don’t The campaign for the October general vandalise anybody’s campaign. A young elections began on 31 August and since man in an MDM T-shirt walks past our that date, according to the MDM deputy office every day, and we’ve never done delegate in Bilene, Manuel Jamisse, his anything to him”. party has been “suffocated” by continual Frelimo attacks against its members. “We live together with these people”, Machaieie stressed. “Yesterday a supporter came to our office and complained that he had been On Thursday (18 September), the assaulted by Frelimo members”, chairperson of the National Elections Jamisse told reporters. “He was wearing Commission (CNE), Abdul Carimo, an MDM T-shirt, when suddenly a group urged all political parties and voters to of Frelimo members approached and halt the violent incidents that have ripped off the shirt. They then forced him characterised the election campaign in to wear a Frelimo T-shirt”. recent days.

Reports suggest that it was easy to Carimo reminded the parties: “by law it identify the attackers because they were is forbidden to wage an election in cars plastered with Frelimo posters, campaign by using force and incitement and were wearing Frelimo T-shirts. to violence”.

Simango wants changes in education initially chosen, in the Infulene policy neighbourhood, had been occupied by the ruling Frelimo Party. On Saturday (20 September) Daviz Simango, the leader and presidential Interviewed by local television stations, candidate of the MDM, warned that Frelimo representatives insisted that foreigners could one day govern the they had booked the area with Matola country again, unless there is serious City Council before the MDM applied to investment in education. use it.

“Tomorrow we may be governed by The MDM avoided any confrontation, foreigners because we are not investing and Simango's motorcade drove on past in education”, he declared at an election the Frelimo group into T3. rally at the T3 market, on the outskirts of the southern city of Matola. In Maputo city, a lengthy Frelimo motorcade, led by Political Commission MDM education policies, Simango said, member Conceita Sortane, drove will require extensive investments in through the streets, bearing the expanding the school system, message that only with Frelimo and its guaranteeing access, and democratising presidential candidate, Filipe Nyusi, the management of education could the country meet the challenges institutions. facing it.

He said the MDM advocates an The priorities for governance, the integrated education policy, and Frelimo campaigners said, included the recognises education as an inalienable consolidation of national unity and the right of all citizens, which cannot be rule of law, and the defence of delayed. independence, sovereignty, order and public security. Simango noted that the illiteracy rate in Mozambique remains high. The latest The Frelimo militants also called for official statistics, from 2012, give the strengthening the capacity of the State adult illiteracy rate as 48.1%. To deal to respond effectively to the wishes of with this, Simango called for boosting the population, to create wealth and investments in adult education fight poverty, and to consolidate the programmes. culture of peace, dialogue and democracy. He added that the MDM manifesto also calls for an expansion in technical and Simango promises no shortage of professional education. He said it was medicines in hospitals necessary that these training centres “should be managed in co-operation On Tuesday (23 September) the leader with business bodies”. and presidential candidate of the MDM, Daviz Simango, promised that, if he is Simango was forced to hold this rally in elected president, his government would a site different from that originally ensure that the country's hospitals are planned. The MDM found that the place properly stocked with medicines.

Speaking at an election campaign rally must do their jobs competently, in Magude district, in Maputo province, effectively and efficiently”. Simango accused the current government of being “more concerned Dhlakama's second rally of the day, in about buying weapons than medicines the Cabo Delgado provincial capital, for our hospitals”. Pemba, was cancelled because he arrived in the city late from Mocimboa An MDM government, he pledged, “will da Praia. Renamo supporters were kept guarantee that there will always be waiting at the Pemba Municipal Stadium adequate medicines and treatment in all from the morning until 18h00 when the the hospitals”. Renamo provincial delegate, Mustagibo Rachide, apologised for the fact that In addition new hospitals would be built, Dhlakama would no longer be speaking which would become centres of to them. excellence, equipped with new technologies for diagnosis, treatment Violent clashes in Gaza for second and rehabilitation, and with duly consecutive day qualified technical staff and managers. An MDM government, he pledged, Violent incidents continued to mar the would be committed to mass training of general election campaign in the health professionals. southern Mozambican province of Gaza for the second day running on He also promised that the work done by Wednesday (24 September), as groups public servants would be rewarded with of supporters of the ruling Frelimo Party an appropriate salary, and criticised the tried to prevent Daviz Simango, leader low wages currently paid to teachers and presidential candidate of the MDM and doctors as incompatible with the from campaigning. importance of the work they do. In the town of Chibuto, reports suggest “The wages of teachers and doctors that a furious Frelimo group harassed should be in line with the activities which Simango as he tried to walk round the these professionals undertake, and main market. MDM members used clubs should satisfy all of them”, Simango and similar weapons to protect declared. themselves from Frelimo attack.

In the northern town of Mocimboa da Reporters of the “Mozambique Political Praia, in Cabo Delgado province, Process Bulletin”, published by AWEPA Afonso Dhlakama, leader of the former (European Parliamentarians for Africa) rebel movement Renamo declared that, and the Mozambican NGO CIP (Centre if he wins the elections, he will not expel for Public Integrity), saw the Frelimo anybody from the state apparatus. group hurl bottles and stones at Simango’s entourage. According to the head of the Renamo Youth League, Ivone Soares, Dhlakama Although there were 10 police officers told the Mocimboa rally that “What we accompanying Simango, plus four local shall demand is that each and every Chibuto police, the footage shot by the member of the public administration independent television station STV

showed they were quite incapable of Mandlakazi market, he faced hostility dealing with the situation. They were from the vendors, most of them women, unable or unwilling to separate the who did not want to hear anything he Frelimo group from the MDM had to say. “Go away! We don’t know campaigners, and made no arrests. you here”, they shouted.

As a result, the clash lasted for around Simango remained calm, and continued an hour, and there are reports of nine his attempts to greet some of the people injured – five from Frelimo, three vendors, before returning to his from the MDM and one policeman. motorcade and heading to the neighbouring province of Inhambane. There were similar scenes at Simango’s next stop, the town of Mandlakazi. Again His entry into Inhambane was entirely journalists could see that it was the calm. There was no hostile mob waiting Frelimo crowd that attacked the MDM. for him – instead he was greeted by a Three people were injured, one of them throng of MDM supporters and cultural seriously. Police fired three shots into groups playing on the traditional the air to disperse the crowd. Inhambane xylophones known as timbila. “Now it’s us. Go back to your own people because this land is ours”, some On Tuesday (23 September), Frelimo Frelimo members shouted. groups had tried to bar Simango’s entry into Gaza at the town of Macia, resulting Some of the Frelimo group had in ugly clashes with Simango’s seemingly been the victims of bodyguards. Simango then drove on to disinformation and did not know the Chokwe, only to find that Frelimo difference between the MDM and the supporters had barricaded the road into former rebel movement Renamo. the town. Reporters found that MDM members in Gaza are labelled “armed bandits” – the Eventually police intervened to clear the term used by the government to road, and Simango was able to address describe Renamo during the war of a rally. Here he called on his supporters destabilisation. not to respond to any provocations.

“They killed my entire family!” declared But elsewhere there was a response. In one Mandlakazi resident, Regina Sitoe. the central market in the MDM For her, the MDM had no right to enter stronghold of Quelimane, in Zambezia Mandlakazi. province, campaigners from the Frelimo- affiliated Mozambican Women’s In reality, the MDM has killed nobody. Organisation (OMM) came under verbal The party was only set up in 2009, as a attack from a sizeable group of MDM result of a split in Renamo. Although women, who tried to drown out their Simango was once a Renamo member, opponents’ voices, shouting Simango’s he played no role during the war. name repeatedly.

Simango was unable to hold a rally, STV coverage of this confrontation either in Chibuto or Mandlakazi. At the showed scuffles inside the market

between the two groups, though there "People in the motorcade were hit with were no reports of injuries. stones, and beaten with sticks and machetes by Frelimo men," said The police blamed the Tuesday clashes Carmona. on the MDM for arriving late in Gaza. According to Gaza police spokesperson "It happens almost all the time," Jeremias Langa, the MDM initially told Carmona claimed, describing the recent the police that Simango’s motorcade attacks as the "worst" and accusing would arrive in Macia at 10h00. The police and prosecutors of not taking police waited there from 09h30 to action because they were "under the 14h30, and since the MDM had not control of Frelimo". informed the police of any delay, the policemen in Macia were then sent Observers say that Simango presents a elsewhere. challenge to both ruling Frelimo's candidate, Filipe Nyusi and the leader of Simango arrived in Macia at around the main opposition party, Renamo, 16h30 and the journalists with him noted Afonso Dhlakama. just two policemen on duty. "Having a third actor running is creating “When more men were mobilised to nervousness in both other parties," guarantee security and avoid any Hortencio Lopes a researcher for the constraints, the clashes had already Maputo-based think tank, the Centre for occurred, and the delegation of the Mozambican and International Studies, MDM candidate had left for Chokwe”, said. said Langa. "This nervousness is creating both Mozambique opposition claims verbal and physical violence," he said, harassment especially "on the part of Frelimo."

On Thursday (25 September) the MDM Last week the National Electoral accused government supporters of Commission issued a strong warning to attacking their presidential candidate's political parties to "respect the convoy with sticks, stones and constitution and rule of law... and machetes while he was campaigning on abandon the resource to violence," Tuesday (23 September). without naming specific parties.

The MDM said that the ruling Frelimo CNE condemns Gaza violence party supporters attacked Daviz Simango's motorcade in the south of the The Chairperson of Mozambique’s country ahead of the 15 October general National Elections Commission (CNE), election. Abdul Carimo, has condemned as “disgraceful” the violent clashes in the MDM spokesperson, Sande Carmona southern province of Gaza between told reporters that Tuesday's incident, supporters of the ruling Frelimo Party part of a series of attacks on the party and of the MDM. this week, left at least three people injured and four vehicles damaged.

Carimo was speaking on Wednesday “and so it makes no sense that, just a (24 September) at the opening of a few weeks later, we citizens of this meeting between the CNE, political country are injuring and insulting one parties and the General Command of another. It’s not acceptable”. the Mozambican police. The meeting had been scheduled before the Gaza Carimo urged the leaders of political events, but the clashes certainly gave it parties to go public and appeal to all added relevance, particularly since the citizens “not to embark on this path”. police have been accused of siding with Frelimo. The political leaderships, he said, “should make a public commitment that Carimo mentioned only the this will not happen again, and if confrontations between Frelimo and the possible apologise. This will encourage MDM on Tuesday (23 September), in their members not to practice such the towns of Macia and Chokwe, clearly shameful acts again”. unaware that the clashes were continuing, as Frelimo groups tried to So far there has been no such disrupt Simango’s campaign in Chibuto statement forthcoming from political and Manjacaze. leaders, although Simango has repeatedly urged his followers not to “This kind of incident stains the entire respond to provocations from their electoral process”, said Carimo. “These opponents. All political parties signed up are incidents which should never have to a code of conduct before the election happened. This level of violence should campaign began, but in Gaza the code never happen again”. was completely ignored.

The Gaza clashes “disgrace our CNE spokesperson Paulo Cuinica, who country”, he stressed. “Nobody can feel was interviewed on Wednesday night, happy about what has happened”. said that violence could have a serious impact on the elections. He warned the The clashes were precisely the sort of rioters that the electoral legislation gives event which the CNE had repeatedly the CNE the power to rerun the urged political parties to avoid, he elections in any part of the country added, and they should ensure that where it feels that the conditions did not there was never any repetition. favour a free and fair vote. The law, he added, did not set a limit to how many The election campaign should unfold “in times the elections could be rerun. a climate of harmony, tolerance and friendship”, said Carimo. “It should not The prosecution services are also taking be a moment of violent disputes and an interest in the Gaza violence. The conflicts which endanger the physical Attorney General’s Office has asked for integrity of people and their very lives”. copies of the tapes of the independent television station STV showing the Recently the country had rejoiced at the clashes. declaration of a cessation of hostilities between the government and the former rebel movement Renamo, he recalled,

MDM protests against violence in brotherhood may prevail”, Amarane Gaza Province urged.

On Wednesday (24 September) the The MDM mayor of Quelimane, Manuel MDM marched through the streets of de Araujo, pointed out that, if it wanted Quelimane, capital of the central to, the MDM could cause Frelimo the province of Zambezia, calling for a same kind of problems in Zambezia that peaceful election campaign and Frelimo had caused for the MDM in protesting against the previous day's Gaza. However, he argued that this was violence in the southern towns of Macia not MDM policy. Instead, he asked and Chokwe. MDM members and sympathisers to remain vigilant in order to guarantee a In both towns, the motorcade of MDM campaign without violence, and equality leader and presidential candidate Daviz of rights for all Mozambicans. Simango came under attack from supporters of the ruling Frelimo Party. In A press release from Simango's office the chaos that followed in Macia, blamed the Gaza violence on “Frelimo Simango's bodyguards fought back, groups of vandals”, and claimed it was smashing the windows of Frelimo cars part of “a systematic strategy of the and striking out with clubs at some of ruling party”. the Frelimo group. “The attack on Daviz Simango's The Frelimo group allegedly barred the motorcade was brutal and was entrance to Chokwe, and further unquestionably intended to endanger confrontations ensued. Eventually the the lives of the presidential candidate police intervened, and Simango was and his companions”, said the release. able to enter Chokwe and address a “The worst did not happen because of substantial crowd. the prompt and rapid intervention of the MDM candidate's personal security”. In Quelimane, the Wednesday marchers Following this statement, the MDM carried placards bearing slogans such accused Frelimo supporters of as “Don't kill our President” and “Gaza is attempting to assassinate the MDM’s part of Mozambique” presidential candidate.

Speaking at the end of the march, the At the bridge over the Limpopo river, MDM provincial delegate, Ezequiel which provides access to the Gaza Aramane, condemned the Gaza provincial capital, Xai-Xai, the police violence, but promised there would be refused to let the motorcade cross. The no retaliation in MDM strongholds such MDM release described this as a as Quelimane. “Zambezia cannot violation of the freedom of movement retaliate, because Mozambique belongs and of Simango's right to wage his to all of us”, he said. election campaign.

“We call on the government and the According to reporters who were institutions that deal with public security accompanying Simango, the police were and tranquillity, to impose the law demanding that Simango's bodyguards without any exclusions, so that be disarmed. The MDM refused to

accept this demand, and after two struggle for Mozambican independence hours, the police allowed Simango and in 1964. This year the date is even more his bodyguards to enter the city, still solemn than usual, since it is the fiftieth bearing their weapons. anniversary of the start of the uprising against Portuguese colonial rule. The MDM release said that Simango remains “in perfect physical, moral and The MDM prank was thus viewed as spiritual health. He is well protected and defiling one of the most important dates still more motivated to continue his in the Mozambican political calendar. election campaign”. The Nampula ceremony began calmly The MDM guaranteed that it will not with the provincial governor, Cidalia retaliate, and will behave in line with its Chauque, laying a wreath at the slogan “Mozambique for all”, monument, in memory of those who fell persevering “in its historic mission of during the independence war. contributing decisively to a civic and civilized election campaign”. But the atmosphere changed radically when the MDM group appeared bearing MDM, Frelimo and police clash in the mock coffin, and placards insulting Nampula Nyusi. Frelimo members in the square were outraged, and seized the mock On Thursday (25 September) the ruling coffin in order to destroy it. Frelimo Party clashed with supporters of the MDM when the latter attempted to What was supposed to be a respectful stage a demonstration in the Square of event remembering those who gave Mozambican Heroes, in the northern city their lives for the country’s liberation, of Nampula. degenerated into street fighting, with the two sides throwing stones at each other. The MDM members attempted to bring a mock coffin, adorned with an image of The PRM intervened, using rubber Frelimo’s Filipe Nyusi, into the square. bullets and tear gas. Even so, it took When asked why they were staging them about half an hour to bring the such a tasteless display in such solemn situation under control. Members of the surrounding as Heroes’ Square, some two parties and policemen were injured MDM members told reporters it was in in the brawling. In addition, a number of retaliation for the Frelimo attacks school children (who were on a school against the motorcade of the MDM field trip to witness the ceremony) were leader and presidential candidate, Daviz injured during the event. Simango, in the southern province of Gaza on Tuesday and Wednesday (23 One MDM member approached by and 24 September). reporters, Aldo Monteiro, launched into a personal attack on Nyusi. He stated, The Nampula MDM are said to have “The people of Nampula don’t want to chosen the worst possible date for their see that man leading things here”, he demonstration. 25 September was said. “The Frelimo candidate was in that Armed Forces Day, and marks the coffin. That means he doesn’t exist for anniversary of the launch of the armed us. He can’t lead us. He was executive

director of CFM here and he didn’t work find who was responsible for what well. He expelled many workers, and happened in this square”. now he comes back and asks for our votes.” Joaquim suspected that the MDM demonstration was a deliberate The head of Frelimo’s Nampula provocation against Frelimo, but provincial election brigade, Germano pledged that the ruling party would not Joaquim, accused the MDM of rise to the bait, but would respond in a “vandalism”. He considered the civilised manner. behaviour of the MDM group as an affront to Mozambican identity and to According to some, through this grossly the values which political parties should insensitive behaviour, the MDM is in hold dear. danger of throwing away any public sympathy it may have earned because The ceremony, which the MDM had of the Frelimo attacks against disrupted, he pointed out, did not belong Simango’s motorcade in Gaza. to Frelimo, but to the entire Mozambican nation. Shortly after the incident, President Armando Guebuza condemned the “This was something programmed and violence between political parties and organised to sow panic”, he accused. their members during the recent “We think this is an act that should be campaigns. vehemently condemned. We need to

ECONOMY

Mozambique Exchange Rate: 24 September 2014

Currency Buy Sell

EURO 39,33 39,59

USD 30,61 30,81

ZAR 2,75 2,77

Fuel Prices

Petrol Diesel

47,52MT per Litre* 36,81MT per Litre*

* Price only valid for Maputo, Beira and Nacale.

GRAPH 3: ANNUAL MOZAMBIQUE CURRENCY EVALUATION AGAINST THE USD AND EURO

Euro USD

45 43,66 43,88 43,9 43 43,33

42,5 41,37 40,99 40,99 41,29 40,65 40,47 40,12 39,97 39,88 39,66 40

37,5

35 32,88 32,04 32,5 31,17 31,27 31,29 30,66 30,6 30,87 30,67 30,65 30,57 30,72 30,01 30 29,55 30

27,5

Mozambique economy grows 6.9% in The 3.1% average recorded in the second quarter annual inflation rate in August, together with an international climate Mozambique’s economy grew by 6.9% characterised by lower food prices and a in the second quarter of 2014 compared marginal decline in the value of oil, were with the same period of 2013, the behind the review, the EIU said in its National Statistics Institute (INE) said on macroeconomic analysis of the country Wednesday (24 September) in Maputo. for September.

The best performance was recorded by The budget deficit projection rose the secondary sector, which grew by slightly from 10% to 10.1% of gross 10.9%, particularly manufacturing, with domestic product (GDP), which the EIU a growth of 12.5%. said was the result of a combination of decreased international donor The tertiary sector ranked second with assistance to the State and increased growth of 7.4%, driven by the restaurant public spending. segment that grew by 7.9% and the primary sector came in last with growth In the document, the EIU kept its of 6.6%, due to the mining industry. forecast for economic growth in Mozambique in 2014 unchanged at Agriculture, livestock, hunting, forestry, 7.3%, for a real value of GDP of 16.2 fishing and related activities continued billion U.S. Dollars with the Industrial to have the highest weight in the sector registering growth of 9%, Mozambique economy, accounting for Services of 7.2% and Agriculture of 6%. 35.6%, followed by manufacturing with 10.3%. In terms of exports, the EIU expects Mozambique to reach 4.4 billion U.S. The third position is occupied by the Dollars in 2014, gradually rising to 6.8 retail and repair services segment, with billion U.S. Dollars in 2018, when the a weight of 9.3%, followed by transport, value of imports is expected to be storage, information and around 12.8 billion U.S. Dollars due to communications with 7.9%, and the real importing equipment for exploration of estate rental and business services with natural resources. 6.2%. ADB donates 29.36 million U.S. “Mozambique’s inflation to total 3% Dollars to Mozambique in 2014” - EIU The board of directors of the African Mozambique’s projected average Development Bank (ADB) has approved annual inflation in 2014 has been a 29.36 million U.S. Dollar budget revised downwards from 3.9% to 3.0% support grant to finance the first phase by the Economist Intelligence Unit (EIU) of the Economic Governance and which also increased the forecast Inclusive Growth Programme (EGIGP) budget deficit for this year by 10 basis in Mozambique. points to 10.1%. According to the Bank, the grant is the first of three general budget support

operations for 2014, 2015 and 2016. In management and a friendlier business total, these are budgeted at 59.73 environment”. million U.S. Dollars. Mozambique government moves to The programme aims to promote announce and ratify some major inclusive and sustainable growth by changes to its resource tax improving transparency and framework accountability in public finance, developing the management of natural The gap in funding to support large resources and enhancing the infrastructure requirements in environment for the private sector. Mozambique’s resources industry is about to get smaller as the Mozambique The Bank stresses that the grant is in government moves to announce and support of the Mozambican ratify some major changes to its government’s Poverty Reduction resource tax framework. Two new Strategy (PARP) and long-term private pieces of legislation have been put sector development strategies. before parliament in the form of a Mozambique Mining Tax Law and a Gas It states “EGIGP underscores the fact and Petroleum Tax Law. Both are that Mozambique needs to translate the expected to be signed into law in the high economic growth rates experienced last quarter of 2014 under the current in the past two decades into inclusive cabinet. Additionally a windfall profit tax and sustainable dividends”. announcement coming out of Mozambique is imminent. The bank claims “the focus on inclusive growth is reflected in EGIGP’s emphasis Although Mozambique’s economy is on demand-side governance, currently monopolised by coal exports, transparency and participatory natural the gas (and specifically LNG) market resource management, and job creation for Mozambique will propel Mozambique in particular through micro-, small and into the top 5 Gas producers in the medium enterprises”. world by 2020.

Among the government bodies that will "Mozambique has probably made the receive direct financial support are the biggest gas discovery in the world in the Administrative Tribunal, which is the past 10 years," says Standard Bank’s highest audit body in Mozambique, and head of oil, gas and renewables, Simon the General Inspectorate of Finance. Ashby-Rudd. "Mozambique will probably be the next Qatar." The Bank also states “the indirect beneficiaries include the entire public Mozambique is rich in energy sources, administration through greater public with an abundance of gas, coal and sector efficiency; and the entire hydro. The Mozambique government is Mozambican population (especially moving quickly in balancing the need of women, youth, and rural communities) multinationals investing in the country’s through the promotion of inclusive resource sector, the international donor growth, improved natural resource community and the population of Mozambique. In order to monetise the

coal and gas finds, massive investment India’s Bharat Petroleum sets aside 2 in infrastructure is needed, such as in billion U.S. Dollars for Mozambique pipelines, power capacity, railway and oil project port facilities, with the biggest investment in key gas infrastructure Indian oil multinational Bharat Petroleum estimated at approximately 40 billion Corp. Ltd (BPCL) says it will reserve U.S. Dollars split between the upstream over 2 billion U.S. Dollars for oil and gas and mid-stream sector. exploration in Mozambique in the next four years. The new tax laws will usher in some major changes to the hydrocarbon and “The investment had been planned so minerals sectors as the Government of that assets in Mozambique and Brazil Mozambique takes strategic steps to could enter the production phase at the ensure the infrastructure master plans end of the 2019 financial year,” said the are realised sooner rather than later. BPCL group chairman S. Varadarajan.

Major changes in the tax regime will Between 2010 to 2012, over 4 200 include new rules for tax offsetting, billion cubic metres (150 trillion cubic Capital Gains Tax changes both in the feet) of natural gas reserves were tax application and charge, new rules in discovered in the Rocuma Basin, off the the depreciation of assets, new rules for coast the northern Cabo Delgado non-tax deductible activities including Province in Mozambique. Once the exclusion of failed projects and CSR developed, this could make activities, new windfall profit tax, Mozambique one of the largest changes that will affect existing producers of liquefied natural gas in the contracts and an overall reduction in world. Plans are therefore in place to available tax benefits. ensure production starts in 2018.

The tax changes will require major In 2004, South African company Sasol changes to foreign and local firms in the also started production of natural gas hydrocarbon and mineral sector in from the Temane gas field in the South Mozambique’s tax planning and will of Mozambique and in 2011 produced affect 2015 planning. about 3.8 billion cubic meters of natural gas. Sasol used the gas to power its Market Intelligence leaders AIE have South African chemical plants. organised a 1-day market briefing, which will take place in Johannesburg, Rubicon Resources to acquire South Africa, on 22 October 2014. The strategic partner market briefing will provide much needed insight into the new Tax Rubicon Resources is set to purchase Framework for the resource sector, its Mozambique-based alliance partner, further details on participating in the PacMoz. market briefing can be accessed via www.africaninfex.com or call: 081 777 An agreement has been reached to 0028. purchase an initial 60% of PacMoz, and a 2-year call option over the 40% balance.

PacMoz is well placed to participate in PacMoz will also offer Rubicon access the developing mining, oil and gas to cash flow through PacMoz's existing industries in Mozambique and to identify project services and logistics business. resource project acquisition opportunities. As consideration for the acquisition, Rubicon will pay the vendor 50 000 U.S. Notably, Richard Carcenac, former BHP Dollars cash and will issue 30 million Billiton mine manager of South Africa ordinary shares and 60 million Coal and Worsley Bauxite, is to manage performance shares, subject to Rubicon's Mozambique operations. Shareholders’ approval.

PacMoz is a private Mozambique The performance shares will vest in registered company with operations in accordance with the certain milestones. identification and assessment of resource development projects, as well RBR is presently valued at 4 million U.S. as exploration and project services and Dollars. logistics and administration support. ENH sells 20% stake in Pemba gas It is in advanced discussions with a terminal global business services company specialising in flexible deployment of Mozambique’s national oil and gas professionals in field of industries. company ENH plans to sell a 20% stake in the Pemba gas terminal, in the north The identity of this company cannot be of the country, the president of ENL disclosed at this time due to Logistics, a subsidiary of ENH, said on confidentiality restrictions, but will be Thursday (18 September) in Maputo. disclosed if and when a binding agreement is executed. Eduardo Naiene said the company has mandated the Banco Nacional de PacMoz is negotiating to enter into a Investimento (BNI) to lead the sale of joint venture with this company which 20% of the Pemba Integrated Logistics will provide project management, Centre, from where natural gas consulting, recruitment and labour-hire extracted in the Rovuma basin will be and whole-of-project life cycle services, exported by sea. primarily to the mining and oil and gas industries in Mozambique. The Pemba Integrated Logistics Centre, also known as the Pemba Logistics Execution of a binding agreement for Base, will enable exports of natural gas the establishment of the Joint Venture is produced in the district of Palma, 460 a condition precedent to Rubicon's kilometres away. investment in PacMoz. The facility, the first phase of which was Mozambique expects to receive foreign launched in August, includes a 300 investments totalling around 10 billion metre pier, facilities to produce and U.S. Dollars over the next three years assemble undersea equipment, access with the annual approval of around 300 roads and storage areas for equipment projects. and mechanical workshops, to support

the oil and gas industry in the region, “The process of finding a private partner with an estimated initial investment of for ENHIL was criticised by 145 million U.S. Dollars. Mozambique’s Centre for Public Integrity for being rushed and opaque. Construction of the first phase of the The state oil company said that running Pemba Logistics Base is due to be a public tender would have taken too completed in 2016, two years before the long and delayed development of the start of production of the gas extracted gas field.” from the Rovuma basin. ENH looks for an apprentice role in The Logistics Base was handed over as Mozambique LNG marketing a concession by the Mozambican government for 30 years to Portos de ENH has stated that it wants to take a Cabo Delgado (PCD), a partnership more active role in marketing gas from between ENH and Mozambican port Mozambique’s huge offshore gas fields. and rail manager CFM. "We are saying Mozambique should be To implement the project PCD sub- involved. What we want to see is not contracted the facility to ENHILS, made only the operator marketing the gas. up of ENH Logistics, with 51%, and We, as ENH, should be involved in it as Nigeria’s Orlean Invest, with 49%. a partner in the process so that we learn… how to bring our gas to market," However, on Wednesday (24 ENH Commercial Director Tavares September) alternative suggested that Martinho said. BNI was seeking domestic buyers for a 10% stake in a logistics terminal for the He pointed to the marketing gas industry at Pemba. arrangement for Papua New Guinea’s new LNG export plant. LNG from the 6.9 The statement continued “ENH million ton per annum (mtpa) project has Logistics, a unit of the state oil company been jointly marketed, with operator set up to build the infrastructure needed ExxonMobil acting as marketing to bring the gas ashore, is selling one representative on behalf of the PNG fifth of its 50% stake in the Pemba LNG stakeholders. terminal, estimated to require 150 million U.S. Dollars to construct. "Maybe there is not one person from PNG inside ExxonMobil. Why? What we “The stake will be made available only need is somebody from ENH within to Mozambican investors, in keeping Anadarko. Somebody should be there with a government objective to keep as watching what Anadarko is doing, so much ownership of the country’s natural that we are able to advise [our] resources wealth in local hands as government that the gas has been possible. The question of foreign selling in a good way – for the operator ownership has been prominent in and the country." campaigns for presidential and parliamentary elections due next month. Martinho also sought to ease industry concerns over Mozambique’s amended petroleum bill that is likely to be signed

into law by President Armando Guebuza The report assumes a flat 12 U.S. before he leaves office next month. Dollars/MMBtu free-on-board price forecast for the project’s 30-year New provisions in the petroleum law will lifespan up to 2044. That assumption see ENH take a more active role in the raised eyebrows among industry gas industry, a move that has raised watchers, who consider it optimistically fears that operators could be side-lined competitive, given Mozambique LNG’s to some extent. greenfield status and the projected cost of North American exports. "From my Article 36 in particular has drawn perspective, as I see the environment scrutiny, as it states ENH will "assume [and] the quantity of LNG in 2020, the leadership of the marketing and maybe this price could be a little bit less commercialisation of [oil and gas] than that," Martinho said. products". But Martinho played down fears, saying "I think that is not a matter "A study is a study. Reality is reality. for worry", and highlighting ENH’s desire The authors… put down that the price for more participation in the marketing may be, or should be, 12 U.S. process. Dollars/MMBtu. But you see the outlook and propensity for LNG production ENH already participates in worldwide… every project’s price will not Mozambique’s upstream sector and has reach that 12 U.S. Dollars," said the option to take up to a 25% stake in Martinho. oil and gas licences (although it only has a 10% stake in Offshore Area 4 and a Paulo Scaroni, chief executive of Italian 15% stake in Offshore Area 1). The oil major ENI, told CERAWeek government has also indicated it will delegates in Houston earlier this year control domestic market sales – with the that the project would break even at 9 state arranging sales agreements and U.S. Dollars/MMBtu, which gives the setting the domestic gas price. sellers – both of whom offer some element of Henry Hub-indexation in their Mozambique’s Gas Master Plan for the contracts – room to be flexible on how project envisages six trains with their contracts are priced. aggregate capacity of 30 mtpa by 2022 under a best-case scenario, and up to Asked if he was confident all six trains 50 mtpa from 10 trains by 2026. would be developed, Martinho said at least two onshore trains could South Africa-based Standard Bank materialise by 2020 along with a floating released a macroeconomic study of LNG facility, based on the project’s Anadarko’s planned Mozambique LNG location and the market environment. project nearly two months ago. The report estimates six trains would swell FEED studies for Anadarko’s Offshore Mozambique’s economy by 39 billion Area 1 have already finished, with U.S. Dollars by 2035 – more than participants waiting on negotiations with double its 2013 GDP of 15.32 billion the government for an FID; FEED for U.S. Dollars. ENI’s Area 4 may be completed by the middle of 2015, according to Martinho.

Martinho said he did not see many Mozambique and Brazil assets by fiscal obstacles to development at present, 2019, said S. Varadarajan, chairman but identified the massive financing and managing director of BPCL, in an requirements for monetising resources interview on the side-lines of a press in the Rovuma Basin as the biggest briefing held late Thursday (18 challenge. "I think only project financing September) in Mumbai. will be something that we can exercise," he said. Exports of liquefied natural gas (LNG) from the Mozambique blocks, which He acknowledged strenuous efforts largely hold natural gas, will start from would be required to develop the fiscal 2019. BPCL, through its wholly necessary institutions and regulatory owned subsidiary Bharat frameworks to manage huge inflow of PetroResources Ltd (BPRL), owns oil capital if a startup date of 2019 is to be and gas assets in Brazil, Mozambique, met. Indonesia and Australia. “These two assets (in Brazil and Mozambique) are "It is something that we have to work on. where the major chunk of investments We need to develop our banks, to are planned in the coming few years,” manage all these efforts in terms of said D. Rajkumar, managing director financing that will come." But he noted and chief executive officer of BPRL. work was progressing on that front. "In terms of financial institutions, our In Mozambique, BPCL holds a 10% national bank is working on that and it is stake in a gas block that is operated by very close with the project. I think it will US-based Anadarko Petroleum Corp. not be a big problem." Analysts expect the assets in Mozambique to help BPCL reshape BPCL to invest 2.1 billion U.S. Dollars itself into an integrated oil and gas in Mozambique and Brazil company once they become operational. Bharat Petroleum Corp. Ltd (BPCL) plans to invest Rs.13 000 crore (roughly The natural gas reserves in the 2.1 billion U.S. Dollars) in energy Mozambique block have been exploration and production in ascertained at 50-70 trillion cubic feet Mozambique and Brazil over the next (tcf) by its operator Anadarko, which is four years—its biggest investment in the almost 10 times the reserves of so-called upstream sector. Reliance Industries Ltd’s D6 block in the Krishna-Godavari basin. BPCL’s share The planned investment is twice the of reserves is at 5-7 tcf, equivalent to amount the company has spent in the size of the D6 block in India. exploration and production activity in the last 10 years and is part of the total Rajkumar said BPRL will be investing up capital expenditure of Rs.35 000 crore it to Rs.10 000 crore as part of its share has chalked out for the next four years. towards a 10 mtpa LNG terminal project at Mozambique. Off-take agreements for The investment has been planned two-thirds output have already been keeping in mind the target of signed with Asian companies, he added. commencing production from the

The promising exploration and booster pumps. Drag reducers, which production assets in Mozambique and are also known as drag reducing agents Brazil put BPCL on a better footing or flow improvers, reduce frictional compared with its peers such as Indian pressure during fluid flow in a pipeline. Oil Corp. Ltd (IOCL) and Hindustan Petroleum Corp. Ltd (HPCL), Ashish Using drag reducers reduces turbulence Jagnani, an analyst with UBS inside a pipeline and therefore allows Investment Research, wrote in a 08 the oil to flow more efficiently using the September report. same amount of energy or decreased pressure drop for the same flow rate of Mozambique snubs Zimbabwe fluid in pipelines. Drag reducers allow for oil to be pumped through at lower Mozambique has snubbed Zimbabwe's pressures, saving energy and money. proposal to construct a second petroleum pipeline, a government official The Feruka pipeline pumps 6.5 million has revealed, saying the move has litres of fuel per day from Mozambique undermined plans to augment the to Zimbabwe but it has a maximum existing pipeline which no longer has the capacity of eight million litres per day. capacity to adequately supply fuel into The 408 kilometre pipeline, built in 1966, the country. The plan was to construct a stretches from Beira in Mozambique to second pipeline from Savanna, 50 Harare through the Feruka Oil Refinery kilometres north of Beira, Mozambique, outside Mutare. to Zimbabwe. The Zimbabwe government, through the The proposed pipeline would run National Oil Infrastructure Company, parallel to the Feruka petroleum pipeline owns 21 kilometres of the Feruka from the Beira fuel depot to Harare. The pipeline, while Mozambique, through the proposed pipeline was expected to carry Companhiado De Pipeline Mozambique- about 500 million litres of fuel per Zimbabwe (CPM-Z), controls the rest. month. Permanent secretary in the The government last year introduced a Zimbabwean Ministry of Energy and 0.04 ₵ per litre levy on fuel importers Power Development, Partson Mbiriri, using road transport to bring fuel into the disclosed that Zimbabwe could not take country in an effort to force them to use unilateral action on the pipeline project. the Beira-Feruka pipeline.

"Whereas this ministry (Energy and Haulage trucks, despite the lower costs Power Development) has engaged our of using the pipeline are still transporting Mozambique counterparts on the about 35% of fuel. Industry players said second pipeline, we await a formal while the pipeline was a cheaper mode response from Mozambique," said of transporting fuel, the industry is so Mbiriri. segmented that it would be difficult to co-ordinate the procurement of "Zimbabwe may not take unilateral petroleum products in bulk in order to action on this project." Mbiriri, however, justify the use of the pipeline. said the capacity of the existing pipeline has increased by 40% following the It costs 0.08₵ a litre to transport fuel by introduction of drag reducers and pipeline from Beira to Msasa in Harare

while the haulage companies charge are, therefore, struggling in the current 0.09₵ a litre over the same distance. In depressed markets. March this year, Energy and Power Development Minister, Dzikamai Jindal Steel & Power is, therefore, Mavhaire, during a tour of Feruka Oil adopting “a wait and watch approach” to Refinery, said government would initiate the expansion of its Chirodzi coal mine, studies on the construction of the in Mozambique’s Tete province. second pipeline. The company aims to stabilise the He said: "We are already pursuing existing mining operation by recovering bilateral procedures with Mozambique coking coal from the filter cake with the with a view of coming up with a second addition of a froth flotation circuit. It also pipeline." Mavhaire said a number of plans to explore local markets for investors had already put forward opportunities to sell its thermal coal and proposals for the construction of the is implementing several initiatives to second pipeline. improve operational efficiency.

Mozambique coal industry ‘reeling’ “Jindal Africa is also discussing the from price decrease possibility of establishing a power plant that will use the lower-grade coal being While the South African coal mining produced at Chirodzi,” says Kumar. industry remains steady, primarily owing to strong domestic demand from State- In April, Jindal received environmental- owned power utility Eskom, the impact-assessment approvals for the Mozambique coal industry is “reeling” construction of a 350 MW power plant in from decreased global coal prices, says the country. multinational Indian mining, steel and power conglomerate Jindal Steel & “The coal price necessitates our Power subsidiary Jindal Africa. focusing on being cost efficient to ensure the viability of operations, and “With global contraction in the demand our securing the necessary allocation of for coking coal, steelmakers have existing infrastructure to accommodate resorted to Australian coking coal, which the transport of product. This involves still has a much better quality than obtaining support from Mozambique Mozambique coal,” said Jindal Africa parastatals to reduce transport costs,” CEO Ashish Kumar. he emphasises.

He adds that, as logistics remains a Jindal is also investing substantially in significant challenge, owing to logistics solutions to help improve underdeveloped rail and port transport of the commodity. It infrastructure in Mozambique, producers commissioned the project’s railway are spending significantly more on infrastructure, which includes Jindal’s transporting and exporting coal, locomotives and wagons, a 220 KV/ 33 compared with the costs they would KV substation, as well as a 22 kilometre have incurred in South Africa or water pipeline, in the 2013/14 financial Australia. Mozambique’s coal operations year.

Nevertheless, Kumar believes that an a result, only produced about 900 000 t increase in the coal price is on the of coal. horizon. “That would reposition Southern Africa as a major hub of the “Although the steep drop in the global global coal market,” he says. coal price impacted negatively on the mine’s profitability, our customer base Kumar told reporters that the company continued to increase and more is also focusing on maintaining avenues for export were also production levels at its Kiepersol established,” says Kumar. colliery, near Piet Retief, in Mpumalanga. The colliery has a Sales from the colliery for last year production capacity of 1.4 million tons a totalled about 600 000 t of washed coal, year. of which 45% was supplied to the domestic market, while the rest was In March, Jindal Mining South Africa exported. (SA) took over the operation and maintenance of the coal wash plant, as Kumar notes that demand for anthracite, it would not only lead to a more reliable mainly from ferroalloy producers, plant operation but also drive further continues to remain strong. “The export cost efficiencies. markets have shown more potential lately, as political tension in Russia and Jindal Mining SA has also taken over Ukraine have blocked off much of the the mining of two adits, with a contractor anthracite supply from that region,” he mining in another. says.

“We have also opened up a new adit, However, supply has not remained as where the contractor started mining this strong as demand, as some local miners month. “This should increase production face operational issues. They are levels to 100 000 t/m from next month,” struggling to maintain consistent says Kumar. production levels, while new projects are also missing their timelines, largely He adds that equipment has been owing to a lack of funds, concludes ordered to open up a fifth adit in March Kumar. 2015. This will result in the company producing enough coal to take Coal investors warned that Chinese advantage of the wash plant’s full demand will peak in 2016 and may capacity. cripple the industry

“We are focusing on stabilising Chinese demand for thermal coal could production,” Kumar notes, emphasising peak as soon as 2016, having a that Jindal aims to do more than 50% of potentially crippling impact on the global its mining in-house, which will go a long coal industry. way towards achieving that. Coal companies are already facing Last year, in its fifth year of operation, challenging times, as the industry looks the colliery faced several issues and, as to cheaper and cleaner alternatives. Future demand for coal may slacken,

further dampening prices. All of these loss-making power and distribution factors led to the Carbon Tracker sector". Initiative concluding in a new report that "coal is a sinking ship". The environmental upside is that Chinese carbon dioxide emissions could The report is issued under the auspices peak before 2020, since they have of raising awareness to the financial historically tracked coal consumption so risks faced by investors in the coal closely. industry. The sector needs 112 billion U.S. Dollars of investment in coal mine "The world's coal industry is playing expansion and development to sustain music chairs with demand, every time itself, CTI said, and "the high costs new the music stops another piece of the mines are not economic at today's market is being taken away," said prices and are unlikely to generate James Leaton, research director at CTI. returns for investors in the future". At the crux of the think tank's research is The authors drew on research from the the finding that demand for the Institute of Economics and Financial seaborne coal market could fall Analysis (IEEFA), which found China's drastically over the next 20 years, to 850 demand for coal will peak in 2016 and million tons per year, which would steadily decline thereafter. The country require a breakeven price of 75 U.S. may become a net exporter but it's Dollars per ton. Mines with costs higher unlikely there will be any other country than this will struggle to attract in a position to take up the lag in investors, or at least pay them the demand that would be left by China. desired rate of return.

"China currently represents around half There are numerous large coal facilities of the global thermal coal market and coming online in the future that would will be critical to the future levels of struggle to make the figures work in consumption and seaborne market such a low-demand scenario, CTI said, structure. Alongside the IEEFA low- including the Galilee Basin in Australia demand model, a number of and the Powder River Basin in the US. mainstream coal analysts from investment research houses [Deutsche Perhaps anticipating the shift, the likes Bank, Bernstein, Morningstar] expect of Rio Tinto and BHP Billiton have been Chinese coal demand peaking by 2016 shedding assets in Australia, or sooner," wrote the authors. Mozambique and South Africa, sometimes spinning them off into Coal exporters are increasingly pinning newcos, in an effort to manage the their hopes on India, especially given potential future cost. the sheer levels of investment required in their industry and infrastructure. But "Any investor should already be CTI warns the current price of electricity questioning whether high-cost thermal cannot support continued expensive production can turn a profit," the report imports of coal and that India's "weak reads. "This is an opportunity for active financial system cannot continue issuing shareholders to ensure diversified non-performing loans to help grow a

miners are limiting their exposure to comprises a spraying system at the losses in the thermal coal business. mine’s rail load out station. The system automatically sprays the coal in the rail The report has been released to cars with a chemical reagent – Nalco coincide with the Global Climate March DustBind technology – before it is campaign, which kicked off in cities transported to the port,” says Nalco around the world on Saturday (20 Africa mining industry technical September). consultant Jan Botha.

The timing is also important in the light DustBind technology is a biodegradable of the revelation from 19 September that encapsulating aid formulated to bind fine the world's population is set to grow particles on rail cars, stockpiles and quickly for the rest of the century, other materials, creating a bound crust despite the 20-year consensus that it on a mineral surface to reduce dust would peak in and around 2050 at about created by handling or windy conditions. nine billion people. It is easily diluted and applied, and reduces wind and water erosion on "The significance of the new work is that stockpiles. it provides greater certainty. Specifically, it is highly likely that, given current DustBind technology also resists re- policies, the world population will be emulsification once it is dry. It also has a between 40-75% larger than today in flexible bond that resists break-up once the lifetime of many of today's children applied and has low equipment and will still be growing at that point," maintenance costs. said Simon Ross of the Population Matters think tank. Botha notes a growing awareness within the mining industry about the financial The implications for the environment are and environmental impact of coal stark: scientists were already wondering dusting, and stresses that DustBind how the planet would support nine technology not only reduces the billion people; the fact that the world's environmental impact incurred when fine population may be set to hit 11 billion by coal is lost to prolonged wind exposure, the end of the century presents a new but also curbs product waste and, and terrifying quandary. therefore, revenue losses, as fine coal is blended with coarse coal and exported Coal rail car topping system as coking or metallurgical coal, which commissioned in Mozambique has a high export value.

Water treatment and process services “It has become necessary for the mining company Nalco Africa, an Ecolab industry to limit these losses,” he says, company, has completed the first stressing that wind and distance installation of its rail car topping system travelled may account for 0.5% of coal at a coal mine in Mozambique’s Tete loss, which means that if a mining province. company transports 100 000 tons of coal, about 500 tons can be lost during “The rail car topping system, which was transportation alone. completed and commissioned in August,

Botha adds that DustBind technology "The consistent price increases has to be able to withstand prolonged achieved in our emerald business movement and wind exposure over demonstrate our ongoing commitment to extensive distances, as coal trains in supporting the competitiveness of Southern Africa travel to the Beira and Zambian emeralds on the international Maputo ports, in Mozambique, or to the market," he added. Richards Bay Coal Terminal, in South Africa. The product was, therefore, In February 2014, higher quality tested in wind tunnels over distances of gemstones attained an average price of up to 600 kilometres and over varying 59.31 U.S. Dollars per carat, a 10% time frames to ensure the least amount increase over the previous higher quality of coal dusting and fine coal product auction. In November 2013, its lower losses. quality gemstones sold for an average price of 3.32 U.S. Dollars per carat, DustBind technology revealed a greater which was a 27% increase on the than 90% reduction in fine coal losses, previous highest price per carat according to research data. achieved at a lower quality auction, said Gemfields. Gemfields trebles revenue and swings to pretax profit "While Gemfields today enjoys an unrivalled presence in the international On Monday (22 September) Gemfields coloured gemstone industry, the PLC said that it trebled its revenue and opportunity for sustained growth is swung to a pre-tax profit in its recent significant. We have built a successful financial year, due to the addition of its emerald business with our world class producing ruby project in Mozambique Kagem mine in Zambia and the addition and higher gemstone prices. of rubies from Mozambique serves to amplify our position as the leading The company's revenue trebled to 160.1 supplier of responsibly sourced coloured million U.S. Dollars for the full year gemstones," said Chairman Graham ended 30 June, from 48.4 million U.S. Mascall. Dollars in the 2013 financial year, swinging it to a pre-tax profit of 36.3 The company said it is looking to million U.S. Dollars from a 20.1 million increase production at its Kagem mine U.S. Dollar loss in the previous year. It to 25-30 million carats of emerald and generated 110 million U.S. Dollars from beryl production after a 32.7% reduction emerald and beryl sales during the year. to 20.2 million carats of emerald and beryl in the 2014 financial year, from 30 "In addition to record revenues from our million carats in 2013. The reduction is emerald business, the year saw due to high rainfall and delays, said Gemfields hold its inaugural ruby Gemfields. auction of Mozambican rubies, generating sales of 33.5 million U.S. It aims to produce 8 million carats of Dollars from 1.82 million carats sold," ruby and corundum from its Montepuez said Chief Executive Ian Harebottle. ruby deposit in Mozambique, which produced 6.5 million carats of ruby and corundum in 2014, and hold a minimum

of three emerald and two ruby auctions co-operation and ease the delivery of to expand its trading footprint over the coal exports through harbours to India next year. It also continues to evaluate a and Brazil. number of gemstone acquisition opportunities, it said. Government-owned companies from the three countries agreed to manage a "During the year Gemfields has joint-operating centre from Maputo, the continued to deliver on its strategy of Mozambique capital, Transnet said on shaping and consolidating the coloured Monday (22 September). gemstone industry, demonstrated convincingly by the addition of a The entity will oversee the freight-rail significant new revenue stream from our route from Maputo through Swaziland to ruby operations in Mozambique," said Richards Bay Coal Terminal, north of Mascall. Durban in South Africa.

Iluka Resources offers 780 million “The Maputo corridor is set to grow U.S. Dollars for heavy minerals mine rapidly,” Johannesburg-based Transnet in Mozambique said.

Iluka Resources has submitted an offer “A double digit percentage cargo growth of 780 million U.S. Dollars for the is expected at the Maputo ports over the purchase of Moma mine from Kenmare next three years.” Resources. While South Africa is rolling out a 312 The Moma mine in Nampula has a life billion Rand infrastructure-development expectancy exceeding 100 years and program to improve its rail network, currently produces more than 900 tons Mozambique is struggling with aging of ore extracted from heavy sands, equipment. particularly ilmenite and zircon. The southeast African country has a 17 "The potential transaction involving billion U.S. Dollar (190 billion Rand) Kenmare Resources is compatible with pipeline of projects to improve ports and the strategy of the Iluka Resources rail infrastructure, according to the mineral sands exploration," said Iluka. Transport Ministry.

In August Kenmare Resources “It is one way of unlocking the backlog,” announced an operating loss of 17.9 Thabi Leoka, an economist at million U.S. Dollars in the first half, after Renaissance BJM Securities, said in an a profit of 6.9 million U.S. Dollars in the interview before the announcement. same period of 2013. “You need co-ordination between Transnet agrees to a deal with governments, which is not happening as Mozambique and Swaziland quickly as private operators would expect.” Transnet, South Africa’s state-owned rail operator, agreed to a deal with Transnet, Caminhos de Ferro de Mozambique and Swaziland to boost rail Mocambique, Swaziland Railway and

the Maputo Port Development which still receives the majority of its Corporation are the four companies cargo flows from road hauliers. included in the agreement. CFM chairperson Dr Victor Pedro With 3 billion U.S. Dollar plan, Gomes said the bulk of the proposed Mozambique aims to extract regional investment would be directed towards port, rail integration benefits the purchase of new locomotives and wagons, with about 600 million U.S. The Mozambican port and rail Dollars to be used to upgrade and repair authorities plan to invest around 3 billion infrastructure. U.S. Dollars in the coming few years to raise yearly throughput at the Maputo The MPDC, which is a private port to between 40 million and 50 million concessionaire that includes South tons by 2020 and to migrate additional Africa’s Grindrod and DP World as cargo from road to rail. leading shareholders, handled 17 million tons in 2013 and volumes were Speaking at the inauguration of the tri- expected to rise to over 19 million tons national Maputo Corridor Joint this year. Operations Centre (JOC), involving the Maputo Port Development Corporation But with only about 40% of its freight (MPDC), as well as railway operators delivered by rail, MPDC and CFM had from Mozambique, South Africa and developed a common development path Swaziland, MPDC CEO Osorio Sales in a bid to align the port’s expansion Lucas indicated that the port investment with proposed rail investments. would be directed towards further dredging and the development of three The bulk of the volumes moving through new quays. the port were considered ‘rail friendly’, with commodities handled including The port was recently dredged to a magnetite, coal, chrome ore and depth of 11 metres and the new ferrochrome, from South Africa, and campaign would increase the port’s iron-ore and sugar, from Swaziland. depth to 14 metres, allowing it to handle larger cargo vessels. Mozambique’s Transport and Communications Minister Gabriel A tender would be issued in the coming Muthisse also appealed for greater co- months to secure private dredging operation between rail and port expertise, with Transnet’s newest operators across Southern Africa, dredger, the Italeni, expected to arrive in arguing that competitiveness, rather Maputo this week to conduct than narrow nationalism, should guide maintenance dredging. future investment decisions.

In parallel, railways utility Caminhos de He argued that the most competitive Ferro de Moçambique (CFM) planned to regional transport solutions should be invest around 2 billion U.S. Dollars into promoted and pursued so as to lower new infrastructure and rolling stock over the cost of transport for regional the same period to increase rail’s exporters and importers. Muthisse made contribution to cargo flows at the port, the case, for instance, for an increase in

the export of Mozambican fruit through World Bank finances fishing in the Port of Durban and for more South Mozambique African coal to be exported through Maputo. The World Bank is providing Mozambique with 57.9 million U.S. He also urged other countries to follow Dollars to increase fishing production in the lead of the Maputo Corridor Port the country over the next six years. JOC, which was framed as a practical and successful example of regional The World Bank funding, which involves integration. the French Development Agency (AFD), is part of the SWIOFish programme In operation since 2013, the JOC, which (“South West Indian Ocean Fisheries”) co-ordinates the operations of Transnet underway in the southwest Indian Freight Rail, CFM, Swaziland Railway Ocean. and the MPDC, has facilitated a material improvement in rail and port turnaround The funding will be directed to times. increasing fisheries productivity, job creation through targeted interventions Train dwell times fell by 24% in to boost small producers and drive Komatipoort, on the South African side economic growth and job creation of the border, while waiting times at the through fishing and its associated value Maputo harbour fell 57%. Magnetite chain. exports from South Africa increased from an average of 10 trains a week to Other components of the programme 18 trains and the turnaround time in are related to the refurbishment or Maputo fell 47%, from 118 hours to 62 modernisation of fishing ports, landing hours. sites, fish markets, laboratories and research facilities, the Ministry of Transnet CEO Brian Molefe said there Fisheries said. was potential to increase efficiencies further, saying that the JOC was playing In late August Mozambique, Tanzania an important role in facilitating a more and Kenya signed the Maputo seamless trade experience. Declaration, an instrument establishing minimum terms and conditions for The utility was working on other cross- fisheries agreements in the southwest border operational partnerships, Indian Ocean, with a focus on tuna including one along the so-called North- fishing. South Corridor with Zimbabwe, Zambia and the Democratic Republic of Congo, Mozambique takes delivery of tuna with a hub in Bulawayo. boats after donor criticism

Another JOC had been established in Mozambique has begun taking delivery Botswana and Molefe described the co- of boats for the state-owned tuna-fishing operative model as an example of the company it set up last year, which was benefits of regional integration, adding funded by 850 million U.S. Dollars in that it could have continent-wide bonds, a transaction that raised donor application. concern.

Empresa Mocambicana de Atum SA, or Some donors threatened to delay EMATUM, was set up in August last budget aid over the deal, Anne Fruhauf, year. Credit Suisse Group AG (CSGN) an analyst for New York-based Teneo, and VTB Capital Plc financed its said last year. purchase of tuna boats, then packaged the debt into bonds that they sold to “The company appears to be evolving investors. from phantom to operational entity,” she said. “Donor relations are cool but not in “Five vessels have been delivered crisis.” already,” Cristina Matavele, executive manager for Maputo-based EMATUM, Mozambique’s long-term credit rating said in a September e-mailed response was cut in February by Standard & to questions. The company plans to Poor’s, partly because of the lack of harvest 650 metric tons of fish during transparency about the bond sale. the fishing season that starts next month, she said. Angola and Mozambique facilitate granting diplomatic and ordinary The Mozambican company is paying visas 200 million Euros (257 million U.S. Dollars) for 24 tuna boats and six patrol On Sunday (21 September) Angola and vessels from Cherbourg, France-based Mozambique signed two agreements in Constructions Mécaniques de New York, one for visa waivers for Normandie SA, known as CMN, French holders of diplomatic passports and Foreign Trade Ministry spokeswoman another to facilitate granting visas on Perrine Duglet said last year. The fleet ordinary passports. also includes anti-piracy patrol boats, according to the French ministry. At the end, the Angolan Foreign minister, Georges Chikoti recalled that EMATUM borrowed 500 million U.S. on a recent visit to Mozambique he had Dollars from Credit Suisse and 350 arranged with his Mozambican million U.S. Dollars from Russia’s VTB counterpart, Oldemiro Baloi, to meet in Capital. Moody’s Investors Service rated New York to finalise and sign the the loan participation notes B1, four agreements. levels below investment grade. The minister also said that other “The debt will be repaid in seven years agreements would be signed in the starting from next year according to the future, one relating to the use of loan agreement,” Matavele said. property and the other on Mozambique’s debt to Angola. The country’s main donors, known as the Program Aid Partners, are the World The foreign ministers of the two Bank, the African Development Bank, countries are in New York to attend the the European Union, Austria, Belgium, 69th session of the United Nations Canada, Denmark, Finland, France, General Assembly, from 22 September Germany, Ireland, Italy, Netherlands, to 03 October. Norway, Portugal, Spain, Sweden, Switzerland, and the United Kingdom.

Mozambique engages Botswana “The government recently approved a agents to boost tourism strategy which will only allow tourism investment in some areas. It will be put Over the past weekend (20 to 21 into use soon. This is part of the September) a number of Botswana country’s efforts to turn the country into travel consultants visited Maputo in a a tourism powerhouse within the next bid to build relations with hotels and tour decade,” he said. operators in the country. The Mozambique government is also MTA marketing manager, Jeremias drawing a strategy devoted to creating a Manussa, said that Mozambique would partnership between the private sector continue engaging tourism players in and government, in the development of other countries to market the country. the tourism sector. Tourism contributes slightly above five percent to “We are trying to resuscitate the Mozambique’s economy. country’s tourism to be ranked among the best in Africa. One way of doing it is Manussa added that the country is also building strong relationships with improving its infrastructure in a bid to tourism players from other countries position itself as one of the tourism hubs among them Botswana so that they on the African continent. “We recently market us to tourists,” he said. completed a new state-of-the-art airport in the Nampula province as part of the He further said travel agents in country’s plans to boost the tourism Botswana deal with a lot of leisure and industry. Good infrastructure is critical if corporate tourists, adding that he wants we are to take our tourism industry to them to market the country to potential another level in the country,” he said. investors. Reports suggest that most roads around Commercial and marketing manager at Maputo are being revamped following TD Hotels Diogo Gomes said they years of war and political instability. invited travel agents to show them what There is also a lot of construction of the country has to offer. commercial buildings in and around Maputo and Manussa said the “We wanted to afford them an developments would also support opportunity to see what exactly we offer tourism growth in the country. so that when they market us, they are well accustomed with our products and Manussa said that the country has over also give us feedback as to where we 46 000 beds spread across hundreds of should improve,” said Gomes. hotels around the country, which will support tourism growth. Manussa further said that the country is currently putting in place a few “The available accommodation can measures to position itself as a tourism support millions of tourists coming into destination of choice on the African the country. I however acknowledge that continent. our hotels will have to revamp some of the facilities within the next years. In fact

some have already started renovations,” cater to pent-up demand for he said. international quality office space.

Mozambique receives approximately As the capital city of Mozambique, two million tourists annually. Manussa Maputo is expected to reap the growth said the number could double in the benefit of the country’s robust economy, next decade with vigorous marketing buoyed by foreign investment and and improvement of infrastructure. emerging domestic consumption, growth in the extracting sector and recent Minor Hotels continues Mozambique discovery of a substantial offshore expansion natural gas reserve.

Minor Hotel Group has further expanded In line with its continued growth strategy its presence in Mozambique through a for Africa, Minor Hotel Group launched significant hotel and mixed use its first property, Anantara Bazaruto investment in Maputo, in addition to Island Resort & Spa in Mozambique, in increasing its hotel portfolio with the November 2013, and has recently rebranding of existing assets in the rebranded two properties which were country to its Anantara and AVANI part of a previous investment brands. partnership with Rani Investments in April 2014. Minor Hotel Group has invested approximately 101 million U.S. Dollars Representing the first AVANI on the to acquire 49% of a hotel and mixed-use African continent, AVANI Pemba Beach property project in Maputo in a joint Hotel & Spa provides a prime location in venture with Rani Investment. the heart of Pemba for business guests and also attracts leisure guests as a The hotel and mixed-use development gateway to the Niassa National Reserve consists of the existing 154-key and spectacular local diving sites. Radisson Blu Hotel, together with a 187- key residential tower and a 21-storey The hotel is situated in the country’s far office tower of approximately 20 900 northern province of Cabo Delgado, and square metres, both of which are under offers 185 guest rooms, suites, villas construction. and apartments. Pemba Airport is accessed from Johannesburg, Maputo, The project is well located in prime Nairobi and Dar as Salaam. Maputo CBD, facing the renowned Maputo Bay. Dillip Rajakarier, chief executive of Minor Hotel Group, stated: “Minor Hotel The residential project is expected to be Group’s continued investment with Rani completed by the end of 2015, the demonstrates absolute confidence in majority of which will be retained as our strategic partnership, as well as in rental units. Mozambique’s growth prospects.

The office project is also expected to be “We are delighted to launch the very first completed by the end of 2015 and will AVANI branded hotel in Africa and to grow our luxury Anantara brand, and

with our added presence in Maputo, The company plans on developing 15 Minor Hotel Group now has investments strip malls throughout the country in the from the north all the way to the south of coming 5 years. The strategy of Pylos Mozambique. Mozambique focuses on the development of the provinces as its first “Minor Hotel Group’s expertise in the investment destination. hotel and real estate industry, combined with Rani’s business expertise and On Thursday (18 September) the network in Mozambique, will help company held the laying out of the first ensure the effective execution of these stone ceremony of its first strip mall in properties and new developments.” the city of Tete, in the neighbourhood of Chingodzi. The President of Tete City Malawian Airlines to fly to Nampula Council, who showed his enthusiasm for and Tete this investment, which is the first of its kind in Tete after many years of Malawian Airlines has announced that in promises that never materialised, November it will introduce scheduled attended this ceremony. services to Mozambique. "We believe that by constructing 15 strip The company will fly twice a week to the malls across the country, we will bring northern city of Nampula, and three growth to all the provinces, contributing times a week to the western city of Tete. to the economic and social development The flights to Tete will also stop at the of Mozambique by creating new Zimbabwean capital Harare. business and job opportunities for the Mozambicans", said Jacky d´Almeida, Malawian Airlines is 51% owned by the Operations Director of Pylos government and 49% owned by Mozambique. Ethiopian Airlines, who runs the company under a management contract. The construction of the second strip mall There is already a daily Ethiopian will start later this year in the province of Airlines flight from Addis Ababa to Nampula which will be followed, also in Maputo. 2014, by a third unit in the province of Inhambane. The company's fleet consists of one Boeing 737-800 and one Bombardier "Pylos has defined an investment Dash 8. strategy using own equity, which will give us more flexibility in decision Pylos Mozambique plans to develop making and more agility in the 15 strip malls in coming five years realisation of the investments. The total investment of the strip mall strategy is Pylos Mozambique, a subsidiary of the estimated to be more than 150 million Belgian real estate developer Pylos, U.S. Dollars. Our objective is initiated its operations in Mozambique in aspirational and we believe in the July 2013 with offices in the success of this project because we Mozambican capital Maputo. believe in the success of Mozambique", states José Carlos Pinheiro, CEO of Pylos Mozambique.

d´Almeida added that "the strip malls of Health Minister Alexandre Manguele, Pylos are targeted towards the wider Dutch ambassador Frederique de Man, Mozambican public and intend to meet and the director of the French the demand for formal retail structures, Development Agency (AFD), Virginie offering quality products at accessible Dago, signed the memorandum of prices. The stores that will open in the understanding. malls are widely known and will fulfil the market requirements. The Beira General Hospital, intended to take the pressure off Beira Central We know that we will become the new Hospital, will cost 12 million Euros, centre of the cities where we will be provided as a soft loan from the AFD. present." The new hospital will have capacity for 240 beds. "The objective of Pylos is to add value and quality to the retail market in The Marromeu district hospital, with 140 Mozambique and make our strip mall beds, will be financed with a Dutch grant brand recognised countrywide. Our of 11 million Euros. business is the development of retail centres, our mission is to really do it and Speaking immediately after signing the not only say we will do it, and our memorandum, Manguele said the two inspiration is to become the reference new hospitals are crucial and will play a for all those, who like us, believe and fundamental and strategic role in invest in Mozambique", Pinheiro improving health services. He added concluded. that the government has guaranteed the allocation of skilled staff, including Memorandum Signed for Two New specialist doctors, nurses and laboratory Hospitals and X-ray technicians.

Two new hospitals, costing 23 million De Man said that the new hospitals Euros (approximately 29.5 million U.S. should ease the current congestion of Dollars) will be built in the central Beira Central Hospital, and would also Mozambican province of Sofala by help train medical students. 2015, under a memorandum of understanding signed in Maputo on “After the end of this phase, the Tuesday (23 September) by the embassy will always be available to Mozambican, Dutch and French support, in a continuous and innovative governments. way, the use of hospital equipment”, she said. The agreement envisages the construction of a new general hospital in Dago added she was convinced that the the provincial capital, Beira, and a rural new health units “can have an important hospital in Marromeu district, on the impact on the access of the public to south bank of the Zambezi. Work on health services. We are working with the building both hospitals will begin in Ministry of Health to define the best way 2015, and should be concluded by of implementing hospital construction, 2017. responding to the needs of the population”.

Mozambique launches new car brand services will also be offered at stations in Tete, Beira and Nacala. The first Mozambican car brand "Matchedje" was officially launched on "The entry into Mozambique is a natural Tuesday (23 September) by Matchedge progression of the group's strategy, Motor, after a three-year implementation which focuses on strengthening its period, which was supported by the presence in Africa,” says CEO of Nors governments of Mozambique and Group Tomás Jervell. “Beyond a focus China. on Mozambique’s development where we see great possibilities for Auto Initially 30 000 vehicles will be Sueco in the future, this new operation assembled, including motorcycles, all- also seeks to extend outreach to our terrain automobiles and buses for customers who have activity in this passenger transportation. region of the African continent."

The company plans that over the 64 expats lose jobs in first week of second phase (2015-2016), production September capacity will reach 100 000 units, following upgrades in painting, welding A total of 64 employees of various and other processes. In the third phase foreign nationalities saw their (2017-2020) the factory is expected to employment contracts terminated in the produce 500 000 vehicles of all types, first week of this month, most of whom including the production of various kinds were working for companies based in of automobile accessories. the city of Maputo. This was higher than in the weeks of other months. "Matchedje Motor will also offer training in mechanical, chemical, electronics and Under current labour laws, the criteria automotive industries to Mozambicans,” for hiring foreign workers and the says Carlo Nizia, Director of Sales duration of their employment contracts Matchedje Motor. “This phase will bring remains highly regulated. The Ministry a profound change of life for the people of Labour continues to reject many of Mozambique, because, once applications for foreign employees, completed, it is expected that the annual claiming these skills can be sourced production will be about 150 billion U.S. within Mozambique. Dollars.” Articles 31 and 33 of the Labour Law Nors Group enters Mozambican stipulate that companies should market integrate national workers in various areas of greater technical, On Wednesday (24 September) the administrative or management Nors Auto Group inaugurated “Auto complexity, while hiring expatriates Sueco Moçambique”, a new distributor should be a last resort. But in some of Volvo trucks and buses. The team of cases, expatriates have been hired 22 employees is headquartered in without possessing even minimum Maputo, which will be the centre for the qualifications required by Mozambican company’s operations. Car maintenance law.

The General Inspectorate of Labour sensitive phase in the socialisation of (IGT) has been investigating companies children. suspected of illegal employment of skilled foreign workers, and has already Banze added that foreigners can found cases of falsified technical, continue to participate in the opening of academic and professional qualifications schools at other levels of education, but by some foreign workers in only in association with Mozambican Mozambique. citizens, based on the current foreign investment regulations. Foreign investors banned from opening primary schools in The new regulations also decentralise Mozambique the authorisation for the opening of private schools. The Mozambican Ministry of Education has decreed that, as of January next As from the 2015 school year, the year, foreign investors will be banned provincial authorities will be allowed to from opening primary schools. authorise the opening of private primary schools. The appointment of directors Under the new regulations, only for public primary schools also passes Mozambican entities will be allowed to to the local level. open and run primary schools, while foreigners will still be allowed to open Private educators will be allowed to institutions of secondary, technical or open boarding homes for pupils higher education. studying in both public and private institutions. The spokesperson for the Education Ministry, Eurico Banze, said "the There are currently 335 community opening of primary schools must owned schools in the country, and 299 essentially be the responsibility of in other forms of private ownership. Mozambicans", since this was a very Between them, they cater for 271 000 pupils.

WILDLIFE PRESERVATION

27 people arrested for poaching in poaching have been recorded from Manica during the first half of 2014 January to September 2014.

During the first eight months of 2014 the The detainees consist of individuals PRM in the Macossa district, Manica aged between 18 and 32. Province, arrested 27 poachers and seized nine firearms and 14 poaching The majority of poaching incidences traps. were recorded in ‘Warren Nine’ and ‘Mafuia Safari’. According to the district commander of the PRM, Jacinto Luck, 14 cases of

A possible zoning program could be a "crucial step" but that Mozambique introduced to the area in the future in a would need to "ensure it is respected by bid to decrease the number of humans all and fully implemented." in the area. The two-day seminar organised by the 22 elephants poached in Mozambique national prosecution office is aimed at in two weeks educating magistrates, police commanders and prosecutors on the On Monday (22 September) new legislation. environmentalists announced that poachers had slaughtered 22 elephants Likening the crisis to a "national in Mozambique in the first two weeks of disaster," the WCS, a New York-based September. The environmentalists environmental group, warned that warned that killing for ivory by organised organised crime syndicates were killing syndicates was being carried out on an between 1 500 and 1 800 elephants a "industrialised" scale. year (which corresponds to five elephants daily) mostly in northern Citing data from the southeast African Mozambique. nation's largest game reserve, Niassa, an advisor to the Wildlife Conservation The vast Niassa reserve, in the north, is Society (WCS), Carlos Pareira, said "in twice the size of South Africa's Kruger the first two weeks of September alone National Park. It is co-managed by WCS we counted 22 elephants that had been with the Mozambican authorities. killed." In the Niassa National Reserve alone, He was speaking at a meeting of the State loses approximately 24 million Mozambican officials, law enforcement U.S. Dollars per year due to elephant agents and diplomats in the capital poaching. Maputo. The poachers use automatic weapons Mozambique is under pressure from and high-calibre hunting rifles. Spikes international conservation groups to do and other traps concealed in the bush more to curb rampant poaching. have also been used to wound animals in the coastal Querimbas reserve, Until recently poaching was not causing slow and agonising deaths from considered a crime and those arrested gangrene. often got off with a fine for illegal weapons possession, frustrating In the northern Tete province, poachers conservation efforts. poison drinking water sources, killing not only elephants but other animals as A new law passed in June toughens well. penalties for poachers, including hefty fines and jail terms of up to 12 years for In Limpopo Park the poaching killing protected species. syndicates are often headed by Tanzanians who collaborate with the The US ambassador to Maputo, local Mozambicans. Douglas Griffiths, said that the law was

"The killing of elephants in the north of Nampula police spokesperson Miguel Mozambique... is reaching proportions Bartolomeu confirmed the seizure but never seen before," said Pareira. declined to go into any further detail. “We confirm the seizure of 26 elephant "The killing of elephants is being tusks which were in a house rented by industrialised," he said. citizens from Vietnam”, he said.

Ivory from Mozambique has been traced When the Vietnamese nationals realised to markets in Hong Kong and Taiwan that the police were on their trail, they but trinkets and carvings are also sold in made a run for it, and, as such, the craft markets in Maputo, the meeting police were only able to detain the two heard. Mozambicans.

Although the new conservation law was However, Bartolomeu was confident that approved in June, it will only go into the Vietnamese nationals would soon be effect at the end of the year, officials joining their Mozambican accomplices said. behind bars. “We have clues that will lead to the capture of the fugitives”, he PRM seize 26 pieces of ivory in claimed. “We are working to detain them Nampula city and we will soon be able to clarify the facts in this case”. On Tuesday (23 September) the PRM arrested two Mozambicans (whose Elephant census underway names have not yet been disclosed) in possession of 26 pieces of ivory. The On Monday (22 September) the ivory had been transported in a Mozambican Ministry of Agriculture container truck (registration number began the second national census of the ADT 109 MP). country’s elephant population.

The two Mozambican citizens are The census, which will last until 15 believed to have come from Cabo November, is intended to determine how Delgado province in order to sell the raw many elephants are in Mozambique, ivory to Vietnamese buyers in Nampula. their geographical distribution, and their It is likely that the tusks come from relationship with human settlements and elephants poached in Cabo Delgado poles of development. and the neighbouring province of Niassa, which contain the largest The Ministry’s National Directorate of elephant herds in the country. Land and Forests is charged with carrying out the census in co-ordination The two detainees confessed that they with the Tourism and Environment had brought the tusks from Cabo Ministries. The data from the census will Delgado, with the intention of selling help determine the intensity of elephant them to the two Vietnamese nationals. poaching, and will be used in efforts to However, the PRM had somehow got conserve these animals. wind of the deal, and aborted it. They turned up at the place where the ivory The census is in line with was to have been sold and seized it. recommendations from the Pan-African

Elephant Summit held in 2013 in horn. South Africa is home to 82% of Gaborone to discuss how to deal with Africa’s surviving rhino population. the alarming rise in elephant poaching and trafficking in ivory. The illicit rhino horn trade has become big money, but the exact size of the The census will be based on aerial trade is not known. Author of the book counts of the elephant population, using ‘Killing for Profit’ Julian Rademeyer said four light aircrafts and a helicopter. the current estimates of the retail cost of These aircrafts are expected to fly for a kilogram of rhino horn was about 50 approximately 425 hours during the two 000 U.S. Dollars. month survey. The census is budgeted at around 500 000 U.S. Dollars. The WWF effort, called the "Power from our will" campaign, is aimed at When the first Mozambican elephant Vietnamese men between 35 and 50 census was held, in 2008, the elephant years old. population was estimated at 22 000, but subsequent estimates suggest that it WWF South Africa rhino programme has fallen to around 19 000. manager Jo Shaw said the use of rhino horn has become a status symbol Mozambique’s elephants are being among the new generation of upwardly targeted by organised criminal gangs, mobile Vietnamese men. responding to the thriving demand for ivory in Asian countries such as China Most of them are socially mobile and and Thailand. form part of the first post-war generation to have a disposable income to spend A seminar on Monday, organised by the on goods such as rhino horn. These Attorney-General’s Office, warned that men, and often members of their elephant poaching was now on the families, believe that rhino horn can cure scale of “a national disaster”. Such impotency, reduce body "heat", and losses could push the country’s even cure hangovers. elephant populations towards extinction in as little as 30 years. "We believe that the underlying market demand is about three to four times WWF launch drive to cut demand for greater than it is," Dr Shaw said during a rhino horn press briefing on Monday.

The World Wildlife Fund (WWF) is Poaching, especially in the Kruger embarking on a campaign to alter National Park (which borders with consumer behaviour to eliminate rhino Mozambique) has skyrocketed in recent horn demand in East Asian countries, years. According to the WWF only 13 especially Vietnam. rhinos were poached in 2007. This rose to 1 004 last year, and it estimates Monday (22 September) marked World about 1 200 will be killed illegally this Rhino Day, a worldwide event to raise year. awareness of rhino poaching, especially in South Africa, and the myths The CEO of WWF-SA, Morne du surrounding the use of the animal’s Plessis, said demand had to be

eliminated before the situation became the slaughter, particularly in epic so dire for the rhino that there was no poaching zones, like the Kruger chance of recovery. National Park. “We need a well- motivated force, but our rangers "We will win this war," he said. are in a war they are not winning,” says Jo Shaw, the Dr Shaw said there was no evidence to manager of WWF-SA’s rhino suggest that flooding the market with programme. It’s the job of Major stockpiled rhino horn would reduce General Johan Jooste, who demand. "Rather, the market is so large commands the anti-poaching that it could easily just create more corps in the Kruger, to encourage demand by selling the rhino stockpile," his team. “Our rangers are doing she said. a sterling job. We are working hard to support them physically, South Africa has an estimated stockpile materially and mentally. This is a of 18 tons of rhino horn, of which 16 protracted, tough war.” He tons are in government hands, and the cautions against excessive remainder owned by private people and militarisation in the Kruger. “Do museums. you want more uniforms than Billabong T-shirts in the park? It’s Ten ways to save the rhino a place of serenity, of nature. South African journalist, Sheree Bega, Let’s clear the park from the looks at the 10 things we need to do outside – do the demand now to save the rhino. reduction campaigns, help poor communities and collapse the • Get more boots on the ground: crime networks. Fight poachers, The International Rhino and you only fight the symptoms.” Foundation believes that to win • Curb Far Eastern demand: At 65 the war against poaching, we 000 U.S. Dollars/kilogram, rhino need more experienced front line horn is the most expensive rangers, monitors and those commodity on the planet. In trained professionals that form China and Vietnam, it is used as the critical front line defence a status symbol among the new against wildlife crime. They need elite to ease hangovers and get to be well equipped with a fleet of high, as well as for its supposed technological innovations “medicinal” properties that can including drones, helicopters, cure everything from impotence infrared and GPS systems, as to cancer. This year, Vietnam has well as sniffer dogs, at their started rolling out ambitious anti- disposal. But even the South poaching campaigns, imprinting African National Parks messages on the myths of the (SANParks) acknowledges that medicinal value of rhino horn on this is not enough to “secure electricity bills and airport rhinos”. Then there is the sagging billboards, for example. It morale of rangers themselves – shouldn’t end there. “To date, the exhausted by the sheer scale of primary approach has been a

mass marketing but, if we want to stockpiles are in the hands of really make a difference down the private owners and the road, there needs to be more government’s own stockpile is at targeted efforts to change a towering 20 tons. consumer behaviour,” Jason Bell, • Bring criminals to justice: A new the director of the International dedicated special investigation Fund for Animal Welfare’s unit has been set up, led by southern African division points detective services that focus only out. on rhino poaching. But highly • Consumer countries need to get sophisticated and organised serious about law enforcement: criminal syndicates run the illicit Illegal consignments of rhino horn trade – and until these are only sporadically seized in masterminds are brought to the Far East. “We need both the justice, the killing fields won’t Chinese and Vietnamese stop. For the most part, it is governments to take the stick to poachers and couriers being those involved in the illicit trade caught in the net. “A holistic on the consumer end,” says Bell. enforcement approach, which “This will send a serious sees anti-poaching as part and message to consumers in these parcel of a broader effort to shut countries that their governments down criminal networks, not just want to take action and could deal with poachers, is crucial,” have a ripple-down effect on says Bell. Allison Thomson, the consumer behaviour in the longer founder of Outraged South term.” Shaw agrees: “We are African Citizens Against seeing occasional seizures at Poaching, says her analysis of airports and so on, but there’s no the arrests versus convictions, real law enforcement and action puts this at 16% “due to dockets being taken against consumers going missing, poachers and even dealers on that side.” escaping from holding cells and • Destroy horn stockpiles: To just bad police work…The fact prevent stockpiled horn from that conservation officers that leaking into the illicit trade, were involved in the many stockpiles should be destroyed in pseudo-hunting cases have a “transparent and audited never been charged or even manner”, says Bell. There is disciplined shows the lack of evidence to suggest that interest by our government in speculators are stockpiling rhino bringing perpetrators of these horn, both in Africa as well as crimes to task.” end-user countries. “Strong • Rein in Mozambique: Improved statements need to come from co-operation between South the Chinese and Vietnamese Africa and Mozambique is crucial. governments that they won’t “The crisis is such, that if the tolerate banking on extinction and Mozambicans don’t come to the any horn seized should be party, they will be complicit in the destroyed.” In South Africa continued decline of rhinos,” says

Bell. “Our rules of engagement into Kruger – they sent in a are just not sufficient in order to hundred or so troops to protect deter poaching and despite many 350 kilometres of porous border!” pleas to the government to In the Kruger, there is a massive change these rules nothing has breakdown in the top been done because of pressure management “with all the from Mozambique to protect their infighting going on”, she alleges. citizens from being killed.” For “How can they possibly be doing her part, Thomson is frustrated. all they can to fight poaching “We have a terrorist incursion into when they are busy watching our country from Mozambique their backs?” and they complained to our • Manage our rhinos: If poaching government that too many continues at its current rate, the Mozambique citizens were being predictions are gloomy – rhinos killed – asking if we valued our could be wiped out as soon as rhinos above that of the lives of 2020. In its latest research report, poachers … Without commitment released last week (12 to 19 from Mozambique to stop these September), SANParks scientists incursions what hope do we have state that during the last five of saving our rhinos? The list of years, the number of rhinos lost poachers that was produced in via poaching, removals and Parliament recently has names of natural deaths has matched the top officials in the police, number being born. SANParks magistrates, rangers, game park promises that the Kruger is a “big officials on it but yet they walk laboratory”, where technology is around untouched entering South being tested, and theories are Africa at will without any being investigated – in the next consequence.” 18 months, “we should be able to • Display decisive leadership: turn the situation around”. Shaw South Africa’s Environmental welcomes the emergency plan of Affairs Minister Edna Molewa translocating hundreds of rhinos recently told the parliamentary in poaching hot spots like the hearings on rhino poaching that Kruger to well-secured and well- the country’s approach is managed areas to boost “strategic, targeted and population growth. innovative”. But there is too much • Don’t be distracted by the lip service, argues Thomson. controversial debate over a legal “Firstly without the political will to rhino horn trade: The Department really stop this, we will not win of Environmental Affairs has set this war. Until now the politicians up a panel, criticised for being have given us the run-around. run by pro-traders, to investigate Look at how they reacted to the the feasibility of a legal trade in coup in Lesotho – they went in rhino horn. Its work will determine there overnight and took charge. whether South Africa approaches How have they treated the the Convention on International terrorist incursion over our border Trade in Endangered Species in

2016 with a proposal to legalise communities, where poachers the international trade. “There are recruited. Too often, the seems to still be a lot of people importance of this is downplayed. being distracted by the idea there “We need to be working together is only one solution – trade…It with the communities who live almost seems like there is a pro- around protected areas and trade lobby and an anti-trade making sure they reap the lobby and both sides are more benefits around wildlife,” says concerned about the other side Shaw. “I’ve visited villages in losing than about them saving the Mozambique and there is real rhino,” says Shaw. What has the hunger in these households. “I government done to stop think South Africa can learn from demand, wonders Thomson. other countries, like Namibia and “Nothing. They have only Zambia, not just paying lip participated in increasing demand service but making sure by allowing the pseudo-hunting to communities do benefit from continue and increased demand wildlife conservation in an on the back of the possibility of equitable way.” trade being opened.” • Conservation must benefit impoverished communities: Rhino conservation programmes must benefit impoverished

OTHER

Nearly half of the Mozambican specific area, crucial aspects that dictate population does not have access to the quality in service delivery in the primary medical care health sector. We know that the coverage of the health network is not Mozambique currently has 1 225 health ideal, does not go beyond 60%, the ratio care centres, covering 60% of the of health workers per capita is still high” population. (translated directly from Portuguese).

As such, almost 10 million Anticipate travel disruption due to Mozambicans are excluded from Ebola-related flight bans and health primary health care due to the lack of screening measures health facilities. The authorities in several countries have The spokesman for the National implemented entry restrictions to curtail Meeting of Public Health stated that “We the spread of Ebola from countries that look at the key challenges identified in have Ebola cases, while air carriers the strategic plan of the health sector, have restricted flights or modified the development of the health system, schedules. Health screenings have also availability of human resources in the

been implemented at ports of entry and Mozambique, Seychelles, departure in various countries across South Africa, Swaziland, the region. Tanzania, Zambia and Zimbabwe – have stated that Specific details of restrictions such as travellers coming from Ebola- those listed below are difficult to verify affected countries (according and subject to change, while the to the World Health implementation of state-imposed entry Organization, WHO) would be conditions can vary. Similarly, flight monitored for 21 days and schedules may change at short notice. that travel to member Travellers departing from countries countries for any gatherings affected by an outbreak of Ebola should would be discouraged. The seek itinerary-specific guidance from the SADC provided no details as relevant authorities on screening to how member countries will procedures and documentation carry out the associated requirements. They should also screening and follow-up and it reconfirm the status of flights before is likely that countries will setting out and allow additional time have individual processes. during arrival and departure to pass There are also reports that through enhanced medical screening. some countries require health documentation for entry. Travel Briefing Travellers are advised to contact the embassy or health Entry restrictions: ministry of their destination country to clarify their • On 12 September Mauritius individual circumstances and announced that it would prepare their trips accordingly. restrict entry of nationals from • South Sudan has placed a Nigeria, Sierra Leone, ban on travellers coming from Guinea, Liberia, Senegal and Guinea, Sierra Leone, Liberia Congo (DRC) unless prior or the DRC, or those who approval was obtained from have travelled to those the Passport and Immigration countries in the preceding 21 Office. days. According to the health • On 17 September Cameroon ministry, entry of travellers reopened its borders to from Nigeria depends on their travellers from Senegal. An 18 travel history in that country August ban remains in place and whether they have visited on travel from Nigeria, Ebola-affected areas. Guinea, Liberia and Sierra On 11 September Namibia's Leone. • foreign ministry announced • Southern African that foreigners travelling from Development Community countries affected by Ebola (SADC) Member States – would be prohibited from Angola, Botswana, DRC, entering the country. Lesotho, Madagascar, Malawi, Mauritius,

• On 01 September Gambia vessels and aircraft from suspended entry of persons Guinea, Liberia and Sierra who have visited Guinea, Leone. Liberia, Sierra Leone or • On 21 August Chad closed its Nigeria in the 21 days prior to land border with Nigeria at travel. Those travelling Lake Chad. The country indirectly from any of the previously reportedly banned aforementioned countries to the entry of any travellers Gambia via another country originating or transiting also come under this through Guinea, Liberia, measure. Nigeria or Sierra Leone, with • On 23 August Côte d'Ivoire airlines serving the country announced that it had closed reportedly rerouting flights. its land borders with Guinea • On 21 August South Africa and Liberia. restricted entry for all non- • On 22 August Gabon stated citizens travelling from that it is restricting the Guinea, Liberia and Sierra issuance of entry visas to Leone. The government travellers from Guinea, subsequently clarified that this Liberia, Sierra Leone and was not a blanket ban and Nigeria on a case-by-case could be waived for basis. 'absolutely essential travel'. • On 19 August Cape Verde • On 19 August Kenya banned nationals from suspended entry of Guinea, Sierra Leone, Nigeria passengers travelling from and Liberia from entering the and through Guinea, Liberia country for the next three and Sierra Leone, excluding months. The authorities have health professionals also banned entry to all non- supporting efforts to contain residents who have visited the outbreak and Kenyan Ebola-affected countries, citizens. including the DRC, in the past 30 days; on 01 September, Flights and other transport Senegal was added to this list. Countries that have implemented Ebola- • Rwanda, according to the US related travel restrictions: state department on 22 August, has banned entry to • Gambia has banned the entry travellers who have visited of flights from Guinea, Liberia, Guinea, Liberia or Sierra Nigeria and Sierra Leone. Leone in the 22 days prior to • Gabon has banned the entry travel. of flights and ships from countries affected by Ebola. • On 21 August Senegal closed its land border with Guinea, • Senegal has banned flights while the country's sea and air from Guinea, Liberia and borders will also be closed to Sierra Leone.

• Cameroon has banned flights Conakry (Guinea) until further to and from Nigeria. notice. • Chad has suspended all flights from Nigeria. Other airlines have modified their routes • Côte d'Ivoire has banned all but are still operating regular scheduled passenger flights from services. These include: Guinea, Liberia and Sierra Leone. • Royal Air Maroc • Nigeria has suspended flights • Brussels Airlines to the country operated by Gambian national carrier Medical screening Gambia Bird. Entry and exit health screening is now in Details of airlines that have restricted place in numerous countries in the flights to Ebola-affected countries: region and elsewhere; related measures can include the partial closure of land • Air France suspended flights borders, ports and river crossings in an to Sierra Leone from 28 effort to restrict cross- border travel. August. Members should allow additional time to • The Togo-based carrier Asky pass through medical screening and not Airlines has suspended flights travel if they are sick. Staff should to and from Guinea, Liberia continue to monitor local media and and Sierra Leone. Ebola websites for developments. • Arik Air (Nigeria), Gambia Bird Travel Advice Summary and Kenya Airways have suspended services to Liberia • Defer non-essential travel to and Sierra Leone. Guinea, Liberia and Sierra • British Airways has extended Leone. their suspension of flights to • Travellers flying from Liberia and Sierra Leone until countries affected by Ebola 31 December. should enquire with the • Ceiba Intercontinental, the relevant embassies or health national airline of Equatorial ministries about any Guinea, has reportedly requirements conditioning suspended flights to West entry at their destination, and African countries. In addition, prepare accordingly. the airline has suspended • Reconfirm bookings on all flights to Cameroon's capital regional routes as increased Douala from 01 September. demand is likely. Emirates Airlines has • • Allow additional time during suspended flights to Guinea. arrival and departure to pass • Korean Air suspended flights through enhanced medical to and from Kenya from 20 screening. August. • Do not travel if you are sick. • Senegal Airlines has Persons with fever or other suspended flights to and from Ebola-like symptoms may be

taken to designated centres or have entry/exit denied.

News sources utilised:

• O Pais • Jornal Noticias • Club of Mozambique • Canal Mozambique • All Africa • Macauhub • Business Day Live • Bloomberg • The Star • Control Risks Group • News 24 • Mmegi Online END