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The #1 Newsletter for top business, investment, and legal news in Mozambique;
September 1 2009; 154rd Issue
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MOZAMBIQUE REVIEW
Mozambique wins African Gender Award
Mozambican President Armando Guebuza has been awarded the 2009 African Gender Award. The award was presented to him in Maputo on Friday 28 August by Bineta Diop, a prominent women’s rights activist and the founder and Executive Director of 'Femmes Africa Solidarité, an international women’s rights NGO. At the ceremony Bineta Diop stated that, “We are pleased to announce that Mozambique won the award in recognition of everything the country has done for women’s well-being and for society as a whole”. She added that this achievement is largely owing to President Guebuza’s open style of leadership. The African Gender Award is made every two years to the African leader who has most demonstrated outstanding achievement in encouraging peace and development through the implementation of gender-sensitive measures. Read more. (Source: AIM and www.africangenderaward.org)
Lesotho and Mozambique to waive visa requirements
The governments of Mozambique and the Kingdom of Lesotho have signed a visa waiver agreement which will allow the citizens of each country to enter into the other without the need for visas. This agreement is one of the outcomes of the bilateral negotiations held last week between President Guebuza and the King of Lesotho, King Letsie III.. Foreign Affairs minister of Mozambique , Oldmiro Baloi, has stated that before the agreement can come into force a period of some months is required for the agreement’s proper implementation, owing to the need for discussions concerning the legal aspects of the agreement. (Source: AIM)
Mozambique's most wanted criminal is back in Mozambican custody
Mozambique’s most wanted criminal Anibal dos Santos Junior is back in Mozambican custody after being recaptured in South Africa on Friday last week in an operation carried out by Interpol. The convicted murderer of investigative journalist Carlos Cardoso escaped from prison for a third time in December last year. National Director of the Criminal Investigation Police (PIC), Carlos Come, has confirmed that Anibal dos Santos Junior arrived in Maputo on Tuesday night. (Source www.clubofmozambique.com and MSN)
Completion of Mozambique National Stadium delayed until after 2010 World Cup
The Mozambique National Stadium will only be ready after the end of the 2010 Soccer World Cup, said the stadium’s director Celso Magaia last Wednesday.
So far forty-one percent of the construction work has been concluded, including the first three rings that make up the structure. With a modern design and a capacity for 42,000 spectators, the original intention behind the building of the stadium had been to encourage soccer teams participating in the 2010 to do part of their training in Mozambique . (Source: Macauhub)
GOVERNMENT
Six new ambassadors and high commissioners for Mozambique
President Armando Guebuza has received six credential letters from new ambassadors and high commissioners from the same number of countries at a ceremony at his offices which took place last week. The diplomats who met President Guebuza included the Ambassadors Dang Giang from Vietnam, Eduardo Lopez Busquets from Spain, Edgar Jose Perea Arias from Colombia, Andrew Gbebay Bangali from Sierra Leone, Moumouni Fabre from Burkina Faso and High Commissioner Ann Jacqueline Harrap from Australia. Speaking to reporters after the presentation of the credential letters Foreign Affairs minister Oldemiro Baloi stated that the renewal of ambassadorial positions by these countries is indicative of their excellent relations with Mozambique . (www.clubofmozambique.com)
Angola approves cooperation accords with Mozambique
Cooperation agreements between the governments of Angola and Mozambique in the sectors of defence, oil, gas, social communication (media), geology and mining were approved very recently by the Angolan cabinet council.
The accords aim to strengthen cooperation ties between the two countries. (Source: Angola Press)
FINANCE NEWS
Provided by Jane Grob jane.grob@scp.co.mz Swiss Capital Partners www.scp.co.mz
Swiss Capital Partners is a financial consultancy founded in 2006. We assist companies to raise finance for their projects in Mozambique . If you are looking for debt or equity finance, contact Jane Grob at jane.grob@scp.co.mz or come and visit us at the Hotel Cardoso in Maputo .
Combating the global crisis: IMF to inject $283 billion in SDRs into global economy, boosting reserves
With much of the world still mired in recession, the IMF took action to bolster its members’ reserves through an allocation of SDRs, or Special Drawing Rights.
The allocation, equivalent to $250 billion, was made on August 28 and will be followed by an additional, albeit much smaller, allocation of $33 billion on September 9. With the two allocations totaling roughly $283 billion, the outstanding stock of SDRs would increase nearly ten-fold to a total of approximately $316 billion. The allocation of SDRs by the IMF boosts member countries’ reserves by their convertibility into usable currencies. Once the SDRs have been added to a member country’s official reserves, the country can voluntarily exchange its SDRs for hard currencies, such as the U.S.. dollar, euro, yen, or pound sterling, through voluntary trading arrangements with other IMF member countries. Read more. (Source: www.imf.org)
FNB plans to have a branch in each of Mozambique ’s provincial capitals
The Federal National Bank (FNB) of South Africa plans to invest US$12 million to fund its expansion plan by the end of 2010. Hermenegildo Gamito, Chairman of the Board at FNB Mozambique, has said that the expansion plan included the installation of at least one branch in each provincial capital in Mozambique in order to, “satisfy and ever-increasing number of customers”. The bank’s newest branch was recently opened in the city of Nacala-porto , the second branch to open there in less than a year. FNB currently operates a total of 9 branches across Mozambique . Read more. (Source: O Pais Online)
BUSSINESS NEWS
FACIM opens from 1 to 6 September
The 45th event of the Maputo International Fair (FACIM), ‘the meeting venue for business people’, officially opened on Monday. The Fair will run Saturday 6 September.. The goal of FACIM is to open the Mozambique market up to international markets, to obtain the highest number of national exhibitors, and to attract and potential foreign investors. Fifteen countries have indicated their intention to participate, as well as 20 foreign companies, and a total of 172 Mozambican companies. The Fair, which will showcase the many exciting business opportunities in Mozambique , will be the last one being held in the historical venue known as the fair grounds. Next year the fair will take place in the district of Marracuene in Maputo province. Visit our FACIM dedicated on-line space here.. (www.clubofmozambique.com)
Brazil boosts cooperation with Mozambique by opening Embrapa office
Brazil will boost its cooperation with Mozambique in the agriculatural sector with the signing of a trilateral agreement between Brazil , Mozambique , and Japan , and with the opening of an office of the Brazilian Agricultural Research Corporation's (Embrapa) in Maputo , the Mozambican Agriculture Minister Soares Nhaca has said..
Speaking to Portuguese news agency Lusa while in Brazil, Nhaca said that the office is expected to open in the first half of next year and gave assurances that the "decision has already been made." According to Nhaca, a memorandum of understanding for the opening of the office will be signed on 14 September, when a delegation of Embrapa will be in Maputo . The trilateral agreement will be signed on the same day. The agreement involves Japanese funding for the development of the savannah area of the Nacala corridor. Read more.(Source: macauhub)
Mozambique could no longer need budget support by 2023
The head of the British Department for International Development (DFID) Mozambique , Keith Mackiggan, has been quoted by O Pais as saying that Mozambique could no longer need budget support by 2023. His statement is supported by an economic forecast recently developed by a group of DFID economists. However, such a development would be contingent on Mozambique ’s ability to maintain current performance and economic indicators, including the country’s current seven percent growth rate. (Source: www.clubofmozambique.com)
Cereal production reaches 2.6 million tonnes
Cereal production has reached 2.6 million tonnes for the 2008/2009 farming season, a growth of 14.1 percent up from the previous year, stated Deputy Education Minister Luis Covane.
The government has since raised its cereal production target to 3.9 million tons of cereals for the next farming season (2009/2010), which would be a growth of 18.2 percent. Covane added that the 2008/2009 season had also produced 430.6 thousand tonnes of legumes and 9.2 million tons of root vegetables, an increase of 7.9 and 8.2 percent respectively up from the previous season. (Source: AIM)
DONORS
Mozambique to receive US$2 billion from USA over the next five years
The United States Government plans to disburse US$2 billion to Mozambique over the next 5 years for the implementation of a number of projects, mainly in the health, education and agriculture sectors, reported AIM. US charge d'affaires of the American Embassy to Mozambique , Todd Chapman, made this statement last Wednesday in the central province of Sofala , where he was on an official visit. Citing the daily "Diário de Moçambique", AIM wrote that the financial cost of projects currently financed by the US administration in Mozambique amounts to over US$350 billion per year, of which US$250 million are being spent on projects aimed at improving health services. (Source: www.clubofmozambique.com)
Brazilian parliamentary commission approves 1st phase of anti-viral drug factory in Mozambique
A commission of the Brazilian parliament last week approved a draft law that will authorise the country to donate US$7.47 million for the first phase of an anti-viral drugs factory to be built in Mozambique . According to Agência Câmara – the Brazilian parliament’s news service – the project will now be forwarded to the Brazilian Senate, where the feasibility of the project will be evaluated. The Oswaldo Cruz Foundation (Fiocruz), a health science and technology institute linked to the Brazilian government, and involved in the proposed project, estimates that the first phase of the factory will cost around US$9 million, of which US$2 million will need to be provided by the Mozambican government. (Source: macauhub)
MINING AND ENERGY
Kenmare Resources to reach full output in Mozambique before year-end
Ireland-based Kenmare Resources, which owns the Moma titanium minerals mine in Mozambique , is on target for full production before the end of the year, according to a miningweekly.com report published on Monday. Citing Kenmare Resources’ chairperson, Charles Carvill, miningweekly.com reported that a performance improvement project at Moma was "virtually finished", noting that it had contributed to a steady increase in output. In the second quarter of 2009, the production of heavy mineral concentrate increased by 23% from the first quarter, ilmenite output rose by 12,2%, zircon production jumped 45%, while rutile output surged by 158%.. The Moma mine will produce 800 000 t of ilmenite, 21 000 t of rutile and 56 000 t of zircon once its full production potential is reached. (www.miningweekly.com)
Mantra Resources starts drilling at the Zambeze Valley Project
The Directors of Mantra Resources Limited are pleased to announce that reverse circulation drilling has commenced at the Company's wholly-owned Zambezi Valley Project (ZVP) - Mozambique , according to an document sent to the Australian Securities Exchange. The project, located some 300 kilometres west of Tete in the Tete Province , covers Karoo age sediments similar to those hosting the uranium mineralisation at the Company's wholly-owned Mkuju River Project in Tanzania . According to the announcement document, the reverse circulation drilling programme on ZVP Mozambique aims to test an area of radiometric and geochemical anomalism between ZVP 1 and ZVP 2. For more details a link to the announcement document is provided here. (www.clubofmozambique.com)
Portugal’s Self Energy enters Mozambican market with Visabeira
Self Energy, a Portuguese company that promotes energy efficiency solutions, has opened a subsidiary in Mozambique in partnership with Visabeira and Mozambique ’s Electrotec, Portuguese financial daily Jornal de Negócios reported. The subsidiary, which was officially launched on Monday, is based in Maputo . Forty-five percent of the subsidiary is owned by Self Energy, 15-percent by Visabeira and 40 percent by Electrotec, a company specialising in construction of the Mozambican electricity grid. Read more. (source: macauhub)
Vale, Tata Studying coal prospects in Mozambique , Governor Says
Vale SA, the world’s biggest iron- ore producer, and Tata Steel Ltd., India ’s largest steelmaker, are involved in coal-mining viability studies in northern Mozambique , a government official said.
The companies are evaluating the potential of the Manhamba basin in Mozambique’s northern Niassa province, about 3,000 kilometers (1,865 miles) from the capital, Maputo, which the government estimates has more than 3 million metric tons of coal reserves, Niassa provincial governor Arnaldo Bimbe said in an interview on Sunday. Tata and Vale have so far won coal-mining concessions in the northwestern province of Tete , Bimbe said. (Source: Bloomberg)
International experts meet in Mozambique to discuss small scale mining from 8 to 14 September
Around 300 delegates representing over 50 countries have confirmed their participation in the International Conference on Artisanal and Small-Scale Mining, scheduled for 8 to 14 September in the Mozambican cities of Maputo and Chimoio. Organised by the Mozambican government in coordination with the Secretariat of the Communities and Small-scale Mining Initiative, (CASM), an organisation linked to the World Bank, the event will be split into two parts, the first of which will take place in Maputo from 8 to 10 September, and the second in Chimoio from the 11 to the 14 September, where workshops and field visits will take place.. The government aims to optimise the benefits of the conference through maximising knowledge about and techniques for increasing the viability of national artisanal mining. (Source: Macauhub)
Coal India to invest over US$1 billion dollars in overseas mines including Mozambique
Coal India Ltd., a company with interests in Mozambique , may invest as much as $1.5 billion to acquire mines overseas to help overcome a predicted fuel shortage as the country plans to almost double power generation capacity by 2012, reported Bloomberg.
According to the news agency report, demand for coal is estimated to reach 731 million tons a year by March 2012. Currently, Coal India Ltd. has secured two blocks in Mozambique that may hold a combined 1 billion metric tons of thermal coal, along with some coking coal. Referring to a report published in the Indian newspaper, The Business Standard, Macauhub has reported that the company has made the decision to build a subsidiary in Mozambique so that the company may begin the exploration of the concessions obtained in March. Coal India Ltd is also seeking mines in Australia , South Africa , the U.S. and Indonesia . (Source: www.clubofmozambique.com)
LEGAL NEWS
Provided by Furtado, Bhika, Loforte, Popat and Associados (FBLP) law firm rf@fblp.co.mz
Mozambique buyers warned to do their homework
Mozambique is rapidly becoming a buzzword in property circles, especially among southern hemisphere buyers. The country's astounding natural resources, and in particular its stunning coastline, have attracted the interest of numerous resort developers, some of whom are planning to build fractional ownership properties.
But because the country's international property market is in its infancy, potential buyers of Mozambique fractional property should be extremely careful when doing their research and signing legal documents. Read more. (Source: www.shelteroffshore.com)
Mozambique passes four news laws
The Mozambican government has recently passed four new laws, namely, the Law of Civil Aviation, the Law of the Defence of the Consumer, a law relating to the exercise of private medicine and the General Law of the Cooperative. A press release from the Republic Assembly indicates that the body has submitted a further four sets of amendments and laws for presidential evaluation. Those are, the Laws of Domestic Violence Against the Woman, the Organic law of the Administrative Jurisdiction, the Revision of the Law nº 5/2003, of 21st January, and the Law of Higher Education. (www.clubofmozambique.com)
TOURISM
Mozambique makes its debut at Explore South Africa
Mozambique’s National Institute of Tourism, the government department responsible for promoting tourism, will be represented at this year’s Explore South Africa, an event that aims to promote tourism in South Africa . This year the event, scheduled to open on the 1 September, will be hosted by Brazil . Namibia and the Seychelles will also be participating in the event.
Explore South Africa is a free entry event and registrations may be submitted online at www.exploresouthafrica.com.br. (www.clubofmozambique.com)
Zalala beach to have a four-star hotel
A sixty-room, four-star hotel is planned for construction on the Zalala Beach . The hotel, to be called the Zalala Beach Resort, will also have a conference room and car park.
The Provincial Director of Tourism at Zambézia, Fátima Romero, was quoted by Noticias as saying that the Zalala Beach Resort is the biggest investment yet in the province this year. (www.clubofmozambique.com)
OVER THE BORDER
Zambia says that the mine windfall tax will not be reintroduced
In a bid to boost foreign mine investment, Zambia said last week that the controversial windfall tax that was applied when copper prices rose last year will not be reintroduced, this despite the current rally in metals prices. The introduction of a 25 percent windfall tax and other taxes in 2008 was backed by the World Bank to help Zambia raise funds required to build schools, roads and provide health and education services. Mines and Minerals Development Minister Maxwell Mwale said the government would not reintroduce the tax, which was scrapped in January, as it could scare away foreign investors. Read more. (Source: Reuters)
Caster Semenya gender test: ANC Youth league say IAAF has humiliated South Africa
In a statement issued on August 25, the ANC Youth League (ANC YL) welcomed back gold medallists Caster Semenya and Mbulaeni Mulaudzi and silver medallist Khotso Mokoena from the International Association of Athletics Federation (IAAF) World Championships. In their statement they express anger at the alleged attempts of the IAAF to demoralise and humiliate not only Castor, but all South Africans, through requesting that Semenya undertake a gender test. They express their determination to engage in a vigorous campaign to demand an unconditional apology from IAAF. As a token of appreciation to the athletes the ANC YL has stated that it will donate cash to the winning athletes. Caster Semenya will receive R60,000.00, Mbulaeni Mulaudzi R40,000.00 and Khotso Mokoena R25 000. (www.clubofmozambique.com)
Zuma says Zimbabwe is ready to move forward
The Zimbabwean political leadership is ready to tackle political and social challenges head-on, President Jacob Zuma said in a recent visit to Zimbabwe .
"We bring fraternal greetings from the people of South Africa who have closely followed with keen interest the positive developments that have taken place in this great country in recent times," said President Jacob Zuma in a report published by Sapa. Zuma noted that the country's achievements signalled to locals and the world that Zimbabwe 's political leadership was ready to "collectively tackle the political and the socio-economic challenges head-on". (www.clubofmozambique.com)
Banana disease threatens food security in sub-Saharan Africa
A serious banana disease is threatening food security prospects for more than 30 million people in sub-Saharan Africa, plant health scientists meeting in Arusha , Tanzania said in a statement. The banana bunchy top viral disease, which spreads epidemically and is almost impossible to eradicate once established, has forced scientists and policy makers to urgently convene under the auspices of the Southern Africa Development Cooperation (SADC), and develop disease management strategies that will avert a food crisis. Read more.(www.clubofmozambique.com)
THE MARKETPLACE
ISCTEM Business School
The new Business School at the Mozambique Institute of Science and Technology (Instituto Superior de Ciências e Tecnologia de Moçambique - ISCTEM) is being launched to address the human capital development priorities of the country by delivering the high quality, high impact executive education to Mozambican professionals and entrepreneurs.
Until November 2009, ISCTEM Business School and the University of Witswatersrand ’s Business School (WBS) will offer a series of six results oriented executive education courses. Four of the courses are certified by both business schools. Two of the courses are certified by ISCTEM Business School and are delivered by WBS Faculty. Each course is delivered in English with Portuguese language facilitation.
a. Finance and Accounting
i. Finance for Non-Financial Managers, 4 day intensive (WBS/IBS)
ii. Certificate in Finance and Accounting, 15 days total over 5 months (WBS/IBS)
b. Marketing / Communications
i. Principles of Marketing, 4 days intensive(WBS/IBS)
ii. Marketing Planning for Your Small Business (IBS with WITS Faculty)
c. Management and Leadership
i. Project Management, 4 days intensive (WBS/IBS)
ii. Leading Innovation, 1 day (IBS with WITS Faculty)
For more information, please contact:
Email: ibs@isctem.ac.mz
Web: www.isctem.ac.mz/ibs.html
Italian Food Fair
Hotel Cardoso, in conjunction with the Italian Embassy and famous Sicilian restaurant, ANTICA FOCACCERIA S FRANCESCO, are hosting an Italian Food Fair from August 31st until September 6th.
The promotion will take place in our fabulous new restaurant, FIAMMA, set atop the hillside on the other side of the pool.
The menu will be designed by VINCENZO CONTICELLO, owner and operator at the Antica Focacceria S Francesco, who will work in tandem with our chefs to produce daily Italian gastronomic wonders!
Buffet available at lunch and A la carte for dinner. Sicilian wines available! Bookings are essential please call 21 491071 and ask for FIAMMA.
Mozambique Property News
Mozambique Property News – August 24, 2009
This week’s highlights include three holiday homes:
1) Vilanculos - luxury, fully-furnished, 3-bedroom holiday home with a pool, in a secure complex, overlooking the Bazaruto Archipelago islands.
2) Ponta de Ouro - luxury 3-bedroom timber home with Moz. hardwood cladding and decks.
3) Tofo - modern 3-level home with 3 double bedrooms overlooking Tofinho beach.
Investment opportunity
Established lodge with high occupancy levels - just 50km outside Maputo - set in a park-like setting of indigenous trees on 3ha. Comprising of a main building with a large restaurant area, bar, laundry, kitchen, office and storeroom. Included on the property are nine separate units, swimming pool, a freshwater borehole, electricity, and security.
For further information please contact Sandy Wilson on 82 369 8745 or sandy.wilson@mozproperty.com
This Edition is brought to you thanks to the partnership of:
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www.hotelcardoso.co.mz
www.fblp.co.mz
www.isctem.ac.mz
www.pkf.com
www.scp.co.mz
www.frexpo.com
www.mozproperty.com
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DISP.REGº/Nº75/GABNFO-DEC/2006
Director – Adrian Frey adrian.frey@clubofmozambique.com
Editors: Inércio Pene inercio.penel@clubofmozambique.com Mutxhini Ngwenya mutxhini.ngwenya@mozlegal.com
Contributing editors: Joaquim Falé joaquim.fale@clubofmozambique.com
Club of Mozambique
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