- Total evacuated most of its personnel from Palma and the Afungi peninsula last week, ahead of insurgent attacks on the doorstep of its LNG site on 1 January.
- Total’s unprecedented measure and extensive insurgency-related disruption to transport along mainland and maritime routes represent a major setback for a project on which Mozambique’s entire sovereign outlook hinges.
- Recent insurgent attacks have fueled fears that the conflict may encircle Palma – and by extension, the LNG hub under development on the adjacent Afungi peninsula.
- More frequent and prolonged attacks reflect the insurgents’ improved manpower, armament, and financing, while the poorly trained security forces seem outmaneuvered.
A report that the government would suspend interest payments on its USD 900mn Eurobond appears to be false. Officials at the Ministry of Economy and Finance (MEF) have been quick to state that the government intends to make the USD 22.5mn coupon payment due in September.… Read the rest
On Friday, 24 April, the board of the International Monetary Fund (IMF) approved a disbursement of USD 309mn under the Rapid Credit Facility (RCF) to support Mozambique’s “urgent balance of payment and fiscal needs stemming from the COVID-19 pandemic.”… Read the rest
The International Monetary Fund (IMF) has postponed its planned negotiating mission to Maputo on account of the COVID-19 pandemic. While this injects uncertainty into the question of timing, both the IMF and government seem intent on concluding a new financing deal eventually.… Read the rest
● The International Monetary Fund (IMF) has confirmed that it has received a formal request from Mozambique for a new Policy Support Instrument (PSI) and Stand-by Credit Facility (SCF).
● A return of IMF funding, which was suspended in 2016, would be a major step towards restoring Mozambique’s financial credibility, after the sovereign’s fall from grace following the 2016 USD 2bn hidden debts scandal.… Read the rest
● Familiar cabinet line-up suggests President Filipe Nyusi’s second term will look much like the first. However, the backdrop differs for these reasons:
● While Nyusi’s first term was characterized by a corruption-induced financial crisis, the economy and the mega-LNG projects are now expected to accelerate, and the country is slowly clawing back its financial reputation.… Read the rest