Thursday, October 18, 2018

The proposed restructuring

Banks that arranged billions of dollars of loans to government companies in Mozambique have proposed to restructure some of the now-defaulted debt, as the government of President Filipe Nyusi struggles to relieve financial pressure on Mozambique’s economy.Credit Suisse Group AG proposed the deal in recent weeks on behalf of a group of institutions holding a loan that the Swiss lender and Russia’s Bank VTB Group arranged in secret for a Mozambican government-owned company five years ago, people familiar with the matter said.The restructuring would swap the loan into new debt with interest payments tied to Mozambique’s future economic performance, one of the people said, and would help the banks move past an episode that attracted international scrutiny to their lending practices.
The first known proposal by the group comes as the country attempts to restore access to international capital markets. President Nyusi said in a September interview that Mozambique needs external investment to pay for basic services ranging from health care to water infrastructure.The debt crisis has become emblematic of the risks posed by a surge of borrowing conducted in recent years by African governments that fund managers say has left countries like Zambia and Ghana heavily indebted and at risk of default.
“We need to rebuild roads and we don’t have enough money,” President Nyusi said during the interview. “We need water, for example, for food security…we need financing.”
The debt is part of $1.2 billion the banks helped Mozambique borrow soon after the discovery of vast natural-gas reserves off its coast. Development of the gas fields has been slow and the country defaulted on the debt in 2017 after much of the borrowed funds disappeared.Foreign governments and financial institutions are unwilling to resume lending to the country until it normalises relations with its private creditors and the International Monetary Fund, which stopped lending (Photo Finance minister Adriano Maleiane). to Mozambique when The Wall Street Journal reported the existence of the undisclosed debt.   Mozambique offered in March to reduce some of its debt and delay repayment of the rest until as late as 2034, but creditors rebuffed the deal. The Credit Suisse group’s proposal, like a previous one by owners of a defaulted Mozambique bond, suggests swapping their claims into new securities that would pay increasing amounts when gas exports replenish the country’s coffers, a concept the Nyusi administration has consistently rejected.
“The proposal does not meet the requirements of the authorities and is not considered a viable basis for a solution,” said Ian Clarke, a lawyer for Mozambique at White & Case LLP.
A spokesman for Credit Suisse said the bank “has been working to develop a sustainable restructuring solution that accommodates the government of Mozambique’s requests and accounts for its current economic circumstances.” A spokeswoman for VTB declined to comment.
Mozambique is also deadlocked with the IMF, whose staff was angered by the hidden loans and has demanded answers about who was behind the deals and where the missing funds have gone.
The Securities and Exchange Commission and US Justice Department opened investigations of the deals in recent years.Mozambique’s Justice Department continues to look for the missing funds and is cooperating with the IMF and hopes the fund will resume lending as a sign of good faith and encouragement, President Nyusi said.
“We would like them to give us encouragement,” he said.
An IMF representative declined to comment. The IMF said in April that “full clarity on the use of the proceeds of the previously undisclosed loans contracted by three public companies will be critical to restoring confidence and encouraging private investment.”

Manual for Investigation and Criminal

Uspgr.suppliedThe Attorney General and the United States Ambassador today launched the new Manual for Investigation and Criminal Procedure on Wildlife Crimes at a formal public event at the Attorney General’s Office in Maputo. The manual was developed, with support from the United States through the U.S. Agency for International Development (USAID), as a training tool and reference for investigators and prosecutors on how to successfully prosecute organised crime cases involving wildlife trafficking.
The population of Mozambique’s wildlife, especially elephant and rhinos, has decreased significantly due to poaching and wildlife trafficking. Over the past 50 years, Mozambique’s elephant population decreased from 50,000 to less than 10,000, and rhinos are extinct.
The purpose of the legal manual and training is to improve support for personnel dedicated to investigating and prosecuting organised crime cases with a focus on wildlife trafficking. The first training on the use of this legal handbook took place at Gorongosa National Park on September 17, 2018, and two more trainings will be held for prosecutors, investigators, and wildlife law enforcement officers in the provinces of Niassa and Gaza.The Mozambique Attorney General’s Office and its Central Anti-Corruption Office are long-time U.S. Government partners. In 2017, the U.S. Mission, through USAID, entered into an agreement with the Attorney General’s Office to implement the milestone-based two-year Wildlife Crime Prosecution Support Program.

Wednesday, October 17, 2018

MTI Wireless Edge

Resultado de imagem para irrigacaoMTI Wireless Edge Ltd’s (LON:MWE) subsidiary, Mottech Water Solutions Ltd, has secured a contract for its wireless irrigation software in Mozambique, its first in the country.The telecommunications firm said the contract would be delivered in multiple phases with an initial value of 1mln South African Rand (around £51,422) and an expected total value of up to 5mln Rand (£257,108).Mottech develops software and systems that help farmers remotely irrigate and fertilise crops, allowing farmers to use resources with greater precision when farming.MTI said that with 3.9mln hectares of arable land, Mozambique represented an addressable market of over 1bn Rand (£51mln) for Mottech.The company has operated in neighbouring South Africa for 10 years was working to expand into the commercial farming market through the appointment of service and sales distributors in Mozambique and other countries in the region.Launce May, chief executive of Mottech South Africa, said the company would continue to invest in developing its direct sales and distributor networks for its irrigation management, water treatment, desalination, and purification systems.