Police impose authority

Forty guns AKM type, seven pistols and unspecified amounts of precious and / or semi-precious stones were yesterday seized by police in the city of Maputo, in an operation that targeted the headquarters of Renamo and the residence of its leader in the capital.According to data collected by our Report, the residence of Afonso Dhlakama, located in front of the Detachment Female Square, were found 38 AKM, seven pistols and the remaining two AKM were discovered in Renamo headquarters.In the same operation were apprehended unspecified amounts of ammunition of various weapons and equipment of the Armed Forces of Mozambique Defense (FADM).

The arrest of those war artifacts is part of a weapons collection operation in other people's hands that has been triggered by the police and was possible thanks to popular complaints.

Bernardino Rafael, commander of the PRM in Maputo, explained yesterday told reporters that the seizure of these weapons is in fulfillment of another mission of Police, which aims to collect weapons in the hands of others and are mostly used to practice various crimes .

"We have taken note of an information that those sites had weapons leaving and entering, then let loose a work that culminated in the seizure of the same. This only came to confirm that the information we had was true, "said the top police officer.He said that the existence of weapons in the hands of others can be the cause of the upsurge in crime wave in the capital, especially robbery homes, shops, and other criminal acts."In a preliminary work done by the police it was found that some weapons were used less than a month, not knowing what they were doing. We will continue to work to collect weapons in the wrong hands, "he said.

However, Bernardino Rafael said they were notified four guards that were found at the headquarters and residence of Alfonso Dhhakama to provide some testimonials to know who this ordnance.

"We are trustees of these weapons, until they come to explain who we are and what the alleged owners do with this war material," said Rafael Bernardino.

The house of Renamo President is located (Av.Julius Nyerere) in a prime area of ​​the capital and 5 minutes (walk) from the office of the Presidency and 10 minutes from the American Embassy.

Nyusi and Lungu inaugurate floating power

The Mozambican and Zambian Presidents, Filipe Nyusi and Edgar Lungu, on Saturday inaugurated a floating power station in Nacala in the northern province of Nampula.The power station can generate 100 megawatts and can supply northern Mozambique and Zambia.The Turkish vessel containing the power station has been docked at Nacala port since 18 February. 110 kilovolt cables were connected, linking the ship to two special reception pylons, 65 and 85 metres tall.“The electricity produced by the floating power station will be injected into the national grid of EDM (the publicly-owned electricity company) at the Nacala sub-station”, said EDM chairperson Mateus Magala, during the inauguration ceremony.The purpose of the power station, he said, is to guarantee the power supply to northern Mozambique for the next two years. In addition, the supply from this station allows EDM to sell power to Zambia.Magala said a new source of power was needed for the northern provinces because of the limited capacity of the centre-north line, which carries power from the Cahora Bassa dam on the Zambezi to the north of the country.That limited capacity was cruelly exposed in January 2015, when major flooding on the Licungo river, in Zambezia province swept away ten pylons on the line, and cut power supplies to the three northern provinces of Nampula, Niassa and Cabo Delgado, and to the northern districts of Zambezia. It took a month before normal power was restored to the north.Zambia has long had a serious electricity deficit. Recently matters have been made much worse by critically low levels of water in the Kariba dam, a major source of power for both Zambia and Zimbabwe.The ship carrying the power station is owned by Karpowership, a subsidiary of the Turkish company Karadeniz Holding.

Nyusi declared that the floating power station is “an example of energy cooperation to the benefit of the citizens and the economies of Mozambique and Zambia”.The Mozambican government, he recalled, has defined electricity as a priority, and recently the supply of power has been growing at an average rate of 12 per cent a year, contributing significantly to the country’s Gross Domestic Product.He noted that the SADC (Southern African Development Community) region currently faces an electricity deficit of 7.9 gigawatts at peak hours. This, plus the drive to industrialise the region, provided opportunities for Mozambique to become a centre for the generation and transmission of energy for the entire region.Already, the major source of power in Mozambique, the Cahora Bassa dam, sells most of the power it generates to South Africa (and a smaller amount to Zimbabwe). The country has enormous hydro-power potential, plus coal and natural gas deposits, most of which are so far untapped.Nyusi added that bringing the floating power station into operation results from a long experience of partnership between the Mozambican and Zambian electricity companies, and the need to provide more electricity of good quality.

Lungu was on a three day state visit to Mozambique, during which a memorandum of understanding on electricity was signed. Nyusi said that a coal fired power station will be built in Tete province, plus a new transmission line interconnecting the Mozambican and Zambian grids.“We are hopeful that, in the future, with an increase in good quality energy, we shall have greater and better productivity in agriculture, in agro-processing, and a greater guarantee of food and nutritional security”, declared Nyusi. Other benefits would include the emergence of new tourism projects, the development of the fisheries sector, and improvement in the supply of electricity for schools, health units and water supply.

Fitch Affirms Mozambique at ‘B’

Fitch Ratings has affirmed Mozambique’s long-term foreign and local currency Issuer Default Ratings (IDRs) at ‘B’, its Short-term foreign currency IDR at ‘B’ and its Country Ceiling at ‘B’ and removed them from Rating Watch Negative (RWN). The Rating Outlook is Negative. Under EU credit rating agency (CRA) regulation, the publication of sovereign reviews is subject to restrictions and must take place according to a published schedule, except where it is necessary for CRAs to deviate from this in order to comply with their legal obligations. Fitch interprets this provision as allowing us to publish a rating review in situations where there is a material change in the creditworthiness of the issuer that Fitch believes makes it inappropriate for us to wait until the next scheduled review date to update the rating or Outlook/Watch status. The next scheduled review date for Fitch’s sovereign rating on Mozambique is 29 April 2016, but Fitch believes that developments in Mozambique warrant such a deviation from the calendar and the rationale for this is laid out below.

The removal of all ratings from RWN and the Negative Outlook on Mozambique’s reflect the following key rating drivers and their relative weights: HIGH The removal of the RWN follows the announcement on 17 March of the final terms of the debt exchange to holders of outstanding bonds issued by state-owned Empresa Mocambicana de Atum (EMATUM). The offer seeks to exchange USD697m in outstanding government- guaranteed liabilities (6.305% coupon, twice yearly amortising and 2020 maturity date) for a 10.5% coupon, back-loaded bullet sovereign bond maturing in 2023. Bondholders have until 29 March to agree to the offer. Under Fitch’s Distressed Debt Exchange (DDE) criteria, the final exchange offer does not constitute a DDE. Although there is potentially a material reduction in terms compared with the original contractual terms, primarily because of the maturity extension, the agency does not consider the exchange to be necessary to avoid a traditional payment default on the guaranteed EMATUM bond. Both criteria would need to apply in order for the debt restructuring to be classified as a DDE under our criteria. Although Mozambique’s credit profile has weakened over the past year, Fitch believes that the country would have the capacity and willingness to continue servicing the outstanding EMATUM liabilities. Even as external debt servicing costs have doubled in nominal terms since the start of EMATUM repayments in September 2015, Mozambique has maintained fairly low debt-servicing commitments, reflecting the still highly concessional nature of the debt stock (around 70% of total debt). According to Fitch’s calculations, total public debt service reached 2.6% of GDP in 2015, versus 5.3% for the ‘B’ median. Similarly, interest payments accounted for only 4.8% of revenue in 2015, compared with 15.4% in Zambia and 30.6% in Ghana. Importantly, the IMF continues to judge the risk of debt distress as moderate, in spite of the 33% depreciation of the exchange rate in the past year (85% of total public debt is external and denominated in foreign currency) and the sharp fall in foreign reserves (from USD3bn at end-2014 to USD1.84bn in mid-March 2016). Moreover, the authorities’ decision to seek an 18-month standby credit facility (SCF) with the IMF in December 2015 highlights a commitment to policy reform, including ongoing fiscal consolidation, improvements in debt management, monetary policy adjustment and structural reforms. This should help to procure ongoing multilateral and bilateral debt, in turn, lessening the risks of a fiscal and/or balance of payments crisis.

The assignment of the Negative Outlook highlights the deterioration in key credit metrics since our last full review in November 2015, in particular in terms of rising public debt levels and a weaker external position.   Fitch now estimates gross general government debt (GGGD) at 73% of GDP in 2015, compared with 61% in our previous review and a 16.4pp increase from 2014, in large part as a result of the depreciation of the metical. Further currency weakness is likely to push the GGGD/GDP ratio to over 80% this year, despite a projected narrowing in the fiscal deficit. This compares with a B median average of 52%. Any delays in fiscal consolidation would constitute downside risks to our forecast. The fall in commodity prices has taken a toll on Mozambique’s external finances, primarily via lower capital inflows. Foreign direct investment flows for gas, mining and other resource extraction sectors have traditionally been the main source of funding for the very large current account deficit, but net foreign direct investments (FDI) fell by close to 10pp in 2015, to an estimated 19.5% of GDP. Even as the current account deficit is expected to shrink in the short-term (reflecting import compression in both goods and services and a weaker exchange rate), a worsening investment outlook will maintain pressure on FX reserves in 2016. Fitch forecasts FX reserves coverage (in terms of current account payments) to fall to 2.7 months this year, below the ‘B’ median of 3.6 months.

Mozambique’s ratings will be formally reviewed again on 29 April 2016, in line with Fitch’s published calendar. The review will consider the following factors that could lead to a downgrade: – Worsening public and external debt dynamics. -Deterioration in the level and/or expected trajectory of foreign exchange reserve coverage. -Commodity price changes that jeopardise the development of the LNG sector and erode external debt sustainability. The following factors could lead to the Outlook being revised to Stable: – Fiscal consolidation leading to a decline in government debt/GDP. -Improved investor confidence in the development of natural resource sectors leading to a stronger external position. -Effectively tackling structural weaknesses, including improving the business environment and providing stable growth to lift income per capita.

Fitch assumes that the debt exchange offer will go ahead as proposed. Fitch assumes Brent oil prices to average USD35/bl in 2016 and USD45/bl by 2017.

Bread price

As a result of the rising price of raw materials acquired abroad such as yeast, vitamin and other ingredients, the price of bread may be going up again soon, according to “Domingo”.This will be the second price rise in six months, the first taking place in October 2015 when the government stopped subsidizing the price of flour. As a result, the price of a loaf went up from 6 to 7.5 meticais – a 25 percent rise.Negotiation between the government and the bakeries to find a way of preventing another price rise are under way, but Victor Miguel, the president of the Mozambican Association of Bakers, says that if a solution is not found, bakers will have no choice but to raise prices.

"Not for model of passage"

The rules on school uniform are clear and the school is not a place to model crossings. It was in this way that the Minister of Education responded to the controversy over the regulation requiring students from secondary school to wear long skirts.The minister explained that each level of education is governed by its own rules. "There is a clear description and precise measures to be used to sew the uniforms of primary and secondary education. All these measures aim to clothing savalguardar the girl herself, giving her integrity and make it appear at school in a decent manner. "Jorge Ferrao criticizes adults who defend the rights of children, but do not ensure that they perform their duties."Adults who say do not do A, B and C have organized life, have home, have cars, have a bank account. And they are right. Those children will get no job, no profession, because someone decided to defend them because of their rights. But they never did fulfill their duties. "

NEW INSPECTOR FOR ARMED FORCES

Mozambican Defence Minister Atanasio M’tumuke on Monday swore Maj-Gen Luis Dique into office as the inspector of the Mozambican Armed Forces (FADM). Dique, who was relieved of his duties as commander of the air force last week, is one of the highest ranking officers from the rebel movement Renamo still serving in the FADM. He was recruited into the FADM when it was formed, in 1994, out of volunteers from both the old government army, the FAM/FPLM, and Renamo.Despite Renamo’s return to violence, with Renamo gunmen ambushing vehicles on main roads in the centre of the country, Dique’s appointment shows that some of the senior officers originally from Renamo have opted to remain in the FADM.Other Defence Ministry appointments announced on Monday were Flora Chipanda, as deputy national director of human resources, and Manuela Mecumbusse, formerly head of the general secretariat of the Ministry, as head of the department of documentation and archives.At the Monday ceremony, M’tumuke demanded of Dique, Chipanda and Mecumbusse professionalism and loyalty in their missions.“We want the Mozambican armed forces to continue cultivating peace and stability, and to maintain discipline and a civic attitude”, said the Minister, cited in Tuesday’s issue of the independent daily “O Pais”.

Rule with democracy and not divide the country

Mozambique is steeped in its second armed conflict since the end of the civil war 16 years. In the city, the dialogue between the Government of FRELIMO and RENAMO has long been discontinued to make room for the noise of weapons inside the country.Mozambicans go worn with the blood spilled and the absence of a peace sign at the end of the tunnel. DW Africa interviewed exclusively to the leader of RENAMO, Afonso Dhlakama, who gave his version of the facts.

DW Africa: What is the concern of RENAMO now?

Afonso Dhlakama (AD): The concern RENAMO is the concern of the people, especially the people who have been voting in RENAMO and its leader. To maintain democracy and to avoid the worst in Mozambique, because the people promises that if RENAMO not do something, he, leaderless, can go outside, prefer even from everything and to die, and this can be a mess to Mozambique, the priority of RENAMO, and that is the people, is govern the six provinces where we had the majority in the last elections. Although there has been fraud, we resist too much, we were above all parties. Rule with democracy and not divide the country, as FRELIMO claims or claim the independence of each province, but there peacefully rule governing alternation at the local level. This is the concern of RENAMO and my moment.

DW Africa: RENAMO had promised to rule from March 1 the provinces where he says he won in 2015. Entrentanto election that has not happened so far. Because?

AD: No, RENAMO said the day. He said that from the month of March will start its governance. Today, Monday (03.14.), There are still sixteen days to finish the month. Let's start this governance gradually, we will take account of various districts in each province and establish standards, our administrations. We said that from March we will catch the sticks and drive FRELIMO, no. In fact, March is this month, I can assure you that no-hearing before the 31st of this month RENAMO in the provinces where he obtained the majority, has already taken many districts. It was what we promise and there is nothing that is out of time.

  

DW Africa: In the current clashes, most of the victims have been civilians, according to the press, contrary to earlier confrontation in which most were army soldiers. This leaves many disgruntled citizens, which to some extent makes RENAMO is not as well regarded as the earlier conflict. RENAMO is aware that assessment?

AD: Absolutely not. Ma'am, I was born and raised in Mozambique, Mozambican am and was in FRELIMO before fighting for democracy. The Mozambican people know what is happening, even the Mozambican press knows what is happening. Either frelimista can try to convey a negative image. I will tell you: this conflict resumed a month ago, led by FRELIMO. Since January and February, FRELIMO hired North Korean, trained death squads in Maputo, and this group was spread through the provinces of central and northern. According to FRELIMO, it was to prevent the governance of RENAMO. And these groups went traction cars to the four wheels, which overnight kidnapped members of RENAMO and even supporters. They did this in a district, and the next day, were the bodies in the woods. And the European ambassadors and accredited Africans here know this situation. So RENAMO Defense Department took action made ambushes between the Save River section where come from the south to the center, made another ambush between Save River and Muxungué and also put up between Chimoio and Tete and between Gorongosa and Zambezi river in Caia, to intercept these kidnappers groups. In fact, many were caught and the situation is already better.

But this taking action, FRELIMO created military convoys, forcing carriers to be escorted because the military FRELIMO could no longer go for fear of being attacked, know the capacity of the forces of RENAMO. So the forces of FRELIMO, to pretend, forced the trucks and southern carriers to carry the soldiers. Now, this process of military FRELIMO entering the civilian cars, so RENAMO shoots military cars. Trough that one dies and another, and FRELIMO sends journalists say that RENAMO attacked civilians. You know very well. RENAMO survives thanks to the support of the population. If RENAMO wanted to kill civilians in their areas [it would have done], lives with civilians. I did not have to go choose a road to attack civilian cars because they circulate the districts. RENAMO closed the logistics of government forces, but FRELIMO to launch propaganda, ashamed to be suffering low today can not say twenty, thirty or forty (soldiers) young men or Rapid Intervention Forces die every day, and talk of the population. There are people who are dying, but one or the other may be a victim of shots from either side. The situation that can confirm in Tete province is as follows: The clashes have caused much [of the population] in Nkondedzi, Moatize district took refuge in Malawi. But it was also confirmed that the population fled the atrocities of the government forces.

DW Africa: In this regard the government says there is no war refugees are relatives and supporters of RENAMO who are in Malawi ...

AD: Ma'am, it seems to me that international radio reported the situation a few weeks ago. There is an agency of the United Nations credible, UNHCR, who was in Malawi and saw Mozambican refugees there, including children, and said with his mouth full fleeing the atrocities of the government forces, because when the RENAMO forces clash with forces government, these lead fight and avenge themselves. Burn the houses accusing the local population is supporting RENAMO. Incidentally, this is the [FRELIMO] policy. Two years ago, here in Satundjira in Maringué, people were left without homes. It is the same as happened in Nkondedzi. The STV itself, which is the private agency here, was in Malawi, where she interviewed people. He was in the abandoned areas and confirmed [all]. To be true, it is propaganda Tete governor say they are not refugees, but family RENAMO. It's nearly ten thousand. So to be so are all the ten thousand family [members] RENAMO in such a small place? This advertising is old and no longer adhesive. Are refugees, only FRELIMO not accept that Malawi grant them refugee status, because it is a little shame. Malawi is a small country, has no food to give and so is calling. And now the Deputy Minister of Justice or the like, led to TVM, state television that advertises for FRELIMO, led dinamizadores leaders of the city of Tete to the areas concerned and instructed them in advance to say that the people fled the atrocities of the forces of RENAMO. But this no longer takes anything because everyone knows why those people fled.

But going back, there are many civilians who are dying. There were three ambushes: in Zove area, the section between the Save River and Muxungué, the second ambush in the area of ​​Zonde, Catandica, the section between Chimoio and Tete, and the last ambush was the section between the town of Gorongosa and the bridge on the Zambezi river in Caia. Therefore, in the aera of Nhamapanza and Nhamajaja.

DW Africa: these ambushes, at least one of them died the driver of a carrier, was an ambush against a bus of passengers ...

AD: I was passenger, my sister. This happened in Vonde. A week ago, the machimbombo was the Naji company full of "fademos" Armed Forces of Mozambique, which emerged from Chimoio to Tete. Radio Deutsche Welle can use your sources, you'll have the evidence. I do not have to cheat and not to advertise. Then the driver was hit, I know it was a Saturday at nine. There was no member of the public, died thirty-nine "fademos". May die one and another member of the public, we are not doing the holy war, you can catch one, we have to say yes. Now say that RENAMO is attacking civilians not because it would be a serious problem, RENAMO survives thanks to the support of the population.

DW Africa: Also during the first clashes, the matter RENAMO was managed by the Ministry of Defence, but at some point went to the Interior Ministry. When there is fighting who answers is the police. Do you think this is an attempt to minimize the status of RENAMO or transform RENAMO into a kind of unruly or simply marginal?

AD:. There they entered elements RENAMO after the General Peace Agreement, in Chissano time, he did not like, as well as all strategists FRELIMO. They saw that the "fademos" (Armed Forces of Mozambique) would not serve the interests of FRELIMO. She created [other] army as an alternative, the Police Rapid Intervention, now FIR, Rapid Intervention Forces, controlled by the Interior Ministry. This is a 100% Army [FRELIMO] because there is no mixing with RENAMO. It is an army made up of former soldiers who fought against RENAMO for 16 years, and the young people are incorporated in the army they do not belong to any police. It is an own army because "fademos" have a lot of mistrust.While our men are not generals, nor are considered FRELIMO distrusts "fademos" because they did not accept this control, and when they are deployed, run away, while the FIR is controlled by the Interior Ministry and is not a police . This FIR is an army authentic, with more conditions than the "fademos". They have tanks, heavy weapons, earn well and have their own barracks. There is sometimes some generals "fademos" to command the FIR. It's what's happening. Not to minimize RENAMO or to despise and assign RENAMO a statute of bandits. No, on the contrary. It is that FRELIMO suffered casualties and "fademos" are the alternative to the FIR. But even so, the FIR is also suffer losses. Currently, FRELIMO has not effective. He tried to launch offensives in Zambezia, Nampula and here near the Gorongosa, but we put them all out of action.