A Lot Of Peace

 

Vulcan for $270 million

 Vale (NYSE: VALE) is selling its Moatize coal mine and the Nacala logistic corridor, a multibillion-dollar port and rail project in Mozambique, to Vulcan Minerals (TSX-V: VUL) in a transaction valued at $270 million. The Brazilian mining giant said it will receive $80 million immediately and the rest at the close of the deal. There will also be a 10-year royalty contract, it added.

“This is another accomplishment on our commitment to reshape our company, focusing on our core businesses,” CEO Eduardo Bartolomeo said in the statement.Vale’s move is part of a growing shift away from coal among the world’s biggest mining companies. The fossil fuel is being gradually phased out of the global energy mix as investors increasingly demand environmental commitments from corporate leadership.

The Rio de Janeiro-based company has set as goal to be carbon neutral by 2050. To reach that target, it plans a 15% reduction by 2035 in so-called scope 3 emissions, those generated when customers burn or process its raw materials. The sale of Moatize is one step towards meeting that goal, it has said. The Nacala Logistics Corridor connects the Moatize mine in Mozambique’s north-west Tete province via a 900km rail line to the deep-water port of Nacala in the east, passing through Malawi on the way.

The mine, which started production in 2011, has been a source of ongoing problems and losses for Vale.The company fully impaired Moatize in 2019, after taking a $2.4 billion charge on the operation in 2016.The Moatize mine is expected to reach an annual production rate of 18 million tonnes in 2022. The complex has a capacity of 22 million tonnes of coal a year, including metallurgical and thermal types.

Financial close solar power project

The London-based independent power producer Globeleq (an institution formed by Norwegian and British funds) on Tuesday announced that it has reached financial close on the 19 megawatt peak Cuamba Solar photovoltaic project in Mozambique. This will include the country’s first grid-scale battery storage system with a capacity to store two megawatts (seven megawatt hours). The 36 million US dollar project will be constructed in the town of Cuamba, in the northern province of Niassa and is being developed in partnership with Mozambique’s publicly-owned electricity company EDM and the company Source Energia.

Once operational, it will provide enough electricity for EDM to supply 21,800 consumers over a 25 year period. According to a statement from Globeleq, over the life of the project, it is expected to avoid the equivalent of more than 172,000 tonnes of carbon dioxide emissions.The Emerging Africa Infrastructure Fund (EAIF) will provide 19 million US dollars in debt funding, with the Private Infrastructure Development Group giving a grant of seven million US dollars and CDC (the British state development finance institution) contributing a one million US dollar grant towards the battery storage system.EDM chairperson Marcelino Gildo pointed out that “this project is a demonstration of EDM’s commitment to providing sustainable solutions to speed up energy access to Mozambicans. In compliance with the Government’s five-year plan to introduce 200 megawatts of renewable energy, EDM is at the forefront of the energy transition in line with the Paris Agreement”.

This sentiment was echoed by the chief executive of Globeleq, Mike Scholey, who stated, “we fully support the Mozambican government in their initiatives to support the Paris Agreement and provide its citizens with reliable and clean alternative energy options”.The construction of the power plant began earlier this year and will be the third solar power station in the country. The first was built in Mocuba, in Zambezia province, and has been in operation since 2019, whilst the second, at Metoro, in Cabo Delgado, is still under construction.The first power from Cuamba is expected to flow in the second half of 2022. Globeleq is 70 per cent owned by CDC and 30 per cent owned by the Norwegian Investment Fund for Developing Countries, Norfund.

LAM carries out first commercial flight to Chongoene

The first flight took place on Saturday, December 18, with the first 20 passengers disembarking at the air terminal in Chongoene, Gaza province, receiving a commemorative certificate. For its first commercial flight into the Filipe Jacinto Nyusi Airport, LAM resorted to a South African operator providing a 35-seat aircraft. LAM’s initiative aims to attract tourists and businesspeople who want to cut travel time to Gaza province from Johannesburg or Maputo. LAM general director João Carlos Pó Jorge said that, after the certification of the Filipe Jacinto Nyusi Airport, the company decided to explore the route in response to the demand of passengers looking beyond tourism and other businesses.

“We are exploring the route to see what is viable for the aviation market, especially on this recently opened route. We opened the market with this flight and noticed that there was some interest in purchasing tickets. To mark this occasion, we decided to honour the first 20 passengers with a certificate of recognition,” Jorge said. In turn, LAM’s commercial director, Luísa Ferreira, explained that, with the launch of the exploration of the route, the national flag airline intended to cover all points in the country connecting with FJN Airport.

“It makes sense to explore this potential market. I think this is an excellent strategy. We are aware of the challenges that the route can bring. At this moment, we started operating commercial flights with a weekly frequency, on Saturdays, depending on market demand, which start at JHB or vice versa. If the market is receptive, we will introduce a second weekly flight,” Ferreira explained Among the passengers, South African citizen Ane Mari Pienaar said that the LAM initiative, originating in Johannesburg, with a stopover in Maputo, and having as final destination the city of Xai-Xai, would improve travel times for tourists who wish to fly to Gaza province.

“I come from South Africa and go to Xai-Xai. I am going to Xai-Xai FJN Airport for the first time. It’s always safer and time-saving to go by plane compared to by land. It’s better,” she explained. Sidónio Marco, who was traveling with his children, said: “It is gratifying to be part of the first group of passengers to disembark at the newly built airport, which reveals a lot about the development of our country”.

‘Urgent action needed to avoid catastrophe’

Mozambique is one of several countries in Africa where “urgent action is required to avoid catastrophe” arising from active conflicts on the continent, according to a report from the African Union’s Peace and Security Council (PSC).

Northern Mozambique, Libya, South Sudan, the Central African Republic, Ethiopia, and the northwest and southwest regions of Cameroon “are six African trouble spots to watch in 2022,” the institution said in a report released on Monday. In the case of northern Mozambique, “a more holistic approach is needed to address the socio-economic challenges of communities in Cabo Delgado province and more recently Niassa, where the Islamic extremist insurgency has expanded in recent weeks.

“Also of concern are the regional ramifications of the Cabo Delgado insurgency, including links to countries such as Tanzania, and the possible spread to create a larger-scale extremist axis along the continent’s eastern flank,” the PSC said.

The extremist insurgency in Cabo Delgado has been ongoing since late 2017. “The slow response led, early on, to the deterioration of the situation,” the report considers. Since last July, a deployment of Rwandan troops based on a bilateral agreement and then a multilateral deployment from the Southern African Development Community have helped to quell the insurgency and restore humanitarian access to affected populations, however, “while the military response seems to have pushed back the insurgents [who in recent weeks have been particularly active in neighbouring Niassa province, but also Cabo Delgado], a more holistic approach is needed to address the socio-economic challenges of the communities,” the text stated.

Praises Mozambique for prudent policies

The International Monetary Fund (IMF) has praised Mozambique’s prudent economic management at a time when the country faces severe challenges. Following an IMF Staff Visit to Mozambique, which concluded on 16 December, a statement released by the head of mission, Alvaro Piris, pointed out that “the Mozambican economy is recovering from a sharp contraction, following several years of economic shocks”. Piris added that “a modest but broad-based recovery is taking hold in 2021. After real GDP contracted in 2020 – the first contraction in 30 years – growth resumed in early 2021 and is expected to reach 2.2 per cent for the year. Robust growth in agriculture and mining was complemented by a modest recovery in services as COVID-related restrictions were eased. Seasonal factors, supply-chain constraints, and international food and fuel price increases led inflation to rise to 6.8 per cent year on year in November, remaining within the Bank of Mozambique’s target of less than ten per cent”.

Mozambique has been hit by the twin crises of the Covid-19 global pandemic and islamist terrorism in the northern province of Cabo Delgado, and Piris pointed out that “the Covid pandemic, and the conflict and humanitarian emergency in the north of the country are intensifying fragility”.

 “Two large waves of Covid infections in the first and third quarters of 2021 prompted strict confinement measures, lowered incomes, and resulted in the loss of schooling for an already vulnerable population”, Piris added. “Terrorist attacks have caused thousands of deaths and displaced more than 800,000 people in the northern province of Cabo Delgado, with many in the northern region suffering food insecurity”. In addition, he warned that “while the authorities have managed prudently and successfully addressed Covid and security-related challenges, including with international support, concessional financing has now declined, and high public debt and tight financing constraints should be addressed through fiscal measures”.

 

“A tight monetary stance”, the statement continued, “has helped keep inflation in check and preserve macro-economic stability, but limits credit growth and scope for the exchange rate to facilitate economic adjustment. Reducing fiscal financing needs through a moderate adjustment that does not impair recovery will help put debt on a firm downward trajectory and allow for a better policy balance”. Looking to the future, Piris noted that “the longer-term outlook is shaped by LNG (Liquefied Natural Gas) production, with downside risks. Growth is expected to rise further in 2022, reflecting a broader recovery of the non-LNG economy. In the longer term, non-LNG growth is projected at 4 per cent”. Piris added that growth will rise sharply as LNG projects begin production, “currently expected in 2023 and 2026”. However, he also pointed out that “while agricultural performance may be stronger than envisaged in 2022, considering expected favourable meteorological conditions, new waves of Covid infection could prompt confinement measures, while firms’ (including state-owned enterprises’) balance sheets have been weakened by the crisis, reducing the scope for investment, and potentially weakening banking sector asset quality over time”.

Another danger to the economy is the “vulnerability to natural disasters and the effects of climate change”. Piris described this as “a recurrent vulnerability, as is renewed deterioration of the security situation that could further delay or stop the LNG projects”. The team leader also revealed that the IMF will soon enter into discussions with the government to support its programme with an Extended Credit Facility, which “could help ease financing pressures as the economic recovery takes hold, support the authorities’ agenda in poverty reduction and restoring sustainable and equitable growth, while also helping catalyse additional development financing”.

 

Lions return to Zinave National Park

A lion has been spotted in the Zinave National Park, in the southern Mozambican province of Inhambane, for the first time in several decades, according to a press release from the South African-based Peace Parks Foundation. The Peace Parks Foundation revealed that a camera trap has recently captured an image of a male lion, which it states was drawn to the prey-rich habitat of the 18,600 hectare sanctuary that has been established within the park. For the Foundation, this is evidence of the “remarkable restoration of this once-silent wilderness” with “the establishment of healthy ecosystems that are naturally attracting Africa’s top predator”.

Over the last decade, the park has undergone intensive restoration and rewilding and has seen over 2,300 game animals reintroduced into the sanctuary including 200 elephants. In addition, four spotted hyenas and two leopards were recently relocated to the park. This relocation programme was accelerated following the signing in 2015 a 20-year co-management agreement between Mozambique’s National Administration of Conservation Areas (ANAC) and the Peace Parks Foundation. The eventual goal is to rewild the entire 408,000 hectare park and to develop eco-tourism to cover the operating costs.

Zinave National Park forms part of the Greater Limpopo Transfrontier Conservation Area, which also includes Banhine and Limpopo national parks in Mozambique, Kruger National Park in South Africa, Gonarezhou National Park in Zimbabwe and various other state and privately-owned conservation areas across the three countries. According to the chief executive of the Peace Parks Foundation, Werner Myburgh, the appearance of lions in Zinave provides evidence that the goals of setting up the Greater Limpopo Transfrontier Conservation Area are being met. He said “one of the stated objectives was to enhance eco-system integrity and natural ecological processes and remove artificial barriers impeding the natural movement of wildlife”.

Myburgh added, “with the continued rewilding and steady development of the three national parks in the Mozambique component, it was only a matter of time for wildlife to start moving naturally between these protected areas, but to see this happening now in reality, is a momentous conservation milestone”. For ANAC’s Maria Cidalia Mahumane, “this is an extremely exciting moment for Zinave and for conservation in Mozambique as a whole. The extensive efforts that ANAC and the Peace Parks Foundation have directed into restoring and managing the park have led to some incredible outcomes, and the presence of lions is another clear indicator of the ecological health of Zinave”.

The Peace Parks Foundation’s project manager Bernard van Lente explained that “destabilisation and lack of prey in an eco-system are the main reasons for the absence of large carnivores in an area. Since the park started animal reintroductions, and because of successful protection efforts, the game numbers have grown rapidly and the eco-system has stabilised sufficiently to host apex predators once more”. He added, “with the abundant prey and safe environment available, the fact that the park is able to sustain large carnivores is very encouraging, and it will not be too surprising if more lions, leopard, wild dog and cheetah start to make sporadic appearances, over and above the carnivores that are set to be reintroduced into the park over the coming years”. The Peace Parks Foundation pointed out that over the last century lions have disappeared from 95 per cent of their historic range and lamented that “over 200,000 lions once roamed across Africa. Now, only an estimated 23,000 to 39,000 remain, due to habitat destruction, human-wildlife conflict, poaching and poisoning”.

FNB Mozambique steps up security

FNB Moçambique has just increased the security of online transactions with its Smart, Platinum, Gold and Signature credit and debit cards. ‘3D Secure’ is a solution designed to increase the security of online payments and foil attempts at online fraud. 3D Secure is an authentication method designed so that FNB customers can confirm payments relating to their purchases made online, by entering a one-time password (OTP) sent by SMS to the contact associated with their card.

“It is a sign of the investment that FNB Moçambique is making in the security and protection of its customers’ transactions, adjusting to the growing requirements and needs of digital payments and the e-commerce environment. We will continue to reinforce these solutions to increase the range of payment options available to our customers, always with security as the main pillar,” said Sérgio Gomes, chief operating officer of FNB Moçambique.

In practical terms, when making online purchases with the FNB card, the customer, in addition to entering the normally requested data (card number, expiry date and CVV code), will enter the OTP code sent to the contact via SMS as the final confirmation step. The OTP – a series of numbers – is only sent to the contact associated with the card holder. 3D Secure has been automatically activated on all FNB cards and does not entail any additional cost for customers. The authentication tool was exclusively designed to ensure that the payment of online purchases with an FNB card is, in fact, carried out by the respective cardholder.

 

Desportivo de Nacala inaugurates renewed

The Bela Vista stadium rehabilitation creates a facility that does justice to the challenges of a competitive team at regional level. Following the financing and completion of the rehabilitation works at Clube Desportivo de Nacala, KARMOL on December 9, 2021, inaugurated the new Bela Vista stadium in Nacala.

Funding for the club has covered the rehabilitation of the perimeter wall, central stand, public toilets, changing rooms and restrooms, and funded acquisition of branded sports equipment for the players, such as soccer boots, slippers, travel bags, goalkeeper gloves and braces.

The initiative sits within the framework of promoting sport as a window of access to health and social well-being of KARMOL’s corporate social responsibility programme and reflects its commitment to integrated local community development. The inauguration will hopefully offer the youth of Nacala a new perspective, taking them off the street and onto the sports field.

“The rehabilitation of the Bela Vista field by KARMOL represents a gesture of nonconformity by a company that believes in a club that can go even further if it has the infrastructure to implement its projects,” said KARMOL representative Çumhur Aksoy. “The rehabilitated field, in addition to stimulating the philosophy of the professional game, could also be a gateway for new talent.”

KARMOL, co-owned by Turkish Karpowership and Japan’s MOL, owns and operates its own liquid natural gas (LNG) fleet. With abundant expertise and experience in the field, it aims to serve as a one-stop shop for LNG solutions as a single supplier across the entire value chain, including supply, transportation, delivery, regasification and LNG power generation. Joint company KARMOL’s first project is in Mozambique.

 

 

 

Covid-19: Control measures may be revised

The prevention measures approved by the government to contain the spread of Covid-19 in Mozambique may be readjusted in the coming days, in response to a possible worsening of the epidemiological situation in the country. The director-general of the National Institute of Health (INS), Ilesh Jani, said that the sector was closely following the evolution of the health situation in the country and in the region. He warned that, despite the country going through a period of low transmission, with a positivity rate below one percent, a fact allied to the reduction of hospitalizations and deaths, the situation deserves constant attention. He said that Mozambique had been taking restrictive measures based on the principles of proportionality, reasonableness, gradualism and the best available scientific evidence, and the restrictions in place correspond to the level of the pandemic.

“We are monitoring the various epidemiological indicators and the system used to define the restriction measures and, if the trend is for the epidemic to worsen, clearly the measures could be readjusted,” he said.

He added that South Africa, especially the province of Gauteng, which borders Mozambique, was beginning to register a significant increase in the number of cases, though without this being reflected in any rise in hospitalisations. The increase in cases in this region comes at a time when a new Covid strain, Omicron, was discovered, with two suspected cases in Mozambique. Ilesh Jani said that national health authorities had stepped up controls at entry points, including testing for Covid-19, adding that Mozambique was further strengthening genomic surveillance as regards new variants.

In parallel, the authorities are accelerating the mass vaccination of intended target groups, intensifying surveillance of Covid-19’s prevention measures and preparing the health system for an eventual ‘fourth wave’ of the disease. The Delta variant, discovered in India, continues to dominate the Covid-19 cases reported in recent months in the country, Jani reported.

Mozambique, he said, already has the capacity for sequencing the genome of the new coronavirus, having completed the training of health professionals and laboratory technicians and allocated the necessary equipment. Meanwhile, health authorities warn that the number of infections has been on the rise. Between Tuesday and Wednesday, 47 individuals tested positive for Covid-19, with three new hospital admissions recorded and 24 patients designated ‘recovered’. The country had, by Wednesday, seven Covid hospitalisations, all in the city of Maputo; 111 active cases and a cumulative of 1,941 fatalities due to the virus.