Eleven people died and a dozen were injured in a collision on Sunday between a South African registered double cab pick-up truck and a minibus on the EN1 highway at Maluana, in the district of Manica, about 70 kilometres out of Maputo.According to Monday’s edition of the daily newspaper “Noticias”, the accident took place in the early hours of Sunday. The police have said that the accident is likely to have been the result of excessive speed and poor overtaking.The Toyota Hiace minibus had left from Praca dos Combatentes in Maputo for Manica town whilst the Toyota Hilux had left Xai Xai on its way to South Africa.
The drivers of the two vehicles escaped uninjured.
The Director General of the government’s National Traffic Institute (INAV), Taibo Issufo, said that nine people died in Maluana with the other two victims dying in the ambulance on the way to the district hospital in Manica.Issufo lamented that motorists do not respect the elementary rules of driving despite numerous publicity campaigns.Issufo stated that the new Highway Code, coming into force on 23 September, provides for stronger penalties for speeding and driving under the influence of alcohol, with increased fines and the threat of jail sentences of between three days and six months.

Mozambique has been ranked 126th by the International Finance Corporation in its report “Doing Business 2011, Making a Difference for Entrepreneurs”.This is a rise of four places since last year’s index, which ranks 183 countries according to business regulations and protection of property rights.
Mozambique is the world’s twelfth most improved country in terms of making it easier to do business over the last five years. In regards to starting a business, Mozambique is the sixth most improved country between 2009 and 2010.The report also praises the country for legislation protecting investors, with company law being updated to follow global good practices.The report put Singapore at the top of the overall ranking for ease of doing business. It is followed by Hong Kong, New Zealand, United Kingdom, United States,Denmark, Canada, Norway, Ireland and Australia.Mauritius (20th) is the highest ranking African nation, followed by South Africa (23rd) and Botswana (52nd).The world’s worst countries in which to do business were all African, being Burundi (181st), Central African Republic (182nd) and Chad (183rd).In relation to other members of the Southern African Development Community (SADC), Namibia dropped one place to 69th, while Zambia rose from 84th place to 76th place this year. Seychelles came in 95th position.The other SADC countries are Swaziland (118th), Tanzania (120th), Malawi (133rd), Lesotho (138th), Madagascar (140th), Zimbabwe (157th), Angola (163rd) and Democratic Republic of Congo (175th).The rankings for the Lusophone nations were: Portugal (31st), Cape Verde (132nd), East Timor (174th) Guinea Bissau (176th) and Sao Tome and Principe (178th).This year’s report is the eighth “Doing Business” published by IFC. It highlights economic reforms carried out to improve the business environment, and points out that between June 2009 and May 2010 governments in 117 countries introduced 216 economic reforms.The report states that “a vibrant private sector – with firms making investments, creating jobs and improving productivity – promotes growth and expands opportunities for the poor”.It argues that “enabling private sector growth - and ensuring that poor people can participate in its benefits — requires a regulatory environment where new entrants with drive and good ideas, regardless of their gender or ethnic origin, can get started in business and where firms can invest and grow, generating more jobs”.

The network of overground metro trains and electric buses linking the cities of Maputo and Matola and the district of Marracuene could start operating by the end of 2013 if the Government approves the feasibility study presented to it in Maputo on Saturday by the Italian company SALCEF.The feasibility study covers the construction and operation of the overground metro and electric buses. It also looks at the installation of a multimodal system, where commuters would leave their personal vehicles in car parks and catch either electric buses or metro trains to their destinations.According to the feasibility study, the whole system will be fully operational by 2026. However, the in the first phase there will be a network of buses and metro trains liking Matola, Maputo and Marracuene.Transport Minister Paulo Zucula said that the government would reply with detailed comments within a week.The government will analyse whether the proposed system put forward in the feasibility study would meet the demands of commuters, prior to both parties returning to the negotiation table to discuss financial matters.According to SALCEF, the implementation of the first phase is budgeted at 955 million US dollars, of which 40 per cent will cover the cost of purchasing rolling stock, traffic management systems and safety equipment.SALCEF points out that the cost is much lower than it would be in other parts of the country due to the existence of rail lines linking Matola, Maputo and Marracuene.According to the projections in the feasibility study, a passenger would pay 50 meticais (about 1.5 dollars) for a single ticket to reach any destination in Maputo, Matola or Marracuene.This project has the potential to help overcome the transport crisis in Maputo and Matola, which affects over 200,000 commuters daily.

The installation of new equipment in the cement factories in Matola and Dondo has been completed. As a result, Cimentos de Mocambique expects an end to cement imports.The Commercial Director of Cimentos de Mocambique, Francisco Rafael, told the daily newspaper “Diario de Mocambique” that during the installation work the company imported cement from Cimentos de Portugal (Cimpor).Rafael revealed that the company will shortly improve the process for bagging cement at its factory in Nacala.“After the end of the upgrade work at the factory in Nacala, the capacity will be created to supply the market in the south, centre and north of the country. The factory in Matola will supply the south with an average of 50,000 sacks daily. The factory in Dondo will supply 20,000 sacks for the centre of the country, and 15,000 sacks will be supplied for the north through the factory in Nacala”, said Rafael.He stated that “imports have already stopped, apart from some cement that was recently unloaded for the centre of the country”.He acknowledged the existence of price discrepancies, but explained that the company has a table of prices applicable to each of its factories. However, “we only recommend to our clients the resale price, which is not binding. In a market that is supposed to be free and open, it is up to the official trade bodies to control the prices and correct any discrepancies”, said Rafael.Currently the country has five cement factories producing a total of 1.3 million tonnes annually.Cimentos de Mocambique is the largest producer with an output of 600,000 tonnes per year. However, with the new equipment, production levels will increase to just over a million tonnes per year.

Mozambique’s Minister of Housing and Public Works, Cadmiel Muthemba, announced last week in the city of Beira that the government is considering introducing a new law requiring foreign companies competing in public tenders to hire domestic subcontractors.Cited in the paper “@ Verdade”, the Minister explained that this is likely to represent between 15 and 20 per cent of the contract.Muthemba said that the ministry is looking at amending existing legislation for the introduction of a binding legal framework on subcontracting.The plans were disclosed during a meeting between the minister and domestic contractors for construction work in Beira. The decision is part of the strategy for the development and empowerment of domestic contractors drawn up by the government six years ago.Muthemba was reacting to concerns raised by the chairman of the Association of Public Works and Construction Contractors of Sofala (AECOPS), Gabriel de Oliveira, who criticised government inaction on empowering domestic contractors.Gabriel de Oliveira added that while large foreign companies are growing, small and medium sized domestic companies continue to shrink.The Minister explained that most of the problems arise because of limitations imposed on the government. He pointed out that a number of public works are financed by cooperation partners who impose certain conditionalities, such as the requirement that the work is carried out by a company from the donor country.He said that with the exception of projects financed by the World Bank, which doesn’t impose any restrictions, most lenders demand that the contracts to be awarded to companies from their countries.The minister gave an example of a road construction contract awarded to the Mozambican company “CETA”. The road failed to materialise because the funder, the Portuguese government, demanded that the contract be given to a Portuguese company.“That is why we are looking into the possibility of creating a legal instrument forcing foreign companies that are winners of public tenders to hire domestic companies to carry out part of the contract”, stressed the minister.While recognising that this is already happening, Muthemba said that he wants this to take place on a regular basis.The Minister also stressed that he is not in favour of partnerships between Mozambican and foreign contractors, arguing that foreign companies do not allow the full participation of domestic companies in the management of the contracts. “They only need us because of our relationships and acquaintances within the state institutions, and nothing else”, deplored the Minister.

The Ministry of Education and the World Bank on Monday in Maputo signed two agreements covering 161 million US dollars of support for the education sector.The first agreement is through the World Bank administered Education For All – Fast Track Initiative Catalytic Fund (EFA-FTI CF) for 90 million dollars for the period until 2014. The second agreement covers an International Development Association (IDA) credit of 71 million dollars to support the government’s strategic programme for the years 2011 to 2015.The funds will be administered through the Education Sector Support Fund (FASE) and managed by the Ministry of Education.The World Bank’s Regional Director, Laurence Clarke, said that the accords are “aligned with the priorities of the Mozambican government for the education sector and fall within the ambit of the search for knowledge, which is a crucial factor in the fight against poverty”.Clarke pointed out that “the World Bank’s support for the education sector has registered significant increases in recent years. It is also important to note that many of our partners are also providing resources to the FTI Catalytic Fund that today received 90 million dollars for the execution of the strategic plan for education, particularly at primary and secondary level”.According to Clarke, “these funds are intended to finance actions that will guarantee access to quality education, and improve the quality of education through teacher training, direct support to schools, and the distribution of school equipment and books”.The funds also aim to strengthen planning, administration and management systems, which requires the establishment of a strong system of monitoring and evaluation linked to a strong system of accountability.He appealed to those that are responsible for managing the funds to make good use of them to achieve the desired results.“It is our expectation that the funds will visibly contribute to improving the education results of the children”, he concluded.The Minister of Planning and Development, Aiuba Cuereneia, explained that the projects covered by the funds are part of the government’s five year plan for education.He stated that these accords are testimony to the excellent collaboration between the Mozambican government and its partners in FASE.Other donors to FASE include Ireland, Finland, Germany, DFID (Britain), Portugal, Spain, UNICEF, CIDA-Canada, the Netherlands, and DANIDA (Denmark). Italy and Flanders began donating to FASE in 2011, but the Netherlands will stop its contribution this year and DANIDA will end its participation next year.

Mozambique’s Water Supply Investment and Assets Fund (FIPAG) has connected 34,689 households to piped water over the past six months. This exceeds the target set by the government’s Economic and Social Plan (PES) for the entire year by six per cent, according to the FIPAG chairperson, Nelson Beete.Beete told the daily newspaper “Noticias” that “during the first half of this year we surpassed the target set in the Economic and Social Plan to connect 32,000 households to piped water”.To pass this target FIPAG invested 400 million meticais (about 14 million US dollars), most of which came from the Mozambican government.Nelson Beete stated that passing the target was due to the revitalisation of Aguas de Mocambique, in which FIPAG is the major shareholder, coupled with institutional capacity building and the government's decision to reduce the cost of new household connections.Besides new connections, FIPAG has invested in pipelines and water treatment stations.It has constructed a water treatment station at Chicamba which will supply the towns of Manica and Chimoio and the village of Gondola in the central province of Manica.FIPAG is also upgrading the water supply system in Maputo, which will improve the provision of water to the cities of Maputo and Matola and the town of Boane. By the end of this year, the percentage of people living in Maputo, Matola and Boane with access to safe drinking water should rise from the current 40 per cent to 73 per cent. In absolute terms, that means that the number of people with access to clean water in the area will rise from 670,000 to 1.5 million.Other major works include the rehabilitation and expansion of the water supply systems in Lichinga and Cuamba, in the northern province of Niassa, and the construction of a distribution centre in Quelimane, capital of the central province of Zambezia.The government’s Five Year Plan states that clean water should reach at least 70 per cent of the population within the next three years.Currently, about half of the population of just over 20 million people has access to clean water.

The trade union committee for workers of the private security company Group Four Securicor (G4S) has suspended the strike that was due to begin on Wednesday in Maputo.The suspension was agreed on Monday after a meeting between the company’s workers and the union, where it was decided that the conditions did not exist to launch the strike, which the Minister of Labour on Friday warned would be illegal.The union committee secretary, Boaventura Mutemucuio, told the daily newspaper “Noticias” that the strike was postponed to protect the integrity and safety of the workers, and to give more time for negotiations with the company.Mutemucuio said that “we feared for our safety. With our proposed action already being considered illegal, we have decided not to go ahead with the strike to avoid the possibility of our colleagues being attacked for allegedly disturbing public order”.The central concerns of the workers are the reduction in wages resulting from shorter working hours that are being introduced by the company, and the introduction of measures by G4S that are still under negotiation. The workers are also calling for a new formula for overtime pay, more rest time between shifts and other improvements to working conditions.In April about a hundred angry off-duty security guards demonstrated outside the G4S offices in Maputo, claiming that they had suffered unjust deductions from their wages, including their holiday pay.That demonstration was brutally attacked by members of the riot police, leading to many of the workers receiving injuries. A Commission of Inquiry set up by the Interior Ministry to investigate the attack reached the preliminary conclusion that the riot police “acted in bad faith in the use of excessive force”.