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THE MOZAMBICAN INVESTOR Produced by Adrian Frey
The #1 Newsletter for top business, investment, and legal news in Mozambique 01 November 2011 262nd Issue Sponsored by
***Become a fan of Club of Mozambique on Facebook here!*** CREDIT CARD SKIMMING As you know, the number of incident of bank fraud has been increasing in Mozambique and in the neighbouring South Africa affecting some of our colleagues and sometimes involving (very) significant amounts of money. Credit card skimming is one of the main problems at the moment. Here you have very basic recommendations which can mitigate this risk: ‐ Before using an ATM, make sure there are not any devices attached to it; ‐ When you're using an ATM, cover your hand as you type your PIN to keep a camera from catching a view of what you're typing; ‐ If the keys seem hard to push, eject your card and use another ATM; ‐ Never accept help from anyone when you are using an ATM machine; ‐ If someone speaks to you when you are using an ATM machine just ignore him/her remove your card and do not insert it again; ‐ Always stay in sight of your card when you are paying in a restaurant, hotel, gas stations, etc; ‐ Watch your accounts frequently.
MOZAMBIQUE ADB to provide 90 million dollars in budget support The African Development Bank (ADB) will disburse 90 million US dollars in direct support for the Mozambican state budget over the three year period 2011‐2013. The agreement to this effect was signed in Maputo on Monday by the Minister of Planning and Development, Aiuba Cuereneia, and by the ADB representative in Mozambique, Joseph Ribeiro. Read more Hundreds march over pensions in Maputo More than 700 Mozambican civil war veterans and their families gathered in the country's capital Maputo on Wednesday during a second day of protests to demand pensions from the government. The group of veterans, widows, children, and siblings camped outside the prime minister's office on Tuesday, singing revolutionary songs and brandishing placards. Read more. Currency smugglers suspects named The Mozambican police have announced that the two men arrested on Wednesday at Maputo International Airport as they tried to smuggle over 600,000 US dollars in banknotes out of the country are both Pakistani citizens, named M. Adnan (31) and M. Ahmed (41). According to a report in Saturday’s issue of the Maputo daily “Noticias” the two men live in the Central neighbourhood of Maputo. They say they have been working in Maputo for five years, selling second hand cars. Read more. Lots drawn for positions on Municipal ballot papers Mozambique’s ruling Frelimo Party will occupy the top position on the ballot papers for the three municipal by‐elections to be held on 7 December, to elect mayors for the cities of Quelimane, Cuamba and Pemba. Drawing lots was simple, since only three parties have put forward candidates – Frelimo, the Mozambique Democratic Movement (MDM), and the Mozambican Humanist Party (PAHUMO). Frelimo and the MDM are standing in all three municipalities, and Pahumo only in Pemba. The result of the draw is that Frelimo is at the top of the ballot paper, the MDM in second position, and Pahumo at the bottom. Read more Labour Ministry cancels work permits The Mozambican Labour Ministry has cancelled, with immediate effect, the work permits of two Brazilian managers who worked for Miramar Communications Network, which is part of Record Television, owned by the enormously wealthy Brazilian pentecostal sect, the Universal Church of the Kingdom of God. A press release from the Ministry states that when labour inspectors visited the Miramar headquarters in central Maputo, they found that Mozambican employees had suffered repeated incidents of mistreatment by their foreign managers, particularly the Chief Executive Officer, Fernando Henrique Teixeira and his colleague Edilson Magno da Silva. Read more
Read more of the latest Government stories making headlines here. BUSINESS Mozambique to start exporting cotton fibre once again Mozambique plans to start exporting cotton fibre once gain after a halt of several years and the first lot for export will be made up of 1,700 tons of cotton fibre processed by China Africa Cotton, Mozambican daily newspaper Notícias reported. The company, which owns an industrial unit that has been operating since the beginning of this year in the city of Beira, has acquired more than 5,500 tons of raw cotton from producers grown in the 2010/2011 season, manager Florindo Vicente da Cruz Coimbra told the newspaper, adding that this first lot would be sold to Chinese companies. Read more Assembly exempts animal feed from VAT The Mozambican parliament, the Assembly of the Republic, on Thursday unanimously passed the first reading of a government bill exempting the raw materials for animal feed from Value Added Tax (VAT). Introducing the bill, Finance Minister Manuel Chang said the purpose of the exemption was to encourage the development of the animal feed industry. VAT is normally charged at the rate of 17 per cent – scrapping it on animal feed will come as a great relief to livestock farmers, and particularly to poultry breeders. Read more Government wants fishermen to move from the coast The Mozambican government intends to encourage artisanal fishing on the high seas, in an attempt to reduce the pressure from small scale fishermen on coastal fishery resources. To this end, the Council of Ministers (Cabinet), at its meeting on Tuesday, ratified a loan agreement with the OPEC Fund for International Development (OFID), to the value of 13.5 million US dollars which will support the Artisanal Fishing Promotion Project (PROPESCA). Read more Read more of the latest Business stories making headlines here. INVESTMENT China Development Bank to set up credit line for Mozambique Mozambique’s Millennium bim bank is set to sign an deal with the China Development Bank for the creation of a credit line totalling US$100 million to be applied to investments in Mozambique, said the chairman of Portuguese bank, Banco Comercial Português (BCP). Cited by the Mozambican press, Carlos Santos Ferreira, chairman of BCP the bank that owns 66.69 percent of Millennium bim, declined to give further details saying that the credit line was still a matter of negotiation. Read more
China ranked 6th on list of Mozambique’s top investors in first half of year China ranked sixth on the list of countries that most invested in Mozambique in the first six months of the year, with South Africa taking first place, the Centre for Promotion and Investment (CPI) has announced in Maputo. In the first half‐year, FDI in Mozambique totalled just over US$200 million. Chinese companies invested US$7.2 million versus the more than US$64 million by South African companies. Read more Read more of the latest Investment stories making headlines here. FINANCIAL EXCHANGE RATES Brought to you by the Bank of Mozambique Last week (25 October 2011) This week (01 November 2011) Currency Buy Sell Currency Buy Sell USD 26,93 27,13 USD 26,93 27,13 ZAR 3,38 3,40 ZAR 3,46 3,48 EUR 37,33 37,61 EUR 37,69 37,97 MINING AND ENERGY Further interest in Mozambican mining sector During the Commonwealth Business Forum, which ended in the Australian city of Perth on Thursday, several countries and companies expressed an interest in investing in Mozambique in the mining and hydrocarbon sectors, according to the Chairperson of the Confederation of Mozambican Business Associations (CTA), Rogerio Manuel. Read more Oil and mining prospecting in Mozambique is exempt from VAT Prospecting for oil and minerals in Mozambique will be exempt from value added tax (VAT) under the terms of the VAT Code review approved Thursday by Mozambique’s National Assembly. The Mozambican government, which proposed the VAT exemption to the parliament, said it was focusing on mining as one of the main levers for the country’s social and economic development. Read more Kenmare announces production increase The Irish company Kenmare Resources has announced a significant increase in production during the third quarter of this year from its dredge mine in Moma district, on the coast of the northern Mozambican province of Nampula. The mine produces a heavy mineral concentrate (HMC), from which titanium and zirconium minerals are then extracted. Read more
Natural gas discovered by ENI in Mozambique is 50 pct bigger than first announced The natural gas reserves discovered in the Mamba Sul 1 prospecting area, Area 4, off the coast of Mozambique, are thought to be 50 percent larger than previously announced, Italian oil group ENI said in Milan Thursday. On 20 October Italian oil and gas group ENI – Ente Nazionale Idrocarburi said it had discovered estimated reserves of natural gas of 15 trillion cubic feet (424.7 billion m³). Read more Tete: Second phase of Vale’s Moatize project due for conclusion in 2014 The second phase of the Moatize project of Brazilian mining group Vale is expected to be concluded in 2014 and will represent an investment of US$1.658 billion, US$161 million of which have been consigned for this year, the group said Wednesday in Rio de Janeiro. According to results documents for the third quarter of the year, the second phase of the Moatize project, located in Mozambique’s Tete province, includes opening a new mine, construction of a new coal reception and preparation unit and extending storage space, as well as all associated facilities. Read more Read more of the latest Mining and Energy stories making headlines here. OVER THE BORDER Swaziland: Nkwalini, Fonteyn could be heritage sites It has been suggested that Swaziland should explore developing some areas with significant political history into heritage sites. South Africa’s Minister in the Presidency for Performance Monitoring, Evaluation and Administration Collins Chabane said Swaziland could explore converting into heritage sites places like Fonteyn, Nkwalini and some areas in Manzini that served as home to several South African and Mozambican exiles during the apartheid and civil war era. Read more UNICEF and partners race to prevent second wave of death in the Horn of Africa One hundred days since famine was declared in parts of southern Somalia, UNICEF and its partners are doing their utmost to prevent a second and potentially more devastating wave of deaths from disease against a background of conflict. "The current rains will bring some relief to drought‐affected areas in Somalia and neighbouring countries. They however also increase the risk of disease outbreaks and hamper the distribution of aid,” said Elhadj As Sy, UNICEF’s Regional Director for Eastern and Southern Africa. Read more Zimbabwe: Mugabe is in Singapore for medical treatment Zimbabwean President Robert Mugabe has flown secretly to Singapore for medical treatment for the eighth time this year, government sources said, heightening concern over the health of the 87‐year‐old leader. As he approaches his 32nd year in power, observers say political factions within his Zanu‐PF
party are jockeying increasingly openly to succeed him as party leader, amid increasing expectations of political instability in the southern African country. Read more Read more of the latest International stories making headlines here. ‘THE MARKETPLACE’ EDUCATION AND TRAINING Mozambique Labour Law – Know your rights, and the rights of your employees. Purchase a copy of the Mozambique Labour Law in English and Portuguese for only MT 360.00. Please contact Marcia at
[email protected]. PROPERTY Fantastic property offers from Pam Golding Mozambique Residential 1. For Rent– Belo Horizonte‐House‐5 bedrooms–modern kitchen‐fully furnished‐$2.500. 2. For Rent‐Sommerchield‐5 bedrooms‐luxurious kitchen‐pool‐2 lounges‐$8.000 3. For Rent –Frederich Engels‐2 bedrooms‐sea view‐spacious apartment‐$3.500 4. For Rent–Triunfo‐5 bedroom‐sea view‐pool‐garden‐$6 500neg 5. For Rent‐ Rua da França‐3 bedroom‐american kitchen‐unfurnished‐$1500 6. For Rent‐ Rua da França‐4 bedrooms‐2 bathrooms‐unfurnished‐cottage‐92.000 Meticais Commercial 1. For sale‐ 24 de Julho (in front of Interfranca)‐ $2.200.000‐ 2 storey building with 1000m2 area ideal for offices/ guesthouse. 2. To rent‐ Matola‐ $2.000‐ 3 bedroom house with 2 toilets, spacious lounge, American kitchen, braai area, communal pool and gym 3. For Sale‐ Matola‐ Mozal‐ $1.300.000‐ Industrial property with 3000m2 warehouse, 400m2 office space 4. For sale‐ Tete‐Chingale‐ $400.000‐ Industrial property with an area of 14.780m2 in a strategic location. Kindly contact Fabricio Dos Santos on +258 82 369 8745 or email
[email protected] EVENTS Hotel Cardoso is the ideal venue for your next conference To arrange your conference with Hotel Cardoso, contact Lucas or Sérgio on (+258) 21 49 1071. COMING UP ACIS BusinessLink 2011, 9 November in Maputo, Mozambique
Over 100 companies have already registered for this one day networking event. The event will be visited by top executives, business leaders and invited guests from government, donor organizations and embassies where these have a specific interest in doing business or procuring products from Mozambican companies. Participation is by invitation only, ensuring that the event attracts only those who have a genuine interest in doing business. For more information please contact ACIS (www.acismoz.com). Rural Electrification Forum 2011, 15 to 17 November in Maputo, Mozambique For more information please click here. Coal Trading and Logistics Workshop, 21 November in Maputo, Mozambique For more information please click here. Coaltrans Mozambique, 22 and 23 November in Maputo, Mozambique For more information please click here. This Edition is brought to you in partnership with:
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