Nyusi calls for dialogue between Russian and Ukraine; The constitution of the Republic does not make room for a third term, says Simango
Welcome to Zitamar’s daily Mozambique briefing for 26 May 2022
Agenda:
Today: Mozambique-Rwanda Business Forum, run by the Mozambique Chamber of Commerce and the Rwandan Private Sector Federation, in the Hotel Polana, Maputo
Friday - Sunday: Frelimo's Central Committee meeting in Matola
Today’s headlines:
Niassa has potential for wheat, coffee and apple production, study shows (O País)
MDM's Lutero Simango pushes for lower VAT on fuels (Evidências)
Government looks to reduce cost of electricity (O País)
Nyusi calls for dialogue between Russian and Ukraine (Rádio Moçambique)
The constitution of the Republic does not make room for a third term, says Simango (Evidências, Mediafax)
World Bank launches public consultations on its operational strategy (AIM)
Niassa has potential for wheat, coffee and apple production, study shows (O País)
A study by the Lúrio University, in Niassa, showed the province has potential for wheat, coffee and apple production. Speaking at the university's graduation ceremony, Dinis Vilanculos, Niassa Secretary of State, said agricultural production in the province should be used to "leverage the country's economy”, and also pushed for more livestock development. UniLúrio's dean, Leda Florindo Hugo, said she hopes the university can be a "hub for the production and innovation of knowledge, interacting with various sectors and communities".
MDM's Lutero Simango pushes for lower VAT on fuels (Evidências)
The president of Mozambique's Democratic Movement (MDM), Lutero Simango, said the government should reduce the Applied Value Tax (VAT) on fuel from 17% to 12%. Simango said that "if MDM were in power" the party would reduce VAT to "mitigate the cost of living for Mozambicans”. In another matter related to taxes, MDM's leader opposed taxation on churches saying that "it does not make sense to tax churches" and added that his party "recognises the role that churches play in the education of Mozambican society".
Political parties are asking for a fuel price reduction but should bear in mind that fuel prices in the countries surrounding Mozambique are considerably higher and this could prompt other economic effects, namely subsidized fuel being sent to the region.
Government looks to reduce cost of electricity (O País)
The Ministry of Mineral Resources and Energy (MIREME) has announced it is exploring reforms to its legal framework that will encourage investment and make energy more affordable for consumers.The government aims to extend universal access to energy by 2030 and plans for 20% of electricity to be generated by renewables. A social tariff system is supposed to ensure that the poorest will still be able to afford energy.
Nyusi calls for dialogue between Russian and Ukraine (Rádio Moçambique)
President Filipe Nyusi has called for Russia and Ukraine to engage in dialogue to resolve the ongoing conflict. Mozambique abstained in a United Nations resolution in March demanding the withdrawal of Russian forces from Ukraine. Nyusi reaffirmed his neutrality but explained that this abstention does not mean he endorses violence, rather he hopes to stimulate constructive dialogue that may end the war.
Nyusi was forced to address the issue in Accra, after the host president, in a clear political gaffe, said Ghana and Mozambique condemned the Russian invasion of Ukraine - a statement that grabbed the local headlines and caused confusion in Maputo.
The constitution of the Republic does not make room for a third term, says Simango (Evidências, Mediafax)
The leader of Mozambique's second largest opposition party MDM, Lutero Simango, says a third term of Filipe Nyusi as President of the Republic is out of the question, recalling that the Mozambican Constitution is clear in stating that a head of state can only be re-elected once. Lutero Simango added that in order to change the presidential term limit, there would have to be a popular referendum. However, he noted that the country does not have an organic law to enable referenda.
The discussion of a possible third term for Filipe Nyusi is getting wider, with more academics and politicians talking about the issue. However, supposedly the most interested party, Filipe Nyusi, has not yet said anything about the idea.
World Bank launches public consultations on its operational strategy (AIM)
The World Bank has launched a plan for a series of public consultations in order to review its operational strategy for Mozambique from 2023 to 2027. A press release on Tuesday announced that the exercise will include a description of the World Bank’s operational program in the country, as well as covering investments, reforms and analytical studies to be conducted over the next five years. The preparation of the strategy will revise previous strategies and will act in alignment with the current priorities of Mozambique and the World Bank.
Announcements
Kenmare Resources released its 'Payments to Governments 2021' report, in which the company notes an amount of $15,4m paid to the Mozambican government last year in taxes, royalties and fees (see here)
The National Petroleum Institute (INP) announced it will carry out a technical inspection at the Coral FLNG facility, located in the Area 4. The last inspection happened in January (see here)