Identifier | Created | Classification | Origin |
---|---|---|---|
06MAPUTO1162 | 2006-09-12 15:34:00 | UNCLASSIFIED | Embassy Maputo |
VZCZCXRO0770 RR RUEHDU RUEHJO RUEHMR RUEHRN DE RUEHTO #1162/01 2551534 ZNR UUUUU ZZH R 121534Z SEP 06 FM AMEMBASSY MAPUTO TO RUEHC/SECSTATE WASHDC 6018 INFO RUCNSAD/SOUTHERN AFRICAN DEVELOPMENT COMMUNITY RUEHLMC/MILLENNIUM CHALLENGE CORP 0083 RUCPDOC/DEPT OF COMMERCE WASHDC RUEHC/DEPT OF LABOR WASHDC RUEATRS/DEPT OF TREASURY WASHDC |
UNCLAS SECTION 01 OF 02 MAPUTO 001162 |
1. This is a brief summary of significant economic developments in Mozambique during August 2006. We provide it as a supplement to our other reporting. The items discussed are: -- Economic Growth Estimated at 10 percent -- Oil/Gas Exploration of Zambezi Delta to Begin April 2007 -- Cooking Oil Refinery to Receive USD 2 Million Investment -- Maputo International Trade Fair (FACIM) -- Mozambique to Upgrade its Airports in Next Two Years Economic Growth Estimated at 10 percent -------------------------- 2. According to Mozambican Prime Minister Luisa Diogo, the Mozambican economy grew ten percent in the first six months of 2006 compared to the same period of 2005. This exceeds the Mozambican government's projected growth rate for 2006 of 8.2 percent. Much of this growth appears to have occurred in the business sector, which reportedly grew by 22.4 percent between January and May 2006. At the press briefing to discuss the growth rates, Diogo praised the government's ability to achieve high growth despite volatility of oil markets. Responding to criticism that this high growth has not been matched by equivalent increases in government services, according to Diogo the government's policies are providing the desired results, if not yet at the desired rate. (Note. These growth rates are estimated from the Mozambican government and do not reflect final numbers. End Note.) Oil/Gas Exploration of Zambezi Delta to Begin in April 2007 -------------------------- -------------------------- 3. Oil and gas exploration of the Zambezi River delta is scheduled to begin in April 2007, after the conclusion of environmental impact studies, according to press reports. The concessionaire, Petronas Carigali Mozambique E&P (PCMEP), a Malaysian company, will drill at least one well under an agreement between Petronas and Mozambican ENH (Empresa Nacional dos Hidrocarbonetos). The results from this study are expected to be released in June 2007. 4. Exploration of the Zambezi River delta is in addition to exploration rights already granted for oil and gas exploration in the Rovuma River Basin. Seven companies, including the American company Anadarko, currently have rights to explore blocks within the Rovuma delta, located near the Mozambican border with Tanzania. Cooking Oil Refinery to Receive USD 2 Million Investment -------------------------- -------------------------- 5. The Mozambican cooking oil refinery FASOL announced on August 22 that it would be investing USD 2 million into renovations and upgrades of its Maputo plant. The FASOL general director, Paulo Carvalho, made this statement on the margins of the signing of this year's Food for Progress agreement between the US and Mozambique. Under the FY 2006 agreement, the USG will donate 4500 tons of unprocessed vegetable oil for sale on the Mozambican market. According to Carvalho, this agreement will allow FASOL to purchase oil and increase production by approximately 500%, a critical increase necessary to respond to market demands. Maputo International Trade Fair (FACIM) -------------------------- 6. The forty-second International Trade Fair (FACIM) took place in Maputo from August 28 through September 3. At the opening President Guebuza stressed the importance of Mozambique's business community for the country's development and urged that it rise to the challenges the MAPUTO 00001162 002.2 OF 002 pending SADC Economic Free Trade Zone will present (note - the SADC Free Trade Zone comes in force for Mozambique in 2012). In this regard, Guebuza stressed that Mozambique needs to increase production and improve the competitiveness of national products. His message echoed the theme of the Ministry of Industry and Commerce's recently launched program - Made in Mozambique - which focuses on producing, promoting and exporting Mozambican products. 7. The 2006 FACIM hosted 530 exhibitors from 13 different countries, though most were Mozambican participants. One new participant is a cheese manufacturer located in the central province of Manica. The new company, Gouda Gold, has the capacity to produce 1.8 tons of cheese daily and is planning to export cheese within SADC and to the EU. Mozambique to Upgrade its Airports in Next Two Years -------------------------- -------------------------- 8. The GRM has budgeted USD 135.5 million to rehabilitate and upgrade its airport infrastructure around the country over the next two years, according to a government report released in mid-August. The work includes not only the main airport in the capital of Maputo, but also airports in Beira, Pemba, Quelimane, Tete, Vilankulo and Ponta de Ouro (on the border with South Africa). 9. Mozambique's nineteen airports managed are managed by the parastatal Airports of Mozambique. In addition, the country counts 229 airfields, of which ten are military, 61 private and the remainder the property of the state. Raspolic |