Latest news with #Mozambican
Business Insider
8 hours ago
- Business
- Business Insider
$20 billion comeback and a $5billion dam could supercharge Mozambique's economy
Mozambique is preparing for a significant economic transformation as two key energy projects gets the necessary push. On one hand TotalEnergies is back on its $20 billion LNG project in the country, and on the other, the World Bank has agreed to support a $5 billion dam project. Mozambique is advancing two major energy projects: a $20 billion LNG project and a $5 billion hydroelectric dam. TotalEnergies is resuming its LNG project after security concerns halted progress in 2021. The World Bank is providing support for the Mphanda Nkuwa dam project, aiming to generate 1,500 MW of power by 2031. After years of delay, the government appears poised to restart the $20 billion liquefied natural gas (LNG) project led by TotalEnergies, while also securing World Bank financing for the largest hydropower project in Southern Africa in 50 years. Last week, Mozambique's energy minister stated that the prerequisites had been met to restart the TotalEnergies LNG project in the volatile Cabo Delgado area. The development, which began in 2010 following the discovery of a massive offshore natural gas deposit, received final investment approval in 2019. However, development was halted in 2021 due to a violent attack by Islamist extremists near the project's Afungi site, prompting the French energy giant to quit over safety concerns. 'We have the small problem of jihad, terrorism,' Chapo said. In an earlier interview with Bloomberg in Spain, the president said that while the region is more stable than four years ago, it isn't 'heaven,' but urged a restart nevertheless. Mozambican President Daniel Chapo indicated that negotiations with TotalEnergies CEO Patrick Pouyanné are proceeding and that an agreement is expected to be reached soon. 'I was with Mr. Pouyanne two weeks ago, and things are going well,' Chapo said. 'In August, we will close our talks' about when to restart the project, the president added. With security in the region greatly improved, TotalEnergies plans to restart construction of the LNG project later this summer. Mozambique's plan to generate electricity for 300 million people, and the World Bank's assistance Mozambique is looking forward to a future of sustainable energy in addition to LNG, according to a separate Bloomberg report. In an interview with the World Bank President Ajay Banga, it was revealed that the global lender plans to offer assistance for the $5 billion Mphanda Nkuwa hydroelectric project on the Zambezi River, and a related $1.4 billion power transmission project. The dam, which has a planned capacity of 1,500 megawatts, is scheduled to be operational by 2031. It will be supported by a $1.4 billion power transmission project. The objective is to deliver electricity connections to 300 million people in sub-Saharan Africa by 2030, considerably boosting access in an area where more than 80% of the world's 680 million people without the energy source dwell. 'We want to be the hub of energy in our region, the Southern African Development Community,' Mozambique's president stated. Mphanda Nkuwa is being developed via a partnership between the Electricité de France SA, TotalEnergies SE, and Sumitomo Corp. The Mozambican government and its Hidroeléctrica de Cahora Bassa firm will own holdings.
Daily Maverick
9 hours ago
- Health
- Daily Maverick
After US funding cuts, Mozambican children died — who bears responsibility?
Last month, Spotlight and GroundUp published a two-part exposé showing how US aid cuts led to the deaths of children in Mozambique. Here, Jesse Copelyn considers what led to this tragedy and who should bear responsibility for it. After the US Agency for International Development (USAID) abruptly terminated billions of dollars in overseas aid grants, the health system in central Mozambique was left in tatters. Earlier this year, I travelled to two badly hit provinces of the country to describe the toll. In one article, I reported how thousands of orphaned and vulnerable children in Sofala province had been abandoned by their USAID-funded case workers. Many of these children are HIV-positive and had relied on case workers to bring them their medicines or accompany them to hospital. Without them, some children stopped taking their treatment and died. In a second piece, I reported how USAID had cut funding for contractors transporting medicines and diagnostic tests to health facilities in Manica province. This led to shortages of HIV drugs at hospitals in the area, which also led to the deaths of children. Amid all this chaos, I was often curious to know from people on the ground who they held accountable for this situation and who they believed needed to solve the problem. My assumption was that they would call for the Mozambican government to help them out. I was surprised to find that in the affected villages which I visited, this was far from anyone's expectation. In fact, for most it was simply unthinkable that their government could do anything to save them. 'You mentioned the government,' one community leader said after I asked whether the state should intervene. 'But even these chairs we're sitting on are stamped with USAID logos. So what help can we expect from the government?' Indeed, the more I learnt about governance in Mozambique, the more understandable this attitude became. Throughout the country, core government functions have been outsourced to a combination of foreign governments, aid agencies, interstate bodies and private companies. For instance, many of the country's essential medicines are procured by a large international financing body called the Global Fund to Fight Aids, Tuberculosis and Malaria. Up until January, the transportation of these medicines to hospitals was overwhelmingly financed by US aid agencies, as were the paycheques of many health workers. Outside of the healthcare sector, the story is similar. The main highway that I travelled along to reach different villages was built and paid for by Chinese corporations and banks. To keep hydrated I relied on bottled water supplied by private companies since the taps either didn't run or produced contaminated water. In many of the impoverished rural settlements that I visited, there was virtually no state infrastructure, and people received no financial support from the government. Instead, they primarily depended on aid organisations. The country's national budget has historically been heavily supplemented by foreign bodies, including the International Monetary Fund (IMF) and European Union. (Though much of this support was suspended in 2016/17.) Even national defence has been partially outsourced. When Islamist militants began rampaging through the northern province of Cabo Delgado, the government struggled to contain it and contracted Russian and South African mercenary groups. When that failed, they authorised a military intervention by the Southern African Development Community (SADC) and invited a parallel mission by the Rwanda Defence Forces. It is thus no surprise that Mozambicans have virtually no expectation that their own government will come to the rescue when facing an emergency. Instead, they look outward. As one community leader in a rural village told me, 'Here, we depend on Trump.' Cash-strapped and corrupt Mozambique has 35 million people. About 2.5-million live with HIV, the second-highest HIV-positive population in the world after South Africa. Life expectancy is well under 60. The country is extremely poor: eight in 10 people live on less than $3 per day. The government is also deeply cash-strapped. The South African government spends 10 times more per citizen than the Mozambican government does. A large chunk of its spending goes towards paying off debt. At present, Mozambique simply doesn't have the money to build an effective health system, though had it spent its limited budget reserves more effectively over the years it could have developed a health system that was at least a bit more independent of donor support. Instead, the country's budgetary resources have often been wasted on corruption. Mozambique currently ranks 146th out of 180 in the world on Transparency International's Corruption Perceptions Index. This has directly played a role in its public health woes. One clear example of this is the Tuna Bonds scandal, in which state-owned companies took out $2-billion worth of loans, backed by secret state guarantees. This was supposedly to finance large fishing and maritime security projects. In reality, much of the money was siphoned off to enrich political elites, including the then-finance minister (who is now in prison). As a result of those decisions the country was swallowed by debt. And when the extent of the corruption was publicised in 2016, the IMF pulled its financial support for Mozambique. A detailed 2021 report found this directly led to a fall in economic growth and government spending. It states: 'Comparing the three-year average of 2016-18 to the three previous years, spending on health and education fell by USD 1.7 billion – entirely due to the debt.' The country's governance crisis is further demonstrated by the political unrest that engulfed the country after the October 2024 elections, triggered by accusations of election fraud. The accusations are likely to have been overblown, but international observers said the election was not free and fair. Even during the brief week I spent in central Mozambique, signs of corruption and mismanagement filtered into my interactions with officials. For instance, before I embarked on a multiday tour of one province, government officials told me that someone from the provincial health department would need to accompany me on my trip. This was apparently to make formal introductions to district-level officials that I hadn't asked to meet. For this apparently vital service, the man would need to be paid a per diem of roughly R500 a day for two days, they said. The civil servant in question was a very senior person in the provincial health department. Despite facing a collapsing health system in the wake of the US cuts, he was apparently ready to drop everything he had going for the rest of that week to follow me around. When I explained that I wouldn't pay a government official to stalk me, I was told that saying no wasn't an option. This is unfortunately the way things are done around these parts, said a local who helped arrange the tour. (Neither GroundUp, Spotlight nor I paid the bribe, incidentally.) US responsibility Against this backdrop, it is perhaps no surprise that defenders of the current US government have often resorted to arguments about moral responsibility when justifying the decision to abruptly slash aid. It is reasonable to ask why the American taxpayer should bear any of the brunt of Mozambique's public health system when so many of its problems have been caused by the Mozambican government itself. But it's not so simple. The Mozambican civil war from 1977 to 1992 destroyed the country. The anti-communist Renamo insurgency likely received millions of dollars of support from US evangelists, despite committing numerous atrocities. It is strongly suspected that the US government also materially supported Renamo. So the US's involvement in Mozambique has not been innocent. It could be argued that its aid spending was the least the US could do to make amends for its role in the war. Moreover, Mozambique didn't develop its high level of dependency in isolation. For more than two decades the US actively took responsibility for core functions of the country's health system. Up until January, the US government continued to sign numerous contracts with local organisations, pledging millions of dollars to help run life-saving health programmes for years into the future. The health system was consequently built around these commitments. If the US was going to take that much responsibility for the wellbeing of some of the world's most vulnerable people, then it had a duty to at least provide notice before pulling the plug. Instead, it chose to slash the funds instantly, and in a manner that needlessly maximised damage and confusion. Stop-work orders were issued overnight which required that people who were doing life-saving work down their tools immediately. Organisations decided to adhere to these instructions rigidly in the hope that their funding would be reinstated. At that point the Trump administration said it was only pausing aid funding pending a review, and no one wanted to give the reviewers a reason to terminate their programmes. The consequence was complete chaos. Orphaned children in extremely rural parts of Mozambique waited for their case workers to bring them their medicines, but often they simply never came. Many of these children had no idea why they had been abandoned. When certain case workers decided to defy the stop-work order and continue their work voluntarily, they were forced to do so in secret. To add fuel to the fire, the Trump administration routinely provided contradictory information to its former recipients and to the public. The initial executive order signed in January said all foreign development assistance would be suspended for 90 days, pending a review, and might be restored after this time. Then, Secretary of State Marco Rubio issued a waiver which stated that the suspension wouldn't apply to life-saving humanitarian services. Rubio told the public that organisations providing these life-saving services could instantly resume their work under this order. Yet the organisations themselves received different instructions from their USAID officers. Rather than immediately continuing their work, they were told to submit revised budgets that only covered life-saving services and to wait for approval. Organisations rushed to submit these budgets by the deadline. But in the end, the green light never came and their funds remained frozen. This was not only the case in Mozambique; researchers estimated that virtually no funds were released under Rubio's waiver globally. In the meantime, Rubio stated that organisations that hadn't resumed life-saving activities were clearly unable to understand instructions or were simply trying to make a political point. Later on, the organisations received explicit termination notices, ending their programmes. Despite this, US embassies and several large media outlets continued to reference Rubio's order as if it was actually implemented en masse. Even as I write this, the on-again, off-again US aid story is unfinished. This mixed messaging created an enormous amount of confusion for staff of these organisations and the recipients of their work, ultimately for no clear benefit to the American people. There was simply never any reason to act this callously towards health organisations to whom USAID had pledged its support. In contrast to the rampant corruption which has plagued the Mozambican government, these organisations were heavily audited in order to continue receiving funding. The work they were doing was clearly making a material difference to some of the poorest people on Earth. In the far-flung settlements that I visited, villagers told me about how their lives had been transformed by these organisations. Many were only put on life-saving HIV treatment because of them. Whatever arguments one may want to advance about the importance of self-sufficiency and national responsibility, none of this justifies the US government administering the aid cuts in such a callous and confusing manner. DM
Mint
10 hours ago
- Business
- Mint
Mozambique Nears Deal to Revive $20 Billion Total Gas Project
(Bloomberg) -- Mozambican President Daniel Chapo said he expects to soon conclude talks with TotalEnergies SE over the restart of a $20 billion natural-gas project that halted four years ago because of an Islamist-militant insurgency. Chapo recently met with Total Chief Executive Officer Patrick Pouyanne to discuss resuming the project that has the potential to transform the economy of one of the world's poorest countries, he said in a July 19 interview. 'I was with Mr. Pouyanne two weeks ago and things are going well,' Chapo said. 'In August, we will close our talks' about when to restart the project, he said. Total halted work on Mozambique LNG, located in the northeastern Cabo Delgado province, evacuated workers and declared force majeure in 2021 after an escalation in attacks in the area by Islamic State-linked militants. The raids by the insurgents — which have since prompted the deployment of troops by both Rwanda and, for a while, Mozambique's neighbors to assist — drained momentum from the development of $50 billion worth of liquefied natural-gas projects, with Eni SpA and Exxon Mobil Corp. also developing plants. 'We have the small problem of jihad, terrorism,' Chapo said. In an earlier interview with Bloomberg in Spain, the president said that the while the region is more stable than four years ago, it isn't 'heaven,' but urged a restart nevertheless. Chapo was scheduled to meet Pouyanne in Maputo, Mozambique's capital, on July 10. Companies working on the construction of Total's plant have begun preparing to resume operations, according to people familiar with the matter, while Eni is said to have awarded a contract to Samsung Heavy Industries Co. to build its Coral North floating plant, adding to its $7 billion Coral South facility, which is already operational. The gas reserves discovered 15 years ago off Mozambique's northeastern coast are among the world's biggest. Sign up here for the twice-weekly Next Africa newsletter, and subscribe to the Next Africa podcast on Apple, Spotify or anywhere you listen. --With assistance from Matthew Hill and Paul Burkhardt. More stories like this are available on
The South African
a day ago
- Entertainment
- The South African
Chidimma mocks news of Miss SA organisation 'downfall'?
Chidimma Adetshina, the South African-born Miss Universe runner-up, is laughing off news that the Miss SA pageant has been postponed and is under new management. The news comes days after pageant CEO Stephanie Weil resigned from her post. In the past year, the Cape Town model – whose father is Nigerian, and whose mother is Mozambican – has been the target of a Home Affairs investigation. Last year, Chidimma stepped down from her position as Miss SA finalist. A few weeks later, she won the title of Miss Universe Nigeria and competed at the international pageant, where she was crowned runner-up. In a press statement posted on pageant fanpage @misssafandom, the Miss SA organisation announced that the finale would be postponed from August to a later date in 2025. This was one to 'ensure the alignment with international and other global events.' Since Stephanie Weil stepped down as CEO, the pageant has been taken under the wing of Africa Fashion International, which has vowed to 'embark on this strategic journey together, leveraging our unique strengths to drive growth and innovation.' In the comments section, pageant fans were mostly unsurprised by the news, given the delay in announcing the Top 30. Also commenting was Chidimma Adetshina, who posted a meme of a man suppressing a smile. When one follower accused the pageant queen of being 'petty,' she responded, 'I'm just smiling. I've given you way too much access to me, and I'm sure that's your biggest achievement this year. Go rest, bye!' Chidimma Adetshina has reacted to news of Miss SA's postponement. The beauty queen is a former 2024 finalist. Image via screenshot: @misssafandom Late last year, the Department of Home Affairs revealed it would be investigating the mother of Chidimma Adetshina, Anabela Rungo, who had unlawfully registered her as a South African at birth via fraudulent documents. Earlier this year, Rungo was arrested and charged with violating the Immigration and Identification Act. She has since been released on bail. Both Chidimma and her mother have had their SA ID and passports revoked. WHAT ARE YOUR THOUGHTS ON MISS SA'S POSTPONEMENT? Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1 . Subscribe to The South African website's newsletters and follow us on WhatsApp , Facebook , X, and Bluesky for the latest news.
IOL News
a day ago
- Politics
- IOL News
Six killed in Choba tavern shooting: Calls for action against illegal operations
Community safety concerns rise after deadly tavern shooting in Choba informal settlement in Olievenhoutbosch, where six patrons were gunned down. Image: File A string of tavern mass shootings in recent months has raised serious concerns about community safety in South Africa. The latest incident occurred on Friday night at a tavern in Choba informal settlement, Olievenhoutbosch, claiming six lives. The shooting is believed to have stemmed from a gang turf war between Lesotho and Mozambican nationals. Community leaders, police, and political parties have raised alarm about safety and the implications of illegal tavern operations. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad loading The African Transformation Movement (ATM) expressed concern that illegal taverns are operating without adhering to safety standards, putting patrons at risk. "The ATM raises serious concerns about compliance with safety regulations, licensing conditions, and the broader role such establishments may play in perpetuating criminal activity within vulnerable communities," said party spokesperson Zama Ntshona. GOOD Secretary-General Brett Herron attributed the attack to a larger crisis of crime and violence in impoverished communities, emphasising the need for spatial and socioeconomic transformation to address the root causes. "We have a duty to confront our failure to address the spatial legacy conditions that create socio-economic conditions conducive to crime and gangsterism," he said. Recent months have seen a concerning surge in tavern killings, including a January incident in Mpumalanga province's Pienaar area, where unidentified gunmen opened fire outside a tavern, killing eight patrons. A February incident in Mandeni, north of KwaZulu-Natal, resulted in the deaths of four people, including two off-duty SAPS members, in a tavern shooting. Last October, a tavern owner in Orange Farm, south of Johannesburg, allegedly shot and killed family members of a patron with whom he had a dispute, resulting in seven murders. Oupa Mataboge, representative of the South African Liquor Traders Association, blamed the police for allowing the unlicensed tavern to operate. "Places like that in Olievenhoutbosch are not allowed to sell liquor because there is no infrastructure," he said in a television interview. He expressed concern that law enforcement failed to take action despite the tavern's extended period of illegal operation. Ward 77 councillor in Olievenhoutbosch, Thembeni Thabatha, said on Sunday that although the exact motivation behind the gunfight remains unclear, it appears to have been a clash between Mozambican and Lesotho nationals. He said it was the first time the two groups had a physical altercation, but there had been long-standing tensions between them. He identified the challenge facing his ward's community as the presence of two informal settlements, Choba and Mahlangu, which are predominantly occupied by Lesotho nationals. Thabatha claimed the Lesotho nationals have constantly been accused of serious crimes such as rape and murder. He appealed to the Gauteng Premier, Panyaza Lesufi, and various departments to collaborate in addressing the issue of illegal immigration in his ward. 'Most of the foreign nationals here don't have documents and they are the ones busy committing crime in our communities. We call upon the home affairs department and the metro police to come and conduct raids in those squatter camps,' he said. The police are currently searching for around ten suspects, who were armed with pistols and rifles, stormed the tavern and opened fire randomly, according to Gauteng police spokesperson Lieutenant-Colonel Mavela Masondo. 'The motive for the shooting is unknown at this stage. The police have opened a case of murder and attempted murder for investigation,' he said. He urged anyone with information that could aid the investigation or help capture the suspects to contact their nearest police station or call Crime Stop at 08600 10111.
