The country has reached third position in the African Trade Barometer, the results of which were released by Standard Bank to provide insights and analysis on African trade. The third edition, launched in 2022, covered ten countries, including Mozambique, and revealed significant improvements for the country.

According to Bernardo Aparício, CEO of Standard Bank, the SB ATB is a valuable tool for Mozambican entrepreneurs, offering up-to-date information through business surveys that address perceptions about trade and business opportunities.

Mozambique took third place in the overall SB ATB ranking, marking a remarkable rise from sixth place in September 2022. Mozambican business confidence has also grown, reaching a score of 59 in May 2023, slightly above the average of 58 to 57 observed in the September 2022 edition.

The increase in GDP and Foreign Direct Investment (FDI) flows, following the recovery from the effects of the pandemic, contributed positively to the attractiveness of national trade. Mozambique’s accession to the African Continental Free Trade Agreement (AfCFTA) has also boosted the country’s score, generating expectations of facilitating the movement of goods and services and stimulating cross-border investments.

However, challenges remain. High interest rates, adopted to contain domestic inflation as a result of the global crisis caused by the Russian invasion of Ukraine, have had a negative impact on business attractiveness. In addition, the country’s deficient infrastructure is singled out as an obstacle by the companies surveyed, with electricity supply and the state of the roads highlighted as the aspects with the worst perception.

The conclusion of the third edition of the SB ATB highlights Mozambique’s positive trajectory on the African trade scene, with notable advances and challenges to be faced in order to further strengthen its position in international trade.

A fase de teste de equipamento e de injecção de gás natural na Central Térmica de Temane (CTT), distrito de Inhassoro, em Inhambane, sul de Moçambique, poderá arrancar em Maio do próximo ano, o que reafirma as garantias de conclusão das obras nos prazos estabelecidos.

As perspectivas surgem na sequência dos avanços constatados na construção de infra-estruturas e montagem de equipamentos, o que corre a um ritmo acelerado.

O reforço nestas melhorias reside nos avanços quanto à melhoria do acordo de partilha de produção realizado pela Suid Afrikaanse Steenkool en Olie – carvão e óleo sul-africano (SASOL).

O mesmo prevê a construção de um empreendimento que deverá garantir a produção de 23 milhões de gigajoules de gás por ano, a ser canalizado posteriormente para a Central Térmica de Temane gerar energia.

As garantias foram prestadas recentemente por Samir Salé, diretor de Desenvolvimento de Negócios da Globeleq , empresa que liderou o projeto da CTT, no curso de uma reunião promovida pelo Governo Provincial de Inhambane com o objetivo de avaliar o estágio de implementação deste, bem como a construção da fábrica de gás natural e doméstico.

Relativamente ao curso das obras, Samir Salé referiu que as mesmas estão com uma execução positiva colocada em 87 por cento.

Destacou a instalação das fundações, a conclusão das estruturas dos principais edifícios, assim como o início das atividades de escopo mecânico e eletrônico.

Louvou ainda a finalização das pontecais de Inhassoro e o decurso das obras de sustento da ponte provisória sobre o rio Govuro pelo facto de concorrer para a garantia de transporte do material
pela via marítima de Maputo até Inhassoro.

Com um investimento de 652,3 milhões de dólares norte-americanos, os CTT vão produzir 450 megawatts de energia num modelo de geração em ciclo combinado à base de gás natural, que serão fornecidos à Electricidade de Moçambique (EDM) pela SASOL para distribuição no mercado nacional.

De igual modo, destacou-se o avanço no projecto que prevê a implementação da Linha de Transporte de Energia Eléctrica de Temane para Maputo.

Bruno Baptista, responsável por estas obras, situa que das 1127 torres previstas pelo menos 150 já foram montadas, cobrindo uma distância de 250 dos 560 quilómetros da linha de transporte de energia eléctrica definida.

The equipment testing and natural gas injection phase at the Temane Thermal Power Plant (CTT), in the Inhassoro district of Inhambane, southern Mozambique, could start in May next year, which reaffirms the guarantees that the work will be completed on time.

These prospects follow on from the progress made in building the infrastructure and assembling the equipment, which is running at a rapid pace.

Reinforcing these improvements is the progress made on improving the production sharing agreement signed by Suid Afrikaanse Steenkool en Olie – South African Coal and Oil (SASOL).

The agreement provides for the construction of a project that should guarantee the production of 23 million gigajoules of gas per year, which will then be channeled to the Temane Thermal Power Station to generate energy.

The assurances were recently given by Samir Salé, Business Development Director of Globeleq, the company that led the CTT project, during a meeting organized by the Inhambane Provincial Government with the aim of assessing the stage of implementation of the project, as well as the construction of the natural and domestic gas plant.

Regarding the progress of the works, Samir Salé said that they were running at a positive 87 percent.

He highlighted the installation of the foundations, the completion of the structures of the main buildings, as well as the start of mechanical and electronic activities.

He also praised the completion of the Inhassoro jetty and the progress of the work to support the temporary bridge over the Govuro River, as this would help to guarantee the transportation of the material
by sea from Maputo to Inhassoro.

With an investment of 652.3 million US dollars, CTT will produce 450 megawatts of energy in a combined cycle generation model based on natural gas, which will be supplied to Electricidade de Moçambique (EDM) by SASOL for distribution on the national market.

Also noteworthy was the progress made on the project to implement the Temane to Maputo Electricity Transmission Line.

Bruno Baptista, who is responsible for these works, says that of the 1127 towers planned, at least 150 have already been erected, covering a distance of 250 of the 560 kilometers of the defined electricity transmission line.

India Technical and Economic Service (RITES), consolidated a deal worth 37.6 million dollars for the supply of ten diesel-electric locomotives to CFM. The decision was announced in a statement to the Indian stock exchange, in which RITES said that its bid was chosen due to its lower value, effective November 16. CFM notified all bidders of the contract award.

RITES also took part in the tender for the supply of 300 wagons to CFM. However, the Mozambican company opted for another competitor, without detailing the reasons for this choice.

Rail transportation in Mozambique has experienced remarkable growth in 2022, with more than 5.5 million people using the services. This represents a significant expansion of 81% over the previous year, driven in part by the relaxation of measures to prevent the COVID-19 pandemic. Substantial investments made in 2021 contributed to strengthening transport capacity in the south and center of the country.

According to CFM’s accounts report, the Mozambican rail network transported 24.6 million gross tons of cargo in 2022, representing a notable increase of 30% compared to the previous year. The port terminals under CFM’s management handled 13.21 million tons during the same period, indicating a growth of 6% compared to 2021. This increase is attributed to the new investments made by the company.

Despite the challenges faced in the first months of 2022, such as cyclones, incidents of rail derailments, moderate supply of rail cargo and the conflict between Russia and Ukraine, CFM’s management underlines its commitment to robust investments. The company claims to have invested 7.9 billion meticais in rail and port projects to revitalize and renew its assets, thus strengthening its position in the sector.

This partnership between RITES and CFM not only boosts Mozambique’s transportation infrastructure, but also highlights the importance of international collaborations to strengthen rail and port networks, promoting economic growth and global connectivity.