AGP Executive Report

Maritime Security: A Mozambique-flagged LPG tanker, DISHA, carrying 28 Indian crew members, was attacked in Iranian territorial waters near the Strait of Hormuz. Diplomatic Update: The Indian Embassy in Tehran confirmed all 28 crew are safe and said it is in close contact with relevant authorities, while details on damage and the attacker remain unclear. Energy & Trade Risk: The incident adds to wider shipping worries as tensions between Iran and the US disrupt one of the world’s key energy corridors, with knock-on effects for LNG and regional energy projects. Mozambique LNG Watch: TotalEnergies said it is sticking to its 2029 start-up target for the Mozambique LNG project despite equipment-shipping problems linked to Strait of Hormuz disruptions. Jobs & Finance in Mozambique: FUNDEC and CTA both point to credit access and high financial costs as major barriers to SME growth, while stressing that quality jobs and productivity are central to economic development. Mining Power Push: Vulcan (Jindal Group) invested $160m in a 300MW power plant for its Moatize coal operations, aiming to cut diesel use and electrify mining and the rail corridor.

Mozambique Energy Push: Vulcan invested US$160m in a 300MW power plant at its Moatize coal mine in Tete, aiming to cut diesel use and electrify mine operations and the rail corridor, with surplus power planned for the national grid. Industrial Shock: South32 says Mozal’s shutdown over electricity-price disputes has driven US$117m in costs, with production down and the smelter shifted to care-and-maintenance, threatening one of Mozambique’s biggest private employers. Jobs & Finance Focus: FUNDEC and CTA both flag the same bottlenecks for growth: creating quality jobs and easing SME credit access, with CTA warning many firms lack the digital records banks need to assess risk. Telecom Upgrade: Powertel-Paratus completed the Plumtree–Victoria Falls fibre backbone upgrade, positioning the route to boost regional internet capacity and investment in strategic infrastructure. Digital Infrastructure Regulation: Bubble Cloud Mozambique won an advanced INTIC licence and will run two availability zones (Maputo City and Beluluane) to improve continuity for banks and government data. Business & Consumer Tech: ThrillTech launched its “Segunda Chance” jackpot in Mozambique via 888AFRICA, marking its first deployment on the SportingTech platform in the country. Regional Trade Pain (Mozambique-linked): A transport conference study estimates cross-border disruption costs South Africa R15–R16bn a year, with major delays at Lebombo and other gateways affecting freight into Mozambique and beyond. Health Breakthrough: A major trial across South Africa, Uganda, Zambia, Zimbabwe and Mozambique finds children with severe pneumonia can switch from injectable to oral antibiotics once improving, potentially shortening hospital stays.

Mozambique Energy & Gas Local Content: President Daniel Chapo says energy is central to Mozambique’s industrial push, with Rovuma Basin projects worth over US$50bn aimed at jobs and wider productive capacity beyond exports. Oil & Gas Negotiations: ENI reiterates it wants Mozambique to capture more value from gas via local capacity building and supplier participation, while Reuters reports LNG buyers are seeking lower prices and more supply guarantees as Strait of Hormuz disruptions raise insurance costs. Digital Finance Infrastructure: Bubble Cloud Mozambique, newly licensed by INTIC in the advanced category, will run two availability zones (Maputo City and Beluluane) to keep critical data in-country and improve business continuity for banks and government. Trade & Investment Strategy: CTA urges Mozambique and China to move from simple trade/investment to joint production, technology transfer and value chains across agro-industry, energy, logistics and digital services. Shipping for LNG Supply Chains: MSC launches the Afungi Shuttle linking Afungi–Nacala–Maputo to move construction and industrial cargo with one booking point. Regional Energy Integration: SADC calls for more investment in energy infrastructure and highlights key interconnectors, including Malawi–Mozambique and Mozambique–Zambia, as the region lags on electrification. Health & Policy: Mozambique’s digital health strategy is updated for 2025–2034, while a major trial shows oral antibiotics can safely shorten hospital stays for children with severe pneumonia, including sites in Mozambique.

Mozambique–China Economic Reset: CTA urges Mozambique and China to move beyond trade and investment toward joint production, technology transfer and value chains to deepen industrialization and local supplier growth. Energy for Transformation: President Daniel Chapo says Rovuma Basin energy projects worth over US$50bn should drive industrialization, jobs and value addition beyond extractives. Gas Local Content Push: ENI tells Mozambique’s CEO Summit it will measure success by local capacity building, training and supplier participation in Rovuma gas projects. LNG Pricing Pressure: Reuters reports Asian and European LNG buyers want lower prices and more supply guarantees as Strait of Hormuz disruption shifts bargaining power toward buyers. Local Gas Promises Under Fire: Communities accuse gas giants of broken promises and destitution, while research highlights profits flowing out of Mozambique. Transport for LNG Build-Out: MSC launches the Afungi Shuttle linking Afungi with Nacala and Maputo to move construction and industrial cargo for the Afungi LNG project. Petroleum Law Update: Mozambique’s revised Petroleum Law (Law 8/2026) expands scope and introduces new licensing and contract regimes, including incentives for national participation. Regional Energy Grid Push: SADC calls for more investment in energy infrastructure, citing only ~50% electrification in the region and highlighting key interconnectors. Mozambique Business Diplomacy: AP-CPLP leadership in Luanda backs stronger parliamentary cooperation with Angola and flags Brazil’s absence. Security Flashpoints in Nampula: Clashes in Larde district leave police injured after residents intervened during an operation involving alleged stolen iron linked to Kenmare.

Mozambique Energy Policy: Mozambique has revised its Petroleum Law (Law No. 8/2026), replacing the 2014 framework and expanding rules to cover areas like emissions control, carbon capture and regasification, with new petroleum contract regimes and a reconnaissance license reserved for national companies. Regional Energy Ambition: President Daniel Chapo says Mozambique wants to become a regional energy hub, pushing power projects in the Zambezi Valley and Rovuma LNG developments, alongside corridor upgrades to boost industrialization and trade. Cross-Border Finance: eZi Remit and Mastercard partner to speed up and widen cross-border transfers from South Africa to 25 countries, including Mozambique, using Mastercard’s money-movement platform. Logistics for Mining Exports: Zimbabwe’s NRZ unveiled a lithium logistics push, including the first 1,000-tonne shipment of lithium concentrate to the Port of Maputo, with plans for more rail mineral hubs and new links into Mozambique. South Africa Migration Pressure: AFP reports over 160,000 foreign nationals have left South Africa amid escalating anti-migrant unrest, while rights groups warn communities are being scapegoated. Trade & Transport: MSC launched the Afungi Shuttle linking Afungi in northern Mozambique with feeder connections from Nacala and Maputo to support LNG-related cargo flows. Visa Updates: Nigeria’s passport now covers 44 destinations with visa-free, visa-on-arrival or e-visa options, including Mozambique.

Mozambique Energy Push: President Daniel Chapo told the Mozambique CEO Summit the country wants to become a regional energy hub, using hydropower and Rovuma LNG to drive industrialization, jobs and value addition, while also positioning Maputo, Beira and Nacala corridors for stronger trade. State Firm Turnaround: Mozambique Airlines (LAM) says it swung to a net profit of about 5.3bn meticais in 2025 after restructuring, cost cuts and lower supplier debt. Regional Trade & Mining Logistics: Zimbabwe’s NRZ has moved its first 1,000-tonne lithium concentrate train to the Port of Maputo via the Beitbridge–Chicualacuala corridor, aiming to cut export costs and boost rail freight. Bilateral Business Links: Mozambique and Egypt agreed to deepen cooperation in agriculture, trade, maritime transport, logistics and training, with a planned presidential visit. Food Safety Policy: Chapo backed stronger animal health oversight under a “One Health” approach, linking veterinary capacity to safer food systems. South Africa Migration Pressure: AFP reports over 160,000 foreign nationals left South Africa amid anti-migrant violence, including nearly 2,000 Mozambicans.

SADC Leather Push: Mozambique is among six SADC states aligning national leather plans with a regional framework, aiming to shift from raw hides to value-added manufacturing and boost jobs and intra-regional trade. Mozambique–South Africa Energy Links: Experts say Richards Bay gas projects worth about R100bn could reshape KwaZulu-Natal’s energy security, with Mozambique developments highlighted as part of the wider Sub-Saharan gas opportunity. Lithium Rail to Maputo: Zimbabwe’s NRZ has started moving 1,000 tonnes of lithium concentrate by rail to the Port of Maputo, cutting reliance on costly trucking and strengthening the battery-minerals export corridor. Mozambique Public Sector Results: Mozambique’s state firms are reporting improved performance after restructuring efforts to clean balance sheets, including LAM’s claimed profit of MZN5.3bn and better results at Airports of Mozambique. Water Access Drive: Mozambique plans 876,335 new household water connections by 2036 under ProÁguas 2026–2036, alongside major sanitation upgrades. Regional Migration Shock: Over 160,000 foreign nationals have left South Africa amid anti-migrant violence, including nearly 2,000 Mozambicans returning.

Mozambique State Firms’ Turnaround Reality Check: Petromoc, Airports of Mozambique and LAM are reporting cleaner results after IGEPE-led restructuring that shifts long-running liabilities off company books onto the state, but analysts warn it’s not a simple “turnaround” story. Water Access Push: Mozambique plans 876,335 new household water connections by 2036 under ProÁguas 2026–2036, including standpipes, dispersed water points and sanitation upgrades to cut open defecation. Energy Performance Watch: Cahora Bassa (HCB) says it exceeded first-half 2026 targets, with higher reservoir levels and stronger operations driving revenue and net profit gains. Regional Trade & Mining Logistics: Zimbabwe’s rail operator BBR is expanding lithium freight capacity via a new siding and first shipments to Maputo, aiming to shift bulk cargo from road to rail. FDI Snapshot for the Region: UNCTAD data shows Mozambique attracted about US$5.7bn in 2025 FDI, ranking among Africa’s top destinations. Cross-Border Tensions & Movement: Mozambicans are still returning to South Africa despite xenophobia-linked protests, while AU calls grow for constitutional changes to enable sanctions against discrimination. Corruption & Border Controls (SA): South Africa’s Home Affairs warns bribe payers face the same legal risk as officials, as arrests and dismissals continue.

Mozambique Debt & IMF Talks: President Daniel Chapo is pushing to convert and restructure US$1.4bn of Chinese debt into yuan, aiming to unlock a fresh IMF borrowing programme after Maputo cleared IMF arrears with a $630m payment; delays could force heavier use of gas revenues as the central bank warns sovereign risk remains severe. Northern Mozambique Humanitarian Pressure: The Bank of Mozambique says financial inclusion is still weak in Nampula, Cabo Delgado and Niassa, while humanitarian agencies warn Cabo Delgado alone needs aid for 919,000 people and only about half are currently reached. Airports of Mozambique Financial Strain: Deloitte flags operational continuity risk after Airports of Mozambique posted negative share capital of 857m meticais in 2025, with overdue receivables from LAM and ongoing state backing. Energy & LNG Logistics: Eni is bidding for an integrated onshore logistics base in Pemba to support Mozambique’s LNG build-out, including Coral Sul operations and future FLNG units. Agriculture Cooperation: Mozambique and Belarus plan a technical-financial mechanism to bring Belarusian mechanisation into family farming, targeting an “intermediate stage” between hoes and tractors. Regional Trade & Connectivity: Astral Aviation resumed weekly Nairobi–Guangzhou freighter service with onward links to Maputo, boosting cargo capacity for perishables and pharma. Governance & Integrity: Mozambique’s Prime Minister urged new public institution leaders to strengthen transparency and oversight, citing INSS financial scandals and the need to expand social security coverage beyond informal workers. South Africa Migration Shock (Mozambique-linked): South Africa’s anti-illegal immigration drive is disrupting labour supply and businesses report shortages of skilled workers, while xenophobia concerns continue to escalate across the region.

Debt & IMF Talks: President Daniel Chapo is pushing to convert and restructure US$1.4bn of Chinese debt into yuan, aiming to unlock a new IMF borrowing programme after Maputo cleared its IMF dues with a $630m payment; delays risk higher default pressure and tighter public finances. Aviation & Trade Links: Astral Aviation has resumed its weekly Nairobi–Guangzhou Boeing 767 freighter service, restoring a direct China–Africa cargo route with onward connections to Maputo—supporting e-commerce, pharma and cold-chain shipments. Mozambique Finance & Infrastructure: The Bank of Mozambique says northern provinces still lag on financial service coverage, while Deloitte warns Airports of Mozambique’s negative share capital (857m meticais) and overdue receivables from LAM threaten operational continuity. Energy & Logistics: Eni is bidding for an integrated onshore logistics base in Pemba to support Mozambique’s LNG build-out, with work likely to include land, quays proximity and support services. Humanitarian Pressure: Cabo Delgado remains in crisis, with Johanniter estimating 1.1m people need aid and only about half are currently reached. Regional Migration Shock (South Africa): Anti-illegal immigration protests are blamed for job losses and skilled labour shortages, while Mozambique’s business community is likely to feel knock-on effects through regional supply chains and labour markets.

Mozambique Governance: Prime Minister Benvinda Levi urged new public institution chairpersons to run affairs with integrity and transparency, warning INSS must tighten oversight after financial scandals and expand social security coverage beyond the informal economy. Humanitarian Crisis: Cabo Delgado remains under severe strain, with Johanniter warning about 1.1 million people in northern Mozambique need help and only half are currently reached; June displacement rose sharply, with women and children most affected. Agriculture & Trade Cooperation: Mozambique and Belarus agreed to deepen cooperation via a technical and financial mechanism to bring Belarusian agricultural mechanization into family farming, alongside broader industrial and security collaboration. Migration & Policy in South Africa: South Africa’s Inter-Ministerial Committee reaffirmed humanitarian support for displaced migrants while stressing lawful, orderly enforcement and condemning xenophobia and vigilantism. Regional Diplomacy: Ghana and Nigeria escalated concerns about Afrophobic violence in South Africa, calling for coordinated continental action while insisting on rule-of-law handling of individual crimes. Energy & Logistics (Mozambique): Eni launched a bid process for an integrated onshore logistics base in Pemba to support Mozambique’s LNG build-out, including Coral Sul operations and future FLNG units. Business Impact (South Africa): Anti-illegal immigration protests are reportedly driving labour shortages and job losses, with knock-on effects for transport, agriculture and services. Security & Corruption (Mozambique-Zimbabwe region): A “Border Mafia” extortion ring involving ZRP officers was sentenced in Zimbabwe, highlighting cross-border criminality that undermines trade and travel.

Mozambique Governance: Prime Minister Benvinda Levi urged new public-institution chairpersons to run affairs with integrity and transparency, warning that INSS must tighten oversight after financial scandals and expand social security coverage for informal workers and small-scale traders. Cabo Delgado Humanitarian Crisis: Johanniter International Assistance says about 1.1 million people in northern Mozambique need help, with 919,000 in Cabo Delgado; only half are receiving aid, as needs in healthcare, food, education and protection remain urgent. Mozambique-Belarus Agri Mechanisation: Mozambique and Belarus agreed to set up a technical and financial mechanism to bring Belarusian agricultural technologies into family farming, focusing on bridging the gap between hand tools and large tractors. Mozambique-Belarus Deeper Cooperation: Belarus also signalled wider collaboration in counter-terrorism, industrialisation, port and logistics use, mining exploration and complex fertiliser production. South Africa Migration Management: South Africa’s Inter-Ministerial Committee reaffirmed humanitarian support for displaced migrants while condemning xenophobia and vigilantism, stressing repatriation and enforcement are state responsibilities. Energy & LNG Logistics: Eni launched a bid process for an integrated onshore logistics base in Pemba to support Mozambique’s LNG growth, with submissions due 15 July. Regional Trade Diplomacy: A Macao (China-Portuguese-speaking countries) entrepreneur delegation will visit Mozambique for Maputo 2026 to explore commercial and economic cooperation and local business opportunities. Mandela Day Solidarity: Mandela International Day in Johannesburg saw community clean-ups with migrants from across the region, highlighting unity and rejecting xenophobia.

CPLP at 30: In Luanda, CPLP Executive Secretary Fátima Jardim said the bloc’s next decades hinge on deeper cooperation among member states to tackle global challenges, marking the community’s 1996 launch by Angola, Brazil, Cape Verde, Guinea-Bissau, Mozambique, Portugal and São Tomé and Príncipe. Mozambique energy & industry: Mozambique resolved a long-running coal mining dispute via an ICSID settlement, clearing the way for renewed investment momentum in the extractives sector. Mozambique LNG push: At CASP in Maputo, Eni Mozambique’s GM said the real test for Mozambique is whether local firms can compete for contracts in the $50bn-plus LNG boom in the Rovuma Basin. Regional security: SADC ministers urged stronger cooperation to address conflict, terrorism and emerging threats, citing progress in Mozambique’s national dialogue while flagging Cabo Delgado terrorism risks. South Africa business pressure: A Gauteng High Court ordered Spar to vacate a Midrand shopping centre, strengthening Shoprite’s expansion as grocery competition for prime retail space intensifies. Migration tensions with economic spillovers: South Africa’s anti-illegal immigration drive is blamed for labour shortages and business disruptions, while government reiterates rejection of xenophobia and says enforcement is the State’s responsibility.

Mozambique Energy & Industry: Mozambique resolved a long-standing coal mining dispute via an ICSID settlement, clearing the way for renewed investment momentum in the extractives sector. Mozambique Gas & Local Content: At CASP in Maputo, Eni Mozambique said Mozambique’s LNG boom depends on whether local firms can meet international contract standards, not just on laws—highlighting the push for Mozambican participation in the Rovuma Basin value chain. Regional Trade & Infrastructure: Tanzania’s new Mbamba Bay Port is nearing completion (about 60%) and is expected to boost Southern Africa’s trade, tourism, fishing and investment links across Lake Nyasa. AI Governance: China launched WAICO and Mozambique is among the founding African states; the organisation aims to coordinate AI strategies and standards while narrowing the tech gap. South Africa Retail: A Gauteng High Court ruling ordered Spar to vacate a Midrand shopping centre, strengthening Shoprite’s expansion drive and intensifying competition for prime retail space. South Africa Migration & Xenophobia: South Africa’s Inter-Ministerial Committee rejected xenophobia and vigilantism, stressing repatriation is the State’s responsibility amid ongoing anti-immigrant tensions. South Africa Security: Two SANDF members died after falling into an abandoned mine shaft during Operation Prosper against illegal mining in Gauteng, with investigations underway.

Mozambique Energy & Mining: Mozambique has resolved a long-standing coal mining dispute through an ICSID settlement, restoring a contested concession and clearing the way for a potential takeover by a major Indian steelmaker—an investor-confidence boost for the extractives sector. Mozambique Local Content & Jobs: The government approved a 2026–2046 National Cooperative Development Program to formalise 10,000 co-ops, integrate 1.5 million informal operators, and create 500,000 jobs, with targets for youth and women and links to agriculture, fisheries, forestry and mining supply chains. Mozambique LNG & Procurement: At Maputo’s CASP conference, Eni Mozambique said the key to capturing LNG value locally is competitiveness of Mozambican firms, citing over $1bn in contracts already awarded to local businesses. Regional Security: SADC ministers called for stronger cooperation on conflict, terrorism and emerging threats, noting progress in Mozambique’s national dialogue while flagging Cabo Delgado terrorism risks. South Africa Retail & Competition: A Gauteng High Court ordered Spar to vacate a Midrand shopping centre, paving the way for Shoprite’s expansion and underlining intensifying grocery competition. South Africa Migration Backlash: South Africa continues processing deportations and repatriations, with government reiterating rejection of xenophobia and vigilantism amid ongoing regional concern. South Africa Illegal Mining: After two SANDF soldiers died during an anti-illegal mining operation, MACUA urged parliament to probe the full illegal mining value chain, including high-level beneficiaries. UK Aid Cuts: NGOs warn Britain’s planned aid reductions could hit Mozambique and Malawi hardest, with Mozambique facing steep cuts by 2029. AI Governance: Indonesia joined WAICO as a founding member to accelerate AI development and governance cooperation, with Mozambique listed among founding states. Data Centres Investment: Raxio Group passed $380m in committed capital as AI-driven demand lifts contracted power capacity across its African data-centre footprint, including Mozambique.

Mozambique Business & Policy: Mozambique has announced a plan to formalise 10,000 co-ops under a 2026–2046 National Cooperative Development Program, aiming to bring 1.5 million informal operators into the formal economy and create 500,000 jobs by 2046, with targets for youth and women leadership and support across agriculture, fisheries, forestry and mining. Private Sector Reform: At the 21st Annual Private Sector Conference in Maputo, the economy minister pledged deeper public-private dialogue to cut the costs of doing business, improve liquidity and legal certainty, and monitor reforms with a new action plan and dialogue model. Power & SME Linkages: CTA and the Mphanda Nkuwa Hydroelectric Project signed a cooperation agreement to integrate SMEs into the future Zambezi infrastructure supply chain, as Mozambique targets major capacity expansion. Energy & Gas: Mozambique is also moving to deepen economic cooperation with Portugal, with leaders citing trust, rule-of-law reforms and a more attractive business climate for investment. Health Regulation: ANARME ordered an immediate suspension of malaria, HIV and HIV/syphilis RDTs from Meril Diagnostics, citing critical quality management failures flagged by WHO and national health institutes. Regional Migration Shock (South Africa): South Africa’s inter-ministerial committee says it is facilitating deportation and repatriation while rejecting vigilantism and xenophobia, reporting 53,449 foreign nationals processed by July 11—figures dominated by Malawians, followed by Zimbabweans and Mozambicans. Mining & Investment Signals: Total Graphite paused production at its Vatomina mine in Madagascar for optimisation work, while pointing to cash support and ongoing Mozambique feasibility study progress; separately, FDI analysis shows Africa’s inflows in 2025 skewed heavily toward minerals, hydrocarbons and energy infrastructure. AI & Global Cooperation: Mozambique is listed among founding members of a new World AI Cooperation Organisation (WAICO), reflecting growing regional participation in AI governance discussions.