Over the course of this week, the country has seen major breakthroughs, most notably in asset recovery, court victories and advances in the energy sector. Key themes included the recovery of assets in the case of the hidden debts, a crucial victory in a British court, the reduction of the interest rate by the Bank of Mozambique and robust growth in natural gas revenues.
The hidden debts scandal, which rocked Mozambique almost a decade ago, remains a central narrative in the fight for transparency and accountability. On Tuesday, Mozambique’s Attorney General’s Office (PGR) announced the recovery of assets valued at around 400 million dollars associated with the case. These assets include residential property, warehouses and hotel units, as well as luxury vehicles. The recovered buildings have been used to accommodate state institutions, while the vehicles are being distributed according to their suitability. This recovery is the result of the convictions of 11 of the 19 co-defendants involved in the illegal loans obtained in 2013 and 2014 from the banks Credit Suisse and VTB.
In the same vein, Mozambique won a significant legal victory in the High Court in London against Privinvest, a Lebanese shipbuilder from the United Arab Emirates. Judge Robin Knowles ruled in Mozambique’s favour, ordering Privinvest to pay damages totalling more than 1.9 billion dollars. This verdict comes after allegations of bribery in projects related to the hidden debts. Privinvest has expressed its intention to appeal the decision, alleging injustices in the process.
In the financial sector, the Bank of Mozambique (BoM) announced a further reduction in the reference interest rate, from 15 per cent to 14.25 per cent, following recommendations from the International Monetary Fund (IMF). This decision marks the fourth reduction this year, with the aim of stimulating economic growth, which slowed to 3.2 per cent in the first quarter. The IMF emphasises that even with additional cuts, inflation should remain below 4%. The BoM, however, decided to keep the mandatory reserves at a high level, guaranteeing the stability of the currency.
Finally, Mozambique’s energy sector posted positive results, with a 30 per cent increase in revenues from natural gas exports in the first quarter of 2024, reaching 443 million dollars. This increase was driven by the start of exploration in Area 4 of the Rovuma Basin, despite the fall in international gas prices. Mozambique, which has the third largest natural gas reserves in Africa, sees this growth as an important step towards consolidating natural gas as one of its main exports.