The economic week was marked by contrasting developments, combining accelerating inflation, progress in new investments in hydrocarbon exploration, and the entry of the country’s largest industrial unit into an operational suspension regime. The period highlights an economy subject to logistical and energy pressures, while simultaneously showing signs of momentum in the extractive sector.
On the pricing front, the National Institute of Statistics reported that the Consumer Price Index (CPI) rose by 1.26% in January, more than double the variation recorded in December. The main pressure came from the food and non-alcoholic beverages division, with significant increases in coconut, lettuce, cabbage, tomato, onion, charcoal, and dried fish—products that contributed approximately 0.83 percentage points to the monthly change.
The inflationary acceleration occurred in a context of logistical constraints associated with floods that affected the country and temporarily disrupted traffic on National Road Number 1 (N1), compromising supply chains and pushing prices higher in several regions. Despite the monthly increase, accumulated inflation stood at 3.23%, remaining below levels recorded in previous years and far from the peaks observed in 2022.
In the energy sector, the Chinese state-owned oil company CNOOC confirmed that it will begin drilling blocks for hydrocarbon exploration in March in the offshore Save and Angoche basins, under concessions awarded in the sixth public tender launched in 2021. Initial work is expected to cover between five and six blocks, mostly located in deep waters.
The concessions include participation from the National Hydrocarbons Company and encompass areas distinct from Areas 1 and 4 of the Rovuma Basin, where natural gas megaprojects led by other multinationals are underway. The start of drilling represents the effective transition from the contractual phase to the operational phase and may strengthen prospects for diversifying the national extractive base. Currently, Mozambique has significant projects underway in the Rovuma Basin, including Coral South, already in production; the resumption of Mozambique LNG; and the Rovuma LNG project, whose final investment decision is awaited. CNOOC’s move into the drilling phase could broaden the range of active players in the sector and consolidate the country’s position as an emerging natural gas producer.
Reinforcing the previously announced collective dismissal, the Australian company South32 confirmed the suspension of activities at the Mozal aluminum smelter starting March 15, 2026, placing the facility under a “care and maintenance” regime due to the inability to secure sufficient electricity supply at competitive prices.
According to the group’s Chief Executive Officer, Graham Kerr, the company recorded losses of $372 million in the last fiscal year, worsened by drought conditions that affected hydroelectric production and by the absence of an agreement with alternative suppliers, including South Africa’s Eskom. The transition will entail estimated costs of $60 million, in addition to annual maintenance expenses of around $5 million.
The unit employs more than two thousand people directly and an equal number of outsourced workers, representing a significant share of national manufacturing employment. Measures announced include severance payments proportional to length of service, professional retraining allowances, and the temporary continuation of health insurance.
The government states that it is monitoring the process, reiterating efforts to mitigate structural impacts on employment, suppliers, and associated industrial chains.
Source: Diário Económico
