Mozambique Plans to Reorganize or Sell 20 State Companies

Mozambique Plans to Reorganize or Sell 20 State Companies

MAPUTO, Mozambique, Capital Markets in Africa: Mozambique’s debt crisis has destabilized government operations and the country will have to reorganize 20 state-owned companies, privatize them or shut them down, President Filipe Nyusi said. The nation admitted in April to having $1.4 billion in loans it hadn’t disclosed to investors and last month failed to make a $178 million interest payment on one of the debts. “You are aware about the increase in our debt,” Nyusi told businessmen over…

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Investment | Gas May Transform Mozambique Even as Debt Darkens Confidence

Investment | Gas May Transform Mozambique Even as Debt Darkens Confidence

MAPUTO, Mozambique, Capital Markets in Africa: About 30 minutes down a pot-holed road from Vilanculos, where dhows ferry tourists to luxury resorts on Bazaruto island, Sasol Limited is ramping up output of a fuel that could transform the world’s 13th poorest nation. Vast gas discoveries hold the potential to boost Mozambique’s economy, more than three decades after the apartheid regime of neighboring South Africa backed rebels in a civil war that laid waste to the former Portuguese…

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Financing | Airports of Mozambique Plans to Reorganize $500 Million Debt

Financing | Airports of Mozambique Plans to Reorganize $500 Million Debt

MAPUTO, Mozambique, Capital Markets in Africa: Airports of Mozambique plans to restructure loans of $500 million after a slide by the nation’s currency against the dollar undermined the state-owned company’s ability to repay loans, its chairman said. The southern African nation has said it is in the process of restructuring another $535 million loan extended to state-owned Mozambique Asset Management after the company failed to meet a $178 million interest payment last month. The government admitted in…

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Fitch Cuts Mozambique Rating to CC Over Hidden Public Debt

Fitch Cuts Mozambique Rating to CC Over Hidden Public Debt

MAPUTO, Mozambique, Capital Markets in Africa: Fitch Ratings cut Mozambique’s credit to CC, indicating that a default of some kind is probable, after the southern African nation last month disclosed more than $1 billion of previously hidden debt. The grade was cut by one notch from CCC, according to a statement e-mailed by the company Monday. The review was brought forward by five months because of a “material change in the creditworthiness of the issuer,” it said. “The…

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Investment | Renaissance Capital Moves Into Mozambique in Deal With Dominio

Investment | Renaissance Capital Moves Into Mozambique in Deal With Dominio

Maputo, Mozambique, Capital Markets in Africa: Renaissance Capital Limited is pushing into Mozambique to take advantage of what it says is increasing interest from foreign investors in the southern African country. The Moscow-based investment bank, which trades across 43 emerging and frontier markets, signed a partnership deal last week with Lisbon-based Dominio Capital Group, which has an office in Maputo, Mozambique’s capital. The agreement will make it easier for RenCap to work on deals for clients wanting…

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Financing | Mozambique’s Nyusi to Visit China Next Week, Presidency Says

Financing | Mozambique’s Nyusi to Visit China Next Week, Presidency Says

Maputo, Mozambique, Capital Markets in Africa: Mozambican President Filipe Nyusi will visit China later this month, his office said, weeks after western donors withdrew budgetary support following the southern African nation’s admission to holding more than $1 billion of undeclared loans. Nyusi’s week-long visit, which received parliament’s go-ahead last week, begins May 16, an official at the presidency said Friday. “The authorization should not be a blank check to contract more debt,” Lutero Simango, the leader of…

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Greece’s Secret Debt Evoked in Mozambique $1 Billion Hole

Greece’s Secret Debt Evoked in Mozambique $1 Billion Hole

LAGOS, Nigeria, Capital Market in Africa — For some Africa watchers, Mozambique’s confession of a $1 billion debt hole seems strangely reminiscent of another country — one that’s also in contentious talks with the International Monetary Fund. The predicament reminds analysts including Rand Merchant Bank’s Nema Ramkhelawan-Bhana of Greece’s concealment of its true fiscal dilemma in the late 1990s and early 2000s. The IMF said last week that Mozambique failed to disclose government-guaranteed loans provided by Credit Suisse Group…

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