AGP Executive Report

Regional Trade & Investment: Mozambican President Daniel Chapo used the 50th Dar es Salaam International Trade Fair to push Tanzania and Mozambique to act as a single investment destination, betting on energy, agriculture, mining, tourism, logistics and infrastructure and calling for stronger cross-border value chains and corridor upgrades. Port Digitalisation: Mozambique’s Port of Maputo moved ahead with its first Port Community System, selecting Kalé Logistics Solutions as technology partner to connect maritime and logistics players into one digital platform. Finance Watch: Mozambique’s banks kept the Prime Rate at 15.50% for July, warning that borrowing conditions remain tight for both households and firms. Drug Enforcement: Mozambique’s SERNIC incinerated 3.7 tonnes of fentanyl seized at Maputo Airport, arresting suspects including a customs official. Security & Transport Compliance: South African police arrested two men (including a Mozambican national) over illegal blue lights fitted to a private vehicle, with court appearances set for 6 July.

Port & Trade Tech: Maputo Port Development Company awarded Mozambique’s first Port Community System to Kalé Logistics Solutions, aiming to link vessel, customs, terminals, trucking/rail and payments into one digital platform. Regional Integration: President Daniel Chapo used Tanzania’s DITF to push stronger Mozambique–Tanzania value chains and AfCFTA implementation via ports, energy, transport and digital logistics. Finance: Mozambique’s banks kept the Prime Rate at 15.50% in July, warning borrowing costs remain tight for families and investment-linked firms. Security & Justice: SERNIC incinerated 3.7 tonnes of fentanyl seized at Maputo Airport, arresting at least four suspects including a customs official. Infrastructure Resilience: Gaza’s Xai-Xai saw World Bank-funded emergency works begin to rehabilitate dams and reservoirs, targeting flood risk reduction and protection of hundreds of thousands. Industry & Jobs: Chapo’s security visit to Cabo Delgado’s Northern Operational Theater included plans to move the command closer to operations to speed the fight against Islamist terrorism. Mining Costs: Tanzania-focused coverage highlights fuel-efficient mining trucks gaining ground as firms chase lower operating costs.

Port & Logistics Digitisation: Maputo Port Development Company has awarded Mozambique’s first Port Community System project to Kalé Logistics Solutions, aiming to streamline vessel, customs, terminal, and truck/rail movements through a unified digital platform. Banking & Cost of Credit: Mozambique’s banks’ Prime Rate stays at 15.50% for July, keeping financing conditions tight for households and firms. Regional Trade & Industrialisation: President Daniel Chapo urged Tanzania and Mozambique to build stronger regional value chains and logistics links as the 50th Dar es Salaam International Trade Fair opens; Tanzania’s Samia also hailed DITF’s role in trade growth. Drug Enforcement: SERNIC incinerated 3.7 tonnes of seized fentanyl at Maputo Airport, with arrests including a customs official, as authorities report a sharp drop in 2025 drug seizures versus 2024. Infrastructure Resilience: In Gaza, emergency works to rehabilitate dams and reservoirs across Limpopo, Incomáti and Búzi basins were launched with World Bank funding to reduce flood vulnerability. Mining & Equipment Costs (Regional): Tanzania-focused coverage highlights demand for fuel-efficient heavy trucks and locally assembled mining machinery—an operating-cost theme relevant to Mozambique’s construction and mining spend. Security & Migration Shock (Regional): Returnees are swelling at Beitbridge after South Africa tightened immigration enforcement, underscoring cross-border labour and logistics pressures.

AfCFTA Push for Industrial Jobs: Mozambique and Tanzania used the 50th Dar es Salaam International Trade Fair to urge faster AfCFTA rollout, stressing transport, digital links, energy, ports and regional logistics as the real path to economic freedom. Port Digitalisation: Maputo Port Development Company awarded Mozambique’s first Port Community System (PCS) to Kalé Logistics Solutions, aiming to streamline vessel, customs, trucking/rail and warehouse processes through one secure platform. Flood-Resilience Works in Gaza: Mozambique launched World Bank-funded emergency rehabilitation of reservoirs and dams (Xai-Xai, Incomáti, Búzi, Massingir and Macarretane) to protect 930,000 people and 120,000 hectares of farmland after the 2025/26 cyclonic season. Agriculture Seed Funding: Mozambique set aside $75m for certified seeds for the 2026/27 campaign, with traceability and anti-counterfeit certification targeted to be operational by September. Private Sector Investment Pipeline: CTA says CASP in Maputo (July 14-15) will discuss about $1.2bn in investment opportunities and push reforms to cut business costs and boost confidence. Mozambique LNG/Power Signals: TotalEnergies is encouraging firms to join Mozambique LNG efforts and launched a tender for a 7.1MW plant in Afunge, while Mozambique’s Gemfields CEO exit highlights ongoing Cabo Delgado-linked mining risk.

Mozambique Water Resilience: In Xai-Xai, Gaza province, Mozambique launched emergency rehabilitation of reservoirs and dams across the Limpopo, Incomáti and Búzi river basins, funded by the World Bank’s CERC with a 990m meticais budget, aiming to shift from flood response to longer-term reconstruction after the 2025/26 cyclonic season. Port Digitalisation: Maputo Port Development Company awarded Mozambique’s first Port Community System (PCS) to Kalé Logistics Solutions, creating a single digital platform to connect port users and integrate with Customs Single Window and other systems to speed trade and improve visibility. Agriculture Finance: Mozambique announced $75m for certified seed purchases for the 2026/27 campaign, targeting reduced reliance on imports after floods exposed seed-market gaps, with traceability and anti-counterfeit measures planned. Food Distribution Investment: Mega Group inaugurated a 60m meticais cash-and-carry commercial space in Maputo to expand wholesale/retail access, create 29 jobs, and prioritise Mozambican products. Energy-Industry Link: Mozambique’s Mozal aluminium remains excluded from South32’s $5.6bn Alcoa deal, with the plant still under care and maintenance due to unresolved electricity supply risks—highlighting how power constraints shape industrial output. Regional Trade Opportunity: Tanzania flagged underused export potential to Mozambique, including maize and non-alcoholic beverages, plus sweetened water and glass packaging containers, as Mozambique-Tanzania trade rises but gaps remain.

Port & Logistics Digital Push: Maputo Port Development Company awarded its Port Community System (PCS) project to Kalé Logistics Solutions, creating Mozambique’s first PCS to connect shipping, customs, terminals, trucking/rail and payments for faster, more transparent trade. Power & Industry Pressure: Mozambique’s electricity generation fell 9% year-on-year in May as tariffs kept climbing, adding strain for industrial users. Mining & Aluminium Shockwaves: South32’s Mozal smelter in Mozambique is excluded from Alcoa’s $4.1bn deal to buy most South32 aluminium assets, leaving Mozal’s future tied to unresolved power and restart talks. Agriculture Financing: Mozambique released $75m for certified seed purchases for the 2026/27 campaign, aiming to cut reliance on imports after floods exposed supply gaps and counterfeit seed risks. Private Sector Investment Pipeline: CTA says CASP in Maputo (July 14–15) will discuss about $1.2bn in investment opportunities to diversify the economy and boost jobs. Cross-border Trade Opportunity: Tanzania’s TanTrade flags underused export potential to Mozambique, especially maize, non-alcoholic beverages and sweetened water. Business & Finance Recognition: Banco BiG Moçambique won “Best Investment Bank Mozambique 2026,” highlighting continued growth in investment banking services.

Mozambique LNG: TotalEnergies’ chair in Mozambique urged local firms to plug into the Mozambique LNG project’s value chain, as the $20bn scheme ramps up after the Palma restart and continues building local participation. Solar for LNG: TotalEnergies also launched a tender for a 7.1MW photovoltaic plant in Afungi to support the LNG megaproject’s construction and operations. Italy–Mozambique sustainability: Maputo signed a memorandum with Italy to advance agroforestry and sustainable development, covering biodiversity, forests, soils, water, climate action and circular economy support. Mozal power crunch: South32’s Mozal aluminium smelter in Mozambique remains excluded from Alcoa’s $4.1bn to $5.6bn aluminium asset deal, with Mozal still on care and maintenance after failed power negotiations—leaving one of Mozambique’s biggest industrial assets in limbo. Mozambique media integrity: MISA Mozambique flagged a sharp rise in online disinformation, recording 81 cases in 2025, with fabricated and manipulated political content driving fraud risks. Industrial reliability services: Pirtek Africa highlighted demand for fast hydraulic hose and fitting support across mining, agriculture, construction and manufacturing—aimed at cutting downtime from equipment failures.

Mozambique LNG: TotalEnergies’ Mozambique LNG push gets a boost as the consortium launches a tender for a 7.1MW photovoltaic plant in Afungi, aimed at powering the LNG megaproject in Cabo Delgado after construction resumed in 2025 following the Palma attack. Energy Investment: TotalEnergies’ Mozambique LNG chair, Jean-Pascal Clémençon, urged local firms to join the project’s value chain, citing thousands of Mozambicans already working on site and broad onshore/offshore opportunities. Agroforestry & Environment: Italy and Mozambique signed a memorandum in Maputo to expand cooperation on sustainable development under Mozambique’s National Strategy for Agroforestry Systems, covering biodiversity, forests, soils, water, climate action and capacity building. Media & Digital Risk: MISA Mozambique flagged worsening online disinformation, recording 81 cases in 2025 (up from 28 in 2024), with politics the main target—an issue that can spill into business confidence and public trust. Aluminium Deal Impact: Mozambique’s Mozal smelter is excluded from South32’s sale of most aluminium assets to Alcoa, leaving Mozal’s future ownership unresolved while the wider transaction reshapes regional aluminium supply chains.

Cabo Delgado LNG Solar Tender: TotalEnergies launched a tender for a 7.1MW photovoltaic plant in Afungi (Palma), tied to the Mozambique LNG project’s resumed works after the 2021 Palma attack. Cabo Delgado Security & Development: President Daniel Chapo urged stronger surveillance against Islamist terrorism and said peace is key to unlocking investment across roads, energy, water, agriculture, industry, health and education. Education Crackdown: Nampula authorities arrested seven teachers over alleged drug sales linked to a provincial crackdown. Mozambique Mining Under Pressure: Gemfields’ Mozambique Ruby Mine (MRM) faces escalating security risks as attacks on nearby villages forced short operational pauses; the company also reported results from its Trade Select ruby auction. Regional Trade & Logistics: Afreximbank said Nigeria’s intra-Africa trade rose to $9.02bn in 2025, boosted by AfCFTA tariff concessions and new logistics corridors—relevant for Mozambique’s import/export competitiveness. Aluminium Value-Chain Deals (Regional Impact): South32 agreed to sell most aluminium assets to Alcoa for up to $5.6bn, but Mozal in Mozambique remains on care and maintenance, keeping uncertainty around future output. South Africa Border Disruption Spillover: Kosi Bay traffic cleared after congestion from foreign nationals heading to Mozambique amid anti-immigration protests, a reminder of how regional mobility affects trade flows.

Cabo Delgado Security & Investment: Mozambique President Daniel Chapo urged stronger surveillance and renewed dialogue to tackle Islamist terrorism, saying peace is the condition for faster investment in roads, energy, water, agriculture, industry, health and education, while also moving to double Local Economic Development Fund support in every district. Education Crackdown: Mozambique authorities arrested seven teachers in Nampula over alleged involvement in drug sales at public schools, warning there will be no “truce” for wrongdoers and calling schools to stay spaces of learning. Regional Trade & Mobility: After hours of congestion at the Kosi Bay border post, traffic returned to normal as uMkhanyakude marches stayed peaceful, easing pressure from foreign nationals travelling to Mozambique amid anti-immigration demonstrations in South Africa. Mining Risk Signals: Gemfields’ CEO Sean Gilbertson will step down as the company flags escalating security and production challenges at its Mozambique ruby mine in Cabo Delgado, with recent auction revenue reported at $23.1m. Energy/Industry Context: A broader IEA update puts Nigeria at the top of Africa’s energy investment destinations in 2026, while highlighting a shift toward power, critical minerals and electrification—useful context for Mozambique’s industrial energy push.

Mozambique Mining & Industry: Gemfields says CEO Sean Gilbertson will step down on July 15, with CFO David Lovett taking over as interim CEO, as the company also flags security and production challenges at its 75%-owned Mozambique Ruby Mine; meanwhile, its first “Trade Select” ruby auction (June 22–29) pulled in $23.1m with 82 of 89 lots sold. Mozambique Energy & LNG: XRG and Eni sign deals to buy 32% stakes each in three upstream blocks in Argentina’s Vaca Muerta (feeding the Argentina LNG project), underscoring how LNG supply chains are being locked in upstream. Mozambique Infrastructure: Maputo’s Joaquim Chissano Avenue reopens after three years of drainage and sanitation works, improving sewerage for about 12,000 families and aiming to cut flooding and health risks. Mozambique Agriculture & Water: Flood damage to Gaza’s Lower Limpopo Irrigation Scheme is put at 23m meticais, with major crop losses, silted canals, damaged roads and pumping failures worsened by cable theft. Regional Labour & Trade Risk (SA-linked): South Africa’s June 30 anti-immigrant deadline is driving mass departures and supply-chain disruption, with Namibian truck operators pulling drivers and suspending deliveries over xenophobia fears. Regional Corporate Restructuring: BAT warns of further job cuts in South Africa as it shifts more roles into an AI-driven productivity push, after ending local tobacco production.

Infrastructure & Flood Resilience: Maputo’s Joaquim Chissano Avenue has reopened after three years of drainage and sanitation works, expanding sewerage for about 12,000 families and aiming to cut flooding and health risks—though the long disruption also shows how delays hit fuel use, deliveries and business reliability. Agribusiness & Food Inputs: Malawi’s fertilizer scandal deepens after police arrested Agrizone chief Matius Bonongwe over 670 bags of suspected counterfeit NPK, allegedly linked to Mozambique-sourced inputs—another reminder that fake farm inputs can quickly undermine harvests and food security. Energy & Regional Industry: Mozambique’s LNG remains under scrutiny as environmental groups raise concerns about coral reef damage from pipeline dredging and the climate impact of the revived Mozambique LNG project. Cross-Border Trade & Logistics: Namibian truck operators are pulling drivers from South Africa ahead of June 30 anti-immigrant protests, suspending deliveries as xenophobia fears disrupt cross-border trade. Human Capital & Migration Pressure: South Africa’s June 30 anti-migrant mobilisation is driving thousands of Malawians and other nationals into camps and repatriation queues, with Mozambique-born workers among those facing processing and document hurdles. Industrial Policy & Investment: Africa’s energy investment is projected to reach $110bn in 2026, but the IEA notes the continent still captures only 3.3% of global energy capital, keeping industrial electrification and power reliability central to growth.

Mozambique LNG & offshore engineering: Modec has secured a contract to supply the internal turret mooring system for Eni’s Coral Norte FLNG in Mozambique, a 3.6 mtpa project targeting first LNG in 2028, with Modec citing work on the earlier Coral Sul as the engineering baseline. Mozambique aviation restructuring: Mozambique’s transport secretary says patience is needed as Mozambique Airlines (LAM) is placed under management of other state firms (CFM, EMOSE and HCB) amid supplier-debt pressures after earlier rescue efforts. Mozambique food security pressures: A Mozambique-focused analysis warns that coastal livelihoods and fish supply are under strain from climate shocks and destructive fishing, with 2.7 million people needing urgent food assistance and child malnutrition still high. Climate entrepreneurship push (Mozambique): Village Capital’s ESEA programme has ended after backing 32 climate startups with $500k in grants across Ghana, Kenya, Malawi, Mozambique and Tanzania, including adaptation and food security ventures. Regional energy context: The IEA projects Africa’s energy investment at $110bn in 2026, with Nigeria leading despite weaker upstream spending, while electrification momentum continues under World Bank-backed Mission 300.

FLNG Engineering: MODEC has won a key contract to supply the internal turret mooring system for Eni’s Coral Norte floating LNG project in Mozambique, supporting safe weathervaning in cyclone-prone waters and building local capability for future regional work. Aviation Restructuring: Mozambique’s government is asking for patience as it restructures Mozambique Airlines (LAM), placing it under management of state firms including CFM, EMOSE and HCB amid supplier-debt pressures after past attempts to rescue the carrier. Maritime & Trade Finance: Afreximbank appointed Peter Adeshola Olowononi as Southern Africa Director of Regional Operations, with Mozambique included in the region covered by the Zimbabwe-based office. Food Security & Fisheries: Mozambique’s coastal communities remain central to food and jobs, but drought, cyclones and overfishing are worsening malnutrition risks, with El Niño raising the stakes for another potential food crisis. Public Health & Water Access: A new global map highlights how safe drinking water remains out of reach for large populations, underscoring the infrastructure gap Mozambique and the region still face.

Migration Crackdown Watch: South Africa’s June 30 anti-undocumented-migrant marches are being met with warnings of criminal and civil consequences for illegal transport blockades and intimidation, as the Inter-Ministerial Committee says the day will be “normal” and that everyone is entitled to constitutional protection. Repatriation Logistics: With pressure rising at temporary sites in KwaZulu-Natal, South Africa is relocating the main repatriation processing hub from eThekwini to Limpopo near Musina, after more than 15,000 Malawians were processed for deportation/voluntary repatriation. Regional Trade Finance: Afreximbank appointed Peter Adeshola Olowononi as Southern Africa Director of Regional Operations, covering Mozambique and 12 other markets. Mozambique Energy/Industry Angle: Mozambique’s LNG push continues as Technip-led teams win major Coral Norte FLNG work, while the wider region debates energy sovereignty and industrialisation. Fuel Cost Pressure: Zimbabwe’s fuel pricing remains high despite falling global oil benchmarks, keeping costs elevated for households and industry.

Fuel Fix Fails in Mozambique: Fuel queues returned in Maputo and Matola despite ARENE reporting 110,000 tonnes of diesel and 40,000 tonnes of petrol in stock; the real bottleneck is getting fuel released from bonded warehouses or “financial hold” without bank guarantees, with distributors saying regulated prices don’t cover import costs and warning transport and food prices will rise. Cabo Delgado Security Update: In northern Mozambique, Islamic State fighters attacked the Namabo military position in Macomia district on 22 June, killing five soldiers, as the conflict continues to disrupt stability and business activity. Regional Finance for Trade: Afreximbank appointed Peter Adeshola Olowononi as Southern Africa Director of Regional Operations (effective May 1), aiming to deepen financing across 13 countries including Mozambique. Energy Costs and Unrest Risk: A Reuters report says oil price drops ease near-term inflation in emerging markets, but civil unrest risk remains as household damage from earlier energy shocks lingers. Migration Pressure in Southern Africa: South Africa is relocating Malawian repatriation processing from KwaZulu-Natal to Limpopo, while the IMC says June 30 will be a normal working day—amid ongoing anti-migrant tensions.