AGP Executive Report

Mozambique–China Infrastructure: Mozambique marked 10 years of China cooperation with visible upgrades, including the Maputo–Katembe Bridge and new water and sanitation projects that are boosting local services and livelihoods. Agro-Industry Push: President Daniel Chapo inaugurated a Manica slaughterhouse and sausage factory (Planalto Fresh Produce Agro-industrial Complex), aiming to cut pork imports and spur jobs while urging more local food production to reduce dependence amid the fuel-driven cost squeeze. Mining Governance: Mozambique is tightening mining rules with a 15% state stake requirement and moves toward more local processing, as the country seeks to capture more value from graphite and other minerals. Regional Water Security: Shared river management is getting a stronger policy footing as ministers meet under INMACOM to coordinate Incomati and Maputo basin governance, linking water cooperation to agriculture, energy and climate resilience. Security & Mining Enforcement: South African police arrested a Mozambican national near Agnes Mine for unlawful ammunition possession during Operation Vala Umgodi, alongside seizures of explosives and rounds—another sign of crackdowns on illegal mining networks. South Africa Xenophobia Spillover: Mozambique reported deaths of its citizens amid xenophobic attacks in South Africa, while repatriation efforts moved hundreds of Mozambicans home and more were in transit. ICT & Services Export Context: Mozambique’s wider regional push for exportable services echoes in the region’s ICT growth stories, including Malawi’s scaling of digital exports—relevant for Mozambique’s own industrial diversification agenda.

Mozambique–China Development: Mozambique marked the 10th anniversary of its strategic partnership with China with visible progress in infrastructure and services, including the Maputo-Katembe Bridge and new water and sanitation projects that are improving daily living in Maputo and Tete. Mozambique Mining Policy: Mozambique moved to tighten state control over mining by taking a 15% stake in domestic ventures and pushing for local processing, echoing a wider regional push to capture more value from critical minerals. Cabo Delgado LNG Finance Scrutiny: In South Africa, Absa shareholders questioned the bank’s financing of TotalEnergies’ resumed $20bn LNG project in Cabo Delgado amid human-rights concerns, keeping Mozambique-linked energy investment under a sharper ESG spotlight. Regional Energy Linkages: Eskom signed heads of agreement with Zululand Energy Terminal to secure LNG infrastructure for Richards Bay gas-to-power, with Mozambique gas supply expected to decline—raising the stakes for regional gas and power planning. Trade and Logistics Context: UNICEF warned that Middle East-linked transport disruptions are driving up shipping costs and delaying aid deliveries, a reminder of how logistics shocks can ripple into costs across Africa. Tech Services Expansion: Smart Hands Africa expanded its Supermicro services partnership across multiple African markets including Mozambique, supporting installation, maintenance and break-fix capacity for data-centre and enterprise infrastructure.

Mozambique Mining Policy: Mozambique moves to tighten state control over minerals, taking a 15% stake in domestic mining ventures and pushing local processing by restricting exports of non-processed resources, a bid to capture more value from graphite and other battery- and electronics-linked commodities. Regional Energy Deals: South Africa’s Eskom signs heads of agreement with Zululand Energy Terminal to secure LNG import and gas-to-power infrastructure for the Richards Bay project, aiming to strengthen energy security and jobs as Mozambique gas supply faces decline. Humanitarian Logistics: UNICEF warns Middle East-linked transport disruptions are raising shipping and air-cargo costs, slowing aid deliveries and squeezing budgets for children, with delivery times extended via longer sea routes around the Cape. Cross-Border Migration Pressure: Xenophobic violence in South Africa triggers more repatriation demand, with Nigeria reporting over 1,000 citizens registering for voluntary return amid safety concerns. ICT Exports Push: Malawi’s Sparc Systems unveils a roadmap to scale ICT services exports across Africa, highlighting growing foreign-currency inflows from digital work. Tech Services Expansion: Smart Hands Africa becomes an authorised Supermicro services partner, expanding post-sales support across multiple African markets including Mozambique.

Mozambique Mining Overhaul: President Daniel Chapo has signed new mining rules requiring the state to take a minimum 15% free, non-dilutable stake in all mining ventures and pushing local processing by restricting exports of unprocessed or semi-processed minerals unless firms get special authorisation. Cabo Delgado LNG Scrutiny: Mozambique’s LNG project in Cabo Delgado is back in the spotlight as Absa faces shareholder pressure over its financing of TotalEnergies’ $20bn LNG plant amid human-rights concerns. Energy Infrastructure Push: South Africa’s Eskom signed a heads of agreement with Zululand Energy Terminal to secure LNG import and regasification infrastructure for a planned 3,000MW gas-to-power project in Richards Bay, aiming to strengthen regional energy security as Mozambique gas supply declines. Regional Trade Drive: Namibia’s president urged businesses to use AfCFTA to expand beyond borders after a Swakopmund summit highlighted low intra-Africa trade and the need for industrial integration. Food and Manufacturing Costs: Tiger Brands warned consumers may face higher prices as fuel, logistics and input costs squeeze manufacturers, with some categories likely to see cost pass-through. Cross-border Tensions: Xenophobic violence in South Africa is driving more Nigerians to register for voluntary repatriation, with 1,094 applicants reported so far. Agribusiness Diversification: Zimbabwe’s GI-TOC flagged illicit arms and contraband risks, while Mozambique’s wider value-chain push is echoed by SADC’s push to build energy-transition mineral value chains locally.

Mozambique Mining Reform: Mozambique has enacted sweeping new mining rules requiring the state to hold at least a 15% free, non-dilutable stake in all mining ventures and pushing local processing by restricting exports of unprocessed and semi-processed minerals unless firms get special authorisation, with 10% of mining revenues earmarked for a local development fund. Regional Energy & Power: Mozambique’s role in the Southern African grid remains in focus as South Africa moves to secure LNG-to-power momentum, signing agreements tied to the Richards Bay gas-to-power push and highlighting cross-border energy security needs. Tech & Infrastructure Services: Smart Hands Africa expanded its footprint as an authorised Supermicro services partner, offering installation, break-fix support and maintenance across multiple African markets including Mozambique. Trade & Investment Signals: Indonesia is deepening Sub-Saharan trade partnerships, with Mozambique among the countries engaged as Indonesia seeks broader investment and market resilience. Industry Context: Across the region, policy debates on logistics and industrial competitiveness continue, with freight rail and port reforms in South Africa aimed at improving export flows.

Mining & Industrial Policy: Mozambique’s President Daniel Chapo signed a new mining law requiring 15% free, non-dilutable state ownership in all mining ventures and pushing local mineral processing, as graphite demand for batteries keeps rising. Critical Minerals & Value Addition: The rules also tighten export controls on unprocessed and semi-processed minerals unless firms get special authorization, aiming to capture more value from strategic resources. Regional Trade & Business Climate: Mozambique’s push for stronger mining control lands amid wider regional economic pressures, including South Africa’s logistics and power-sector strain that can affect cross-border supply chains. Skills for Industry: JA Africa and the ExxonMobil Foundation launched STEM Africa 2.0, adding 4,000 youth aged 14–17 across Africa (including Mozambique) with STEM and AI training tied to energy and innovation pathways. Energy & Infrastructure Context: South Africa’s freight logistics overhaul is moving toward private rail access and port expansion, highlighting how transport reforms can reshape regional industrial competitiveness. Agriculture Funding Pressure: Eric Opoku again warned that many African governments miss the 10% agriculture budget target, calling it a major brake on food security and rural development.

Mozambique Mining Policy: President Daniel Chapo signed a law requiring 15% free, non-dilutable state ownership in all mining ventures and local processing of minerals, as Mozambique pushes to capture more value from battery materials like graphite. Regional Trade & Security: Mozambique said five nationals were killed in South Africa xenophobic attacks, while South African police reported two deaths, as mobs forced foreigners into community halls along the south coast. Logistics Reform: South Africa’s freight overhaul is gaining momentum, with private rail and port upgrades on the agenda as policymakers push for more competition and faster movement of goods, including options via northern ports. Chinese Mining Scrutiny: Chinese nationals reportedly abandoned illegal Haroni River riverbed mining in Chimanimani after public exposure and regulatory pressure. Mozambique Business Support: The European Development Fund will disburse about €130m for Mozambique’s economic recovery, backing grants for business development, innovation, equipment and capacity expansion. Energy Context: South Africa’s electricity generation fell 9% year-on-year in April amid softer demand, even as the grid remains broadly stable.

LNG Investment Outlook: Mozambique’s Rovuma LNG project could add about $11bn to GDP annually, with Standard Bank projecting major jobs, tax and balance-of-payments gains as the ExxonMobil-led scheme nears final investment decisions. Critical Minerals Value Chains: The UN Economic Commission for Africa launched a €15m SADC project to build environmentally and socially responsible, decarbonised critical minerals value chains, with Mozambique among the implementing countries. Fisheries Governance: SADC reappointed the board of the Regional Fisheries Monitoring Control and Surveillance Centre in Maputo, keeping Stanley Ndara as chair and prioritising vessel registers and capacity to curb illegal fishing. Child Labour Crackdown: Manica reports 170+ minors still in illegal mining, despite two years of campaigns that rescued and reintegrated 500+ children into schools. Regional Security & Mobility: Mozambique condemned South Africa’s handling of xenophobic violence after reports of Mozambican deaths in Mossel Bay, while hundreds of citizens sought safety and repatriation. STEM Skills Push: ExxonMobil Foundation launched STEM Africa 2.0 to train 4,000 students (including in Mozambique) in STEM and AI skills for the digital economy.

Energy & LNG: Standard Bank’s Mozambique unit says the Rovuma LNG project could add about $11bn to GDP annually, with up to $150bn in state revenue over 30 years and major job and tax boosts as production targets 2030. Critical minerals & industry: UN ECA launched a €15m SADC project to build environmentally and socially responsible, decarbonised critical minerals value chains, with Mozambique among the implementing countries. Mining & labour risks: Manica reports 170+ minors still involved in illegal mining despite a two-year crackdown, highlighting ongoing child-labour pressure around gold sites. Agribusiness & resilience: Mozambique extended its livestock vaccination campaign to 15 July 2026 after imported vaccine delays, covering millions of cattle and additional poultry and rabies drives. Regional fisheries governance: SADC reappointed the board of the MCSCC in Maputo to strengthen illegal fishing controls, cut donor reliance, and roll out a regional fishing-vessel register. Human security spillover: Mozambique accused South Africa of failing to protect citizens after xenophobic violence in Mossel Bay, while South African police confirmed fewer deaths—an issue now driving repatriation planning. Skills for growth: ExxonMobil Foundation launched STEM Africa 2.0 to train 4,000 students (including in Mozambique) in STEM and AI for the digital economy.

Critical Minerals & Industry: UN ECA launched a €15m, five-year SADC project (2026-2031) in Lusaka to help DRC, Mozambique, Namibia, South Africa, Zambia and Zimbabwe move from extraction to decarbonised, inclusive critical minerals value chains, with jobs and environmental safeguards at the centre. Maritime & Trade Security: MSC said a vessel was struck by projectiles at Iraq’s Umm Qasr port, with Iran-linked claims raising fresh risks for regional shipping and essential trade routes. Rail & Logistics Investment: Traxtion closed an over-subscribed $86m equity raise to back Africa’s biggest private rail build-out, as South Africa opens rail slots to new train operating companies beyond the Transnet monopoly. Mozambique-SADC Fisheries Governance: SADC renewed the board of the Maputo-based Regional Fisheries Monitoring Control and Surveillance Centre, keeping Stanley Ndara as chair and pushing vessel registers and reduced donor reliance. Mozambique Livestock & Food Security: Mozambique extended its livestock vaccination drive to July 15 after imported vaccine delays, while planning renewed domestic veterinary vaccine production. Cross-Border Tensions: Mozambique accused South Africa of failing to protect its citizens after reports of xenophobic attacks in Mossel Bay killed Mozambicans; South African police confirmed only two deaths linked to assaults, while repatriation efforts ramp up. Digital & AI for Industry: Yango Group launched Yango Tech in Africa, targeting B2B AI and digital infrastructure for mobility, healthcare, finance and retail.

Livestock & Food Security: Mozambique extended its nationwide livestock vaccination drive to July 15 after delays in imported vaccine supplies, while also planning to restart domestic veterinary vaccine production with about $600,000 in investment. Energy & LNG: Mozambique’s LNG momentum is drawing South Korean interest as major gas projects resume, with TotalEnergies’ Mozambique LNG and other Rovuma Basin partners back in focus. Regional Trade & Diplomacy: Mozambique’s external ties also came through in talks between South Africa’s Deputy President Mashatile and India’s Jaishankar, with trade, infrastructure and digital cooperation on the agenda. Cross-Border Safety: Mozambique reported five citizens killed in South Africa’s Mossel Bay amid xenophobic attacks, while South African police confirmed two deaths, as repatriation efforts for hundreds of Mozambicans continue. Humanitarian Logistics: UN agencies warned that Middle East-linked shipping disruptions are pushing up transport costs, with school materials to Mozambique now costing more than double. Digital & Business Tech: Yango Group launched Yango Tech in Africa, pitching AI and digital infrastructure solutions for enterprises and public-sector organisations.

Xenophobia and repatriation: Mozambique’s government says five citizens were killed in xenophobic attacks in South Africa’s Mossel Bay, with about 800 Mozambicans affected; 300 returned home and the rest are being sheltered in Western Cape as repatriation begins. Health and research: KNUST has joined the DENSTAR Project consortium to accelerate dengue vaccine development in Africa, backing licensure and evaluation of a single-dose tetravalent vaccine starting June 1, 2026. Regional power policy: A report highlights how Southern Africa is moving from state-only transmission control toward Independent Transmission Providers, with Mozambique named among Lusophone reform leaders. Maritime sanctions enforcement: France intercepted the sanctioned Russian-linked tanker Tagor in the Atlantic, ordering it toward France for checks; Russia called it illegal “international piracy,” escalating diplomatic friction. Mozambique fisheries governance: SADC reappointed Stanley Ndara to chair the regional fisheries monitoring control and surveillance centre based in Maputo, aimed at tackling illegal fishing. Film industry ties: Locarno Open Doors selected Mozambique–South Africa project “Chapa 100” for 2026, alongside other African co-production and talent development picks.

Mozambique Macro & Investment: The AfDB forecasts Mozambique GDP growth of 2.1% in FY2026 and 3.5% in 2027, citing a recovery in the extractive sector, easing inflation to 5.7%, and a widening fiscal deficit driven by higher interest costs and weaker project grants. Cabo Delgado Security: Mozambique says it will secure funding to keep Rwandan troops in northern Cabo Delgado, giving Mozambican forces time to reorganise capacity, equipment and technology as EU support timelines end. Regional Power Markets: A new Southern Africa trend is emerging as governments move from state transmission monopolies toward Independent Transmission Providers, with Mozambique and Lusophone neighbours among the key players. Food & Agriculture: Mozambique’s food-security pressure is highlighted by a flood crisis that threatens supplies, with FAO seeking major aid to support affected communities. Trade & Industry Links: South African firms signal interest in boosting investment in Mozambique ahead of a Maputo investment summit, pointing to opportunities across finance, mining, energy, tourism and infrastructure. Governance & Local Finance: Jozini municipality reports financial irregularities and cost-control steps to stabilise services and restart abandoned projects amid cross-border crime pressures. Maritime & Sanctions Spillovers: France intercepted the sanctioned Russian-linked tanker Tagor in the Atlantic, underscoring how “shadow fleet” enforcement is tightening—an issue that can ripple into regional shipping and logistics costs.

Mozambique Macro Outlook: The AfDB forecasts Mozambique GDP growth of 2.1% in FY2026 and 3.5% in 2027, with extractives recovery, stronger private consumption and investment growth driving the rebound, while inflation is expected to ease to 5.7% and the fiscal deficit to widen. Cabo Delgado Security Funding: Mozambique says it will secure funds to keep Rwandan forces operating in Cabo Delgado, giving Mozambican troops time to train and prepare as EU support timelines remain unclear. China Trade Push: Mozambique’s state visit to China highlights new economic doors, with Maputo positioned to benefit from China’s zero-tariff policy for least developed countries and broader African expansion from May 2026. Transport & Logistics Reform: A proposed shift to allow private operators onto Mozambique’s rail network, alongside ideas for coastal shipping revival and new urban rail links in Maputo/Matola, signals a move away from a single-operator model. Food & Farm Resilience: ICRISAT expands climate-resilient chickpea seed production in Mozambique and the region, aiming to cut fertilizer pressure and strengthen dryland food security.

Mozambique–China Trade Boost: Mozambique’s state visit to China highlights new economic doors as Beijing’s zero-tariff policy expands from 1 May 2026, giving Maputo wider non-tariff access for exports. Cabo Delgado Security Funding: The Mozambican government says it will secure funds to keep Rwandan troops in northern Cabo Delgado, buying time to train and prepare Mozambican forces as EU support timelines end. Rail Reform for Investment: Transport officials in Maputo are consulting on new railway access rules to attract private operators, improve transparency and competition, and strengthen rail-port logistics links. Agriculture Finance Push: Mozambique secured $500m for agriculture and livestock via World Bank disbursements in two phases, targeting staple foods (rice, maize, beans, potatoes) and protein production (chickens, eggs, soybeans, cattle and goats). Energy Infrastructure Hit: Massingir Dam’s electrical system needs about six million meticais after vandalism damaged cables, transformers and switchboard equipment, forcing temporary generator use to keep minimum operations running. Regional Investment Angle: South African firms signal interest in boosting investment in Mozambique’s strategic sectors ahead of a Maputo investment summit planned for October/November.

Rail Reform for Mozambique: Maputo is consulting on new rules to open the national rail network to private operators, aiming for more competition, clearer capacity allocation, and better rail-port interoperability—key for competitiveness in the Maputo/Matola corridors. Energy Security & Infrastructure: Gaza’s Massingir Dam needs about six million meticais to restore vandalised electrical equipment, with officials warning the asset is vital for water supply, irrigation and flood control. Agriculture Funding: Mozambique says it has secured $500m from the World Bank in two phases to back PEDSA 2036 and MozAgriBiz, targeting staple crops plus livestock and protein (chickens, eggs, soy, cattle and goats). Investment Push for Fragile Economies: AfDB and the World Economic Forum launched the HRI Roadmap to channel private investment into frontier states, naming Mozambique among pilot countries. Regional Business Signals: ISUZU began shipping first new D-MAX units from South Africa to 30+ African markets including Mozambique, linking vehicle supply to agriculture, mining, construction and logistics. Policy & Finance Watch: Mozambique also challenged TotalEnergies’ Mozambique LNG cost overrun claims via a third-party audit.