Keep Us Strong WikiLeaks logo

Currently released so far... 97115 / 251,287

Articles

Browse latest releases

Browse by creation date

Browse by origin

A B C D F G H I J K L M N O P Q R S T U V W Y Z

Browse by tag

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
ETRD EAGR ETTC EAID ECON EFIN ECIN EINV ELAB EAIR ENRG EPET EWWT ECPS EIND EMIN ELTN EC ETMIN EUC EZ ET ELECTIONS ENVR EU EUN EG EINT ER ECONOMICS ES EMS ENIV EEB EN ECE ECOSOC EK ENVIRONMENT EFIS EI EWT ENGRD ECPSN EXIM EIAD ERIN ECPC EDEV ENGY ECTRD EPA ESTH ECCT EINVECON ENGR ERTD EUR EAP EWWC ELTD EL EXIMOPIC EXTERNAL ETRDEC ESCAP ECO EGAD ELNT ECONOMIC ENV ETRN EIAR EUMEM ENRGPARMOTRASENVKGHGPGOVECONTSPLEAID EREL ECOM ECONETRDEAGRJA ETCC ETRG ECONOMY EMED ETR ENERG EITC EFINOECD EURM EENG ERA EXPORT ENRD ECONEINVETRDEFINELABETRDKTDBPGOVOPIC EGEN EBRD EVIN ETRAD ECOWAS EFTA ECONETRDBESPAR EGOVSY EPIN EID ECONENRG EDRC ESENV ETT EB ENER ELTNSNAR ECHEVARRIA ETRC EPIT EDUC ESA EFI ENRGY ESCI EE EAIDXMXAXBXFFR EETC ECIP EIAID EIVN EBEXP ESTN EING EGOV ETRA EPETEIND ELAN ETRDGK EAIDRW ETRDEINVECINPGOVCS EPEC ENVI ELN EAG EPCS EPRT EPTED ETRB EUM EAIDS EFIC EFINECONEAIDUNGAGM EAIDAR ESF EIDN ELAM EDU EV EAIDAF ECN EDA EXBS EINTECPS ENRGTRGYETRDBEXPBTIOSZ EPREL EAC EINVEFIN ETA EAGER EINDIR ECA ECLAC ELAP EITI EUCOM ECONEFINETRDPGOVEAGRPTERKTFNKCRMEAID EARG ELDIN EINVKSCA ENNP EFINECONCS EFINTS ECCP ETC EAIRASECCASCID EINN ETRP EAIDNI EFQ ECOQKPKO EGPHUM EBUD ECONEINVEFINPGOVIZ ENERGY ELB EINDETRD EMI ECONEFIN EIB EURN ETRDEINVTINTCS EIN EFIM ETIO ELAINE EMN EATO EWTR EIPR EINVETC ETTD ETDR EIQ ECONCS EPPD ENRGIZ EISL ESPINOSA ELEC EAIG ESLCO EUREM ENTG ERD EINVECONSENVCSJA EEPET EUNCH ECINECONCS ETRO ETRDECONWTOCS ECUN EFND EPECO EAIRECONRP ERGR ETRDPGOV ECPN ENRGMO EPWR EET EAIS EAGRE EDUARDO EAGRRP EAIDPHUMPRELUG EICN ECONQH EVN EGHG ELBR EINF EAIDHO EENV ETEX ERNG ED
KMDR KPAO KPKO KJUS KCRM KGHG KFRD KWMN KDEM KTFN KHIV KGIC KIDE KSCA KNNP KHUM KIPR KSUM KISL KIRF KCOR KRCM KPAL KWBG KN KS KOMC KSEP KFLU KPWR KTIA KSEO KMPI KHLS KICC KSTH KMCA KVPR KPRM KE KU KZ KFLO KSAF KTIP KTEX KBCT KOCI KOLY KOR KAWC KACT KUNR KTDB KSTC KLIG KSKN KNN KCFE KCIP KGHA KHDP KPOW KUNC KDRL KV KPREL KCRS KPOL KRVC KRIM KGIT KWIR KT KIRC KOMO KRFD KUWAIT KG KFIN KSCI KTFIN KFTN KGOV KPRV KSAC KGIV KCRIM KPIR KSOC KBIO KW KGLB KMWN KPO KFSC KSEAO KSTCPL KSI KPRP KREC KFPC KUNH KCSA KMRS KNDP KR KICCPUR KPPAO KCSY KTBT KCIS KNEP KFRDCVISCMGTCASCKOCIASECPHUMSMIGEG KNNB KGCC KINR KPOP KMFO KENV KNAR KVIR KDRG KDMR KFCE KNAO KDEN KGCN KICA KIMMITT KMCC KLFU KMSG KSEC KUM KCUL KMNP KSMT KCOM KOMCSG KSPR KPMI KRAD KIND KCRP KAUST KWAWC KTER KCHG KRDP KPAS KITA KTSC KPAOPREL KWGB KIRP KJUST KMIG KLAB KTFR KSEI KSTT KAPO KSTS KLSO KWNN KPOA KHSA KNPP KPAONZ KBTS KWWW KY KJRE KPAOKMDRKE KCRCM KSCS KWMNCI KESO KWUN KPLS KIIP KEDEM KPAOY KRIF KGICKS KREF KTRD KFRDSOCIRO KTAO KJU KWMNPHUMPRELKPAOZW KEN KO KNEI KEMR KKIV KEAI KWAC KRCIM KWCI KFIU KWIC KCORR KOMS KNNO KPAI KBWG KTTB KTBD KTIALG KILS KFEM KTDM KESS KNUC KPA KOMCCO KCEM KRCS KWBGSY KNPPIS KNNPMNUC KWN KERG KLTN KALM KCCP KSUMPHUM KREL KGH KLIP KTLA KAWK KWMM KVRP KVRC KAID KSLG KDEMK KX KIF KNPR KCFC KFTFN KTFM KPDD KCERS KMOC KDEMAF KMEPI KEMS KDRM KEPREL KBTR KEDU KNP KIRL KNNR KMPT KISLPINR KTPN KA KJUSTH KPIN KDEV KTDD KAKA KFRP KWNM KTSD KINL KJUSKUNR KWWMN KECF KWBC KPRO KVBL KOM KFRDKIRFCVISCMGTKOCIASECPHUMSMIGEG KEDM KFLD KLPM KRGY KNNF KICR KIFR KM KWMNCS KAWS KLAP KPAK KDDG KCGC KID KNSD KMPF KPFO KDP KCMR KRMS KNPT KNNNP KTIAPARM KDTB KNUP KPGOV KNAP KNNC KUK KSRE KREISLER KIVP KQ KTIAEUN KPALAOIS KRM KISLAO KWM KFLOA
PHUM PINR PTER PGOV PREL PREF PL PM PHSA PE PARM PINS PK PUNE PO PALESTINIAN PU PBTS PROP PTBS POL POLI PA PGOVZI POLMIL POLITICAL PARTIES POLM PD POLITICS POLICY PAS PMIL PINT PNAT PV PKO PPOL PERSONS PING PBIO PH PETR PARMS PRES PCON PETERS PRELBR PT PLAB PP PAK PDEM PKPA PSOCI PF PLO PTERM PJUS PSOE PELOSI PROPERTY PGOVPREL PARP PRL PNIR PHUMKPAL PG PREZ PGIC PBOV PAO PKK PROV PHSAK PHUMPREL PROTECTION PGOVBL PSI PRELPK PGOVENRG PUM PRELKPKO PATTY PSOC PRIVATIZATION PRELSP PGOVEAIDUKNOSWGMHUCANLLHFRSPITNZ PMIG PREC PAIGH PROG PSHA PARK PETER POG PHUS PPREL PS PTERPREL PRELPGOV POV PKPO PGOVECON POUS PGOVPRELPHUMPREFSMIGELABEAIDKCRMKWMN PWBG PMAR PREM PAR PNR PRELPGOVEAIDECONEINVBEXPSCULOIIPBTIO PARMIR PGOVGM PHUH PARTM PN PRE PTE PY POLUN PPEL PDOV PGOVSOCI PIRF PGOVPM PBST PRELEVU PGOR PBTSRU PRM PRELKPAOIZ PGVO PERL PGOC PAGR PMIN PHUMR PVIP PPD PGV PRAM PINL PKPAL PTERE PGOF PINO PHAS PODC PRHUM PHUMA PREO PPA PEPFAR PGO PRGOV PAC PRESL PORG PKFK PEPR PRELP PREFA PNG PGOVPHUMKPAO PRELECON PINOCHET PFOR PGOVLO PHUMBA PRELC PREK PHUME PHJM POLINT PGOVPZ PGOVKCRM PGOVE PHALANAGE PARTY PECON PEACE PROCESS PLN PRELSW PAHO PEDRO PRELA PASS PPAO PGPV PNUM PCUL PGGV PSA PGOVSMIGKCRMKWMNPHUMCVISKFRDCA PGIV PRFE POGOV PEL PBT PAMQ PINF PSEPC POSTS PHUMPGOV PVOV PHSAPREL PROLIFERATION PENA PRELTBIOBA PIN PRELL PGOVPTER PHAM PHYTRP PTEL PTERPGOV PHARM PROTESTS PRELAF PKBL PRELKPAO PKNP PARMP PHUML PFOV PERM PUOS PRELGOV PHUMPTER PARAGRAPH PERURENA PBTSEWWT PCI PETROL PINSO PINSCE PQL PEREZ PBS

Browse by classification

Community resources

courage is contagious

Viewing cable 06MAPUTO847, MOZAMBIQUE: JUNE ECONOMIC DIGEST

If you are new to these pages, please read an introduction on the structure of a cable as well as how to discuss them with others. See also the FAQs

Understanding cables
Every cable message consists of three parts:
  • The top box shows each cables unique reference number, when and by whom it originally was sent, and what its initial classification was.
  • The middle box contains the header information that is associated with the cable. It includes information about the receiver(s) as well as a general subject.
  • The bottom box presents the body of the cable. The opening can contain a more specific subject, references to other cables (browse by origin to find them) or additional comment. This is followed by the main contents of the cable: a summary, a collection of specific topics and a comment section.
To understand the justification used for the classification of each cable, please use this WikiSource article as reference.

Discussing cables
If you find meaningful or important information in a cable, please link directly to its unique reference number. Linking to a specific paragraph in the body of a cable is also possible by copying the appropriate link (to be found at theparagraph symbol). Please mark messages for social networking services like Twitter with the hash tags #cablegate and a hash containing the reference ID e.g. #06MAPUTO847.
Reference ID Created Released Classification Origin
06MAPUTO847 2006-07-13 05:57 2011-08-25 00:00 UNCLASSIFIED Embassy Maputo
VZCZCXRO7351
RR RUEHDU RUEHJO RUEHMR RUEHRN
DE RUEHTO #0847/01 1940557
ZNR UUUUU ZZH
R 130557Z JUL 06
FM AMEMBASSY MAPUTO
TO RUEHC/SECSTATE WASHDC 5675
INFO RUCNSAD/SOUTHERN AFRICAN DEVELOPMENT COMMUNITY
RUEHLMC/MILLENNIUM CHALLENGE CORP  0064
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEHC/DEPT OF LABOR WASHDC
RUEATRS/DEPT OF TREASURY WASHDC
UNCLAS SECTION 01 OF 03 MAPUTO 000847 
 
SIPDIS 
 
SIPDIS 
 
AF/S FOR HTREGER AND JMALONEY 
JOHANNESBURG FSC FOR RDONOVAN 
JOHANNESBURG TDA FOR DSHUSTER 
USDOC FOR RTELCHIN 
MCC FOR SGAULL 
USAID FOR AA/AFR AND AFR/SA 
 
E.O. 12958: N/A 
TAGS: ECON EAID EINV ETRD MZ
SUBJECT: MOZAMBIQUE: JUNE ECONOMIC DIGEST 
 
 
MAPUTO 00000847  001.2 OF 003 
 
 
1. This is a brief summary of significant economic 
developments in Mozambique during June 2006.  We provide it 
as a supplement to our other reporting.  The items discussed 
are: 
 
-- IMF Completes Fourth Review Under PGRF Arrangement 
 
-- GRM Launches Second Five-Year Poverty Reduction Plan 
 
-- World Bank to Loan USD 20 Million to Mozambican Farmers 
 
-- Mozambican Beer Launched in London 
 
-- Fuel Prices Rise Again 
 
-- Germany to Provide USD 25 Million in Budget Support 
 
-- Road Sector to Receive USD 230 million in 2007 
 
-- New Currency Issued without Problems 
 
 
IMF Completes Fourth Review Under PGRF Arrangement 
--------------------------------------------- ----- 
 
2. On June 20 the Executive Board of the International 
Monetary Fund (IMF) completed the fourth review of 
Mozambique's economic performance under its existing Poverty 
Reduction and Growth Facility (PGRF) plan.  Completion of 
this review allowed for the release of an additional USD 2.4 
million to the Mozambican government (GRM). (Note:  This 
loan is part of approximately USD 16.7 million the IMF is 
providing Mozambique under the PGRF. End note.) 
 
3.  Mr. Takatoshi Kato, Deputy Management Director and 
Acting Chair of the Executive Board, characterized 
Mozambique's performance in 2005 as "strong, despite 
exogenous shocks".  Fiscal results were commendable and all 
performance criteria through end-March 2006 were met, 
according to Kato.  While the macroeconomic outlook remains 
favorable, vigilance will be required in light of volatile 
oil prices and unpredictable weather. 
 
4.  According to the IMF, the main challenges over the 
medium term are sustaining broad-based economic growth and 
making further inroads in alleviating poverty through 
implementation of 2006-2009 poverty reduction strategy. 
Mozambique launched its second poverty reduction strategy 
this month (see para 5 below). 
 
GRM Launches Second Five-Year Poverty Reduction Plan 
--------------------------------------------- ------- 
 
5. On June 23 the Mozambican government formally launched 
its second five-year "Plan of Action for the Reduction of 
Absolute Poverty" (PARPA II) in a ceremony chaired by the 
Minister of Planning and Development, Aiuba Cuereneia.  The 
plan document had been approved in May by the Cabinet of 
Ministers, after a long drafting process that included 
consultation with civil society and the donor community. 
 
6. PARPA II aims to reduce, by 2009, the percentage of the 
population living below the poverty line from 54 percent, 
the figure derived from the 2003 National Household Survey, 
to 45 percent.  The new plan maintains many of the same 
priorities of PARPA I, including more training in the 
education and health sectors, strengthening good governance, 
developing basic infrastructure, and improving macro- 
economic and financial management. 
 
7. Where PARPA II differs from its previous iteration is 
that it focuses on development at district level, something 
Guebuza has emphasized, as well as on creating a favorable 
environment for growth of the productive sector, 
particularly with respect to small and medium companies. 
PARPA II also attaches significant importance to investment 
in infrastructure.  (Note: In this regard Prime Minister 
Luisa Diogo has characterized 2006-2007 as the "year of 
civil construction" in Mozambique.  Projects planned include 
improvements to the national highway system and construction 
of the Zambeze and Rovuma bridges. End Note.) 
 
 
MAPUTO 00000847  002.2 OF 003 
 
 
8. Cuereneia stressed that the success of PARPA II will 
depend on close coordination between the government, civil 
society, and Mozambique's foreign donors and funding 
agencies.  He also emphasized the importance of timely and 
rational allocation of government resources.  The Minister 
stated that Mozambique's 128 districts will form the basis 
for all planning and development activities outlined in the 
PARPA II. 
 
9. Some observers have criticized the plan for being too lax 
in its goals and objectives.  During a June 27 talk in 
Maputo, UN-affiliated economist Jeffrey Sachs stated that 
PARPA II, although it contained the right elements, was not 
ambitious enough.  (Comment: Sachs repeated this view 
numerous times during his visit, going as far as to cite 
specific paragraphs of the PARPA to illustrate how 
"ambition" was lacking in the document. End Comment.) 
 
World Bank to Loan USD 20 Million to Mozambican Farmers 
--------------------------------------------- ---------- 
 
10. The World Bank announced in June that it would make USD 
20 million available to smallholder farmers in the Zambezi 
valley via a credit facility to be disbursed through the 
International Development Association. 
 
11.  According to the World Bank, which deems this a market- 
led smallholder development project, long term 
environmentally sustainable agricultural development by 
smallholder farmers is essential for continued macroeconomic 
growth.  To support such growth, the Bank intends to provide 
direct support to smallholder groups and other supply chain 
participants, as well as strengthening local level capacity 
within the context of the GRM's decentralization policy. 
 
12.  This project has four components.  The first component, 
Community Group Organization and Local Institutional 
Strengthening, focuses on empowering and building the social 
capital of farmer groups, women's groups and other supply 
chain participants.  The second component, Agricultural 
Production and Marketing Development, is intended to provide 
technical support for market driven, broad-based sustainable 
agricultural development via technical assistance to 
stakeholders involved in production, marketing and 
processing of agricultural products.  The third component, 
Community Agricultural and Environment Investment, will 
provide financial resources and technical assistance to 
support agricultural related public and private investments. 
The last component focuses on continued capacity at the 
governmental level; the Management, Coordination and 
Monitoring and Evaluation component will work with the 
Directorate of Rural Development within the Ministry of 
Planning and Development to ensure effective management of 
the project. 
 
13.  The World Bank provides this money as a soft loan, 
payable over 40 years, which includes a ten-year grace 
period.  This pilot project is part of the World Bank's 
overall strategy to support development in the Zambezi 
valley, where the World Bank is already supporting bridge, 
road and rail projects.  If successful, the World Bank may 
extend the project to other areas of Mozambique. 
 
Mozambican Beer Launched in London 
----------------------------------- 
 
14.  On June 23 the Mozambican High Commissioner in London, 
Antonio Gumende, hosted an event launching a Mozambican 
beer, Laurentina, in Great Britain.  The launch was part of 
the High Commission's larger effort to promote tourism in 
Mozambique.  Both types of Laurentina, Clara (clear) and 
Preta (dark), will be available for purchase at select 
wholesalers.  Laurentina is produced in Maputo at the 
MacMahon (2M) brewery, owned by Cervejas de Mocambique, the 
local subsidiary of South African Breweries (SAB). 
Fuel Prices Rise Again 
----------------------- 
 
15.  The Mozambican Ministry of Energy increased fuel prices 
again in June.  The price of fuel oil rose by 54.9 percent; 
petrol increased by 10.9 percent; diesel fuel by 16.2 
percent.  The rise in jet fuel was slightly lower at eight 
 
MAPUTO 00000847  003.2 OF 003 
 
 
percent.  Cooking gas also increased by 11.9 percent.  The 
Ministry of Energy blamed the increases on rising import 
prices for all petroleum products and the depreciation of 
the metical against the US dollar since the last price rise. 
(Note.  The metical depreciated by 9.63 percent in that time 
period. End note)  Mozambique must import 100 percent of its 
fuel needs and is therefore very vulnerable to fluctuations 
in price and currency value. 
 
Germany to Provide USD 25 million in Budget Support 
--------------------------------------------- ------ 
 
16. Over the next two years, the German government, via its 
cooperation institute KFW, will grant approximately USD 25.4 
million to the Mozambican budget.  This will be the first 
budget support Germany has provided.  This direct budget 
support is intended to help Mozambique implement its Plan 
for the Relief of Absolute Poverty (PARPA II), but is not 
specifically earmarked for any project or program. 
Mozambique will receive half of the money in 2006 and half 
in 2007.  The Governor of the Bank of Mozambique, who signed 
the agreement along with KFW's representative in Maputo, 
stated that this direct budget support is a sign of trust on 
the part of Mozambique's partners, the fruit of Mozambique's 
economic stability, control of inflation and of the exchange 
rate. 
 
Road Sector to Receive over USD 200 million in 2007 
--------------------------------------------- ------ 
 
17.  Mozambique's road sector is set to receive USD 150 
million in donor funding in 2007.  The GRM will contribute 
an additional USD 80 million.  The multi-donor and multi- 
year (2007-2011) program eventually will put an estimated 
USD 1.14 billion towards construction, improvement and 
maintenance of Mozambique's road infrastructure. 
 
 
 
 
Transition to New Meticais Relatively Problem Free 
--------------------------------------------- ------ 
 
18.  At 12:01 a.m., July 1, Mozambique began circulating its 
new currency, the Nova Familia de Metical.  While some minor 
inconveniences arose, such as ATMs being inaccessible while 
waiting to be calibrated, there was no major disruption. 
Some Mozambicans have complained that they have not yet seen 
the new notes and some ATMs are still issuing the old notes, 
but these issues are expected to resolve themselves easily 
over the next months.  Both the new and the old currencies 
will circulate until December 31. 
 
DUDLEY