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 06MAPUTO1496, September/October Economic Digest: Mozambique

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. #06MAPUTO1496.
Reference ID Created Released Classification Origin
06MAPUTO1496 2006-11-17 09:26 2011-08-25 00:00 UNCLASSIFIED Embassy Maputo
VZCZCXRO1948
RR RUEHBZ RUEHDU RUEHJO RUEHMR RUEHRN
DE RUEHTO #1496/01 3210926
ZNR UUUUU ZZH
R 170926Z NOV 06
FM AMEMBASSY MAPUTO
TO RUEHC/SECSTATE WASHDC 6424
INFO RUCNSAD/SOUTHERN AFRICAN DEVELOPMENT COMMUNITY
RUEHLMC/MILLENNIUM CHALLENGE CORP  0119
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEHC/DEPT OF LABOR WASHDC
RUEATRS/DEPT OF TREASURY WASHDC
UNCLAS SECTION 01 OF 03 MAPUTO 001496 
 
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: September/October Economic Digest: Mozambique 
 
MAPUTO 00001496  001.2 OF 003 
 
 
1. This is a brief summary of significant economic 
developments in Mozambique during September and October 
2006.  We provide it as a supplement to our other reporting. 
The items discussed are: 
 
-- USTDA Signs Grant with Aeroportos de Mocambique 
 
-- Labor Law Not Submitted to Parliament 
 
-- Inflation Less Than Four Percent Over First Three 
Quarters 
 
-- Tanzanians Purchase Defunct Textile Factory 
 
-- Hopes are High that South African Company will Revive 
Steel Industry 
 
-- Madgermanes Receive Shares of SOCREMO 
 
 
-- Illegal Trafficking of Precious Stones a Problem, 
Although Scope is Not Yet Known 
 
-- GRM Taking Action on Contraband 
 
 
USTDA Signs Grant with Aeroportos de Mocambique 
--------------------------------------------- -- 
 
2.  On October 20 USTDA Deputy Director Leocadia Zak signed 
a USD 445,000 grant agreement with Aeroportos de Mocambique 
that will provide for a feasibility study of the possible 
expansion of the Pemba, Nacala and Vilankulos airports. 
Signing the agreement with Ms. Zak were Charge d'affaires 
Elizabeth Raspolic and two members of the ADM board, Antonio 
Loureiro and Hermenegildo Mavale.  This feasibility study 
will further enhance the GRM's potential development of 
Mozambique's tourism industry, complementing USAID's current 
tourism project in the northern provinces of Nampula, Niassa 
and Cabo Delgado. (See Maputo 460.) 
 
 
Labor Law Not Submitted to Assembly 
------------------------------------- 
 
3.  As reported earlier, (see Maputo 1002 and 561), in 
September the Council of Ministers approved for submission 
to the National Assembly a controversial revision to the 
labor law.  Controversial because after two years of 
painstaking negotiation between unions, business groups, and 
the government, the Minister of Labor had unilaterally 
rolled back many of the changes that would have promoted job 
creation by making it less expensive to employ and dismiss 
people. 
 
4.  In the face of protests from the donors who had 
supported the process and the private sector (through the 
USAID-funding umbrella associatio of associations, CTA), 
the government has apparently decided to shelve the law 
until at least the next assembly (March, 2007). Although no 
reasos have been given, the law was not submitted to th 
parliament 30 days before the start of the sesson, and now 
could only be considered in the highy unusual event of a 
special presidential initiative.  It is not clear whether 
the delay will increase the chances of signiicant reform. 
 
Inflation Less Than Four Percent Over First Three Quarters 
--------------------------------------------- ------------ 
 
5.  The Centrl Bank of Mozambique announced in September 
thatinflation has been falling in Mozambique since Aprl, 
resulting in less than four percent inflation over the first 
three quarters of the year.  If this trend continues, the 
2006 rate will be below the GRM target of seven percent. 
Bank spokesman Valdemar de Sousa acknowledged that inflation 
also seemed to be well under control at the same time last 
year, but that seasonal price surges resulted in more than 
half of the 2005 inflation occurring in November and 
December.  As a result, the Bank is trying to prevent a 
similar spike this year - primarily through exchange rate 
stability. 
 
 
MAPUTO 00001496  002.2 OF 003 
 
 
 
Tanzanians Purchase Defunct Textile Factory 
------------------------------------------- 
 
6.  On October 9 the Tanzanian company METL (Mohammed 
Enterprises Tanzania Ltd) became the new 100 percent owner 
of Texmoque in the northern city of Nampula.  Texmoque 
closed its doors in 1994 while under state management.  In 
1996 the Portuguese MultiplierGroup purchased a 70 percent 
interest in the company (the GRM retained the remaining 30 
percent).  Multiplier was never able to successfully restart 
production.  METL currently runs textile plants in Tanzania 
and has promised to invest USD 20 million in new equipment 
and renovations.  METL plans to resume production in 2007, 
with approximately 400 workers. 
 
 
Hopes are High that South African Company will Revive Steel 
Industry 
--------------------------------------------- -------------- 
 
7.  On October 6 the South African steel company Mittal 
Steel signed an agreement to purchase the assets of two 
currently defunct companies - the steel rolling mill, CSM, 
and the wire-drawing company, Trefil.  A Portuguese investor 
purchased 60 percent of each company when they were 
privatized over 10 years ago, but never made the promised 
investmnt.  As a result, Trefil stopped production over a 
year ago, and CSM closed over five years ago.  Mittal is 
paying USD 11.4 million for the two companies' assets. 
Mittal states that this acquisition is part of its strategy 
to increase its sub-Saharan presence.  In an initial 
investment phase Mittal will invest over USD 10 million 
dollars to make the factories operational.  Current 
estimates are that this phase will create around 200 jobs 
and that the factories will be back in production in about 
six months, reaching an annual production of 72,000 tons 
(CSM) and 32,000 tons (Trefil) within two years.  As part of 
its concession agreement, Mittal committed to the 
development of the steel industry and mining sector and has 
identified several opportunities for steel industry growth 
in Mozambique, including fields of primary and downstream 
iron and steel manufacturing, development of coal and 
metallurgical coal mines and related processing plants and 
opportunities in the development of iron ore mine and 
related processing plants. 
 
 
Madgermanes Receive Shares of SOCREMO 
------------------------------------ 
 
8.  On September 28 the Forum of Mozambican Returnees (the 
Forum) from the former German Democratic Republic (also 
collectively known as the Madgermanes) received the GRM's 
shares in and profits from the micro-credit company SOCREMO. 
This transfer was part of a final settlement of the 
Madgermanes' claims announced by the Ministry of Labor in 
December 2005.  The Forum sold the shares back to SOCREMO, 
making the total netted from the shares plus profits 
approximately USD 846,000. The forum must now decide how to 
handle the money and will likely invest for future returns. 
Simply sharing the money would give each registered 
Madgermane only slightly more than USD 50 each.  There are 
nearly 22,000 Madgermane, all of whom were workers under a 
migrant labor agreement with the GDR. 
 
 
Illegal Trafficking of Precious Stones a Problem, Although 
Scope Not Yet Known 
--------------------------------------------- -------------- 
 
9.  On September 27 the GRM seized over 350 tons of precious 
stones, worth around USD 700,000, which were illegally 
extracted from the western province of Tete.  This is 
Mozambique's first sizeable seizure of precious stones, and 
the Ministry of Mineral Resources has admitted that 
trafficking is a problem, but the scale is not yet known. 
According to the Ministry, turmalines and aquamarines are of 
particular interest to smugglers, but other stones and 
minerals (including gold) are seeing an increase in illegal 
trafficking.  In an attempt to address the problem, the 
Ministry has increased inspections and placed technical 
 
MAPUTO 00001496  003.2 OF 003 
 
 
staff in all districts with mining interests. 
 
 
GRM Taking Action on Contraband 
------------------------------- 
 
20.  In both September and October the GRM took action 
against contraband and IPR violations, seizing counterfeit 
cigarettes and illegally imported electronic goods. 
According to the head of Customs public relations, there 
were at least three seizures of counterfeit cigarettes 
during the month of September, reflecting the GRM's 
awareness of not only health concerns, but that piracy 
damages the interests of legitimate companies.  Over the 
last two years much progress has been made in Mozambique 
regarding counterfeited goods and illegal imports as the 
result of a joint private sector/government task force that 
investigates and responds to suspected IPR violations. 
 
 
Dudley