AGP Executive Report

Green Industrialization & Climate Policy: UN ECA and South Africa’s environment ministry wrapped a two-day workshop validating regional studies on innovative climate action to accelerate green industrialization across Malawi, Mozambique, Namibia, South Africa, Zambia and Zimbabwe, with participants agreeing on national priorities for policy coherence and technology transfer. Lake Transport Upgrade (Mozambique Region): Mozambique’s LNG logistics momentum continues as MSC launched the Afungi Shuttle linking Afungi with feeder connections from Nacala and Maputo, aiming to move construction materials, industrial equipment and spare parts for the Afungi LNG project more efficiently. Mozambique AI Governance: Mozambique moved to formalise AI rules after public consultations, drafting a National Artificial Intelligence Strategy to set legal, institutional and regulatory frameworks for safe, transparent and responsible AI use in public and private sectors. Business Recovery Funding (Mozambique): In Nacala, President Daniel Chapo announced $74m via the Catalytic Fund to support business recovery, domestic production and small-scale producers after cyclones and extreme weather, with 93 companies receiving support. Cement Capacity Boost (Mozambique): Cimentos de Moçambique tripled output at its Nacala plant to 1.2m tons/year after a $110m investment, aiming to supply northern Mozambique and expand exports. Medicines Oversight (Mozambique): ANARME reported 20.8m meticais worth of SNS medicines stolen in H1 2026, with inspections leading to seizures and criminal cases, including closures of 17 pharmacies. Regional Trade & Logistics Context: Separate coverage highlights SACU and AfCFTA trade gains and broader push to strengthen export capability and logistics corridors across Southern Africa.

Mozambique Business Recovery: Mozambique’s Catalytic Fund has released $74m for business recovery under the MozRural programme, backing 93 cyclone-affected firms in Nampula, Cabo Delgado and Tete to boost domestic production and exports. Cement Expansion: Cimentos de Moçambique (Huaxin) has tripled Nacala cement capacity to 1.2m tons/year after a $110m investment, adding jobs and enabling clinker production for northern supply plus exports to the Comoros and Madagascar. Health Supply Integrity: ANARME says medicines and medical-surgical supplies worth 20.8m meticais were stolen from the national health system in H1 2026, with 580 inspections leading to seizures and five criminal cases. Regional Logistics & Mining Links: NRZ and BBR have started rail exports of lithium concentrate from Gwanda to Maputo Port, with the first 1,000 tonnes moving by freight train. Cross-Border Trade Pressure: A regional transport study estimates border disruption costs R15–R16bn a year, with long queues at key crossings including routes tied to Mozambique. Climate Risk for Industry: The AfDB warns a “super” El Niño could cut GDP by 1–2% in hard-hit countries, threatening food, water, infrastructure and migration—raising pressure on Mozambique’s reconstruction and supply chains.

Business Recovery Funding: Mozambique’s Catalytic Fund released $74m for business recovery under MozRural, backing 93 firms hit by cyclones Chido and Jude and other extreme weather across Nampula, Cabo Delgado and Tete, with a second tranche due later this month. Cement Expansion: Cimentos de Moçambique (Huaxin Cement) says it has lifted Nacala cement capacity from 390,000 to 1.2m tons/year in a $110m investment, boosting jobs and enabling clinker production for northern supply plus exports. Health System Theft Crackdown: ANARME reports 20.8m meticais worth of medicines and medical-surgical supplies stolen from the National Health Service in H1 2026, alongside inspections, seizures and pharmacy closures. Mining Logistics Link: Zimbabwe’s NRZ and BBR started shipping lithium concentrate from Gwanda to Maputo Port by rail, with the first 1,000-ton train departing on a newly commissioned siding. Regional Trade Disruption Costs: A transport conference study estimates cross-border disruption costs Southern Africa R15–R16bn annually, with border queues running from 7 to 70 hours. Maritime Security Shock: A Mozambique-flagged LPG tanker (DISHA) carrying 28 Indian crew was attacked in Iranian waters; the Indian Embassy says all crew are safe, as Gulf shipping risks remain elevated. Climate Risk to Industry: AfDB warns a strengthening El Niño could hit Southern Africa’s growth, with drought and floods threatening GDP and migration pressures.

Labour Crunch in Southern Africa: South Africa’s farms and factories are feeling the shock of a foreign-worker exodus after anti-migrant protests and enforcement, with growers warning of unpicked citrus and disrupted harvests. Maritime Security & Trade Disruption: The US says its naval blockade on Iran remains fully active, redirecting 12 commercial vessels and disabling two; it specifically cites a Mozambique-flagged tanker (M/T Lavine) disabled in the Gulf of Oman. Regional Connectivity for Industry: A look at AfCFTA’s limits points to practical bottlenecks—roads, ports, customs and border posts—showing why intra-Africa shipments still detour and cost more. Energy Supply Risk for Industry: South Africa’s “gas cliff” focus highlights how reduced gas flows from southern Mozambique could ripple into chemicals and manufacturing that rely on Pande-Temane gas. Logistics Cost of Delays: A Southern African Transport Conference study estimates cross-border disruption costs R15–R16bn yearly, with border queues at major gateways like Lebombo and Beitbridge running into days. Climate Shock to Production: Reuters reports an impending “super” El Niño could cut affected African GDP by 1–2% and trigger migration, threatening food and water security. Mozambique-China Business Links: A Maputo entrepreneurs meeting on logistics and infrastructure reportedly signed 24 cooperation agreements worth about USD 150m, aiming to strengthen industrial and trade connections.

Maritime Security: A Mozambique-flagged LPG tanker, DISHA (IMO 8818219), was attacked in Iranian territorial waters near the Strait of Hormuz, but the Indian Embassy in Tehran confirmed all 28 Indian crew members are safe and that it is monitoring with local authorities. Regional Trade & Logistics: Zimbabwe’s NRZ and Beitbridge Bulawayo Railway have started rail exports of lithium concentrate from Gwanda to Maputo Port, with the first 1,000-tonne train moving via the Gwanda–Beitbridge line and onward to Chicualacuala. Port & Energy Connectivity: Tanzania is rehabilitating Mbamba Bay Port to support regional trade, including new coal shipments to Malawi, with Mozambique expected to benefit from expanded lake and maritime activity. Cross-Border Costs: A Southern African Transport Conference study estimates border disruption costs South Africa R15–R16bn a year, citing long queues at key gateways like Lebombo and Beitbridge. Business & Investment Links: In Maputo, a China–Portuguese-speaking countries entrepreneurs meeting signed 24 cooperation deals worth about $150m, focused on logistics infrastructure and trade. Security Risk Watch: Russia urged stronger protection for shipping in the Gulf of Aden and Mozambique Channel amid rising pirate and terrorist activity.

Maritime Security: India’s Tehran embassy says all 28 Indian crew aboard Mozambique-flagged LPG tanker DISHA (IMO 8818219) are safe after an attack in Iranian territorial waters near the Strait of Hormuz, as US-Iran tensions disrupt one of the world’s key energy corridors. Regional Trade & Logistics: A study at the Southern African Transport Conference estimates cross-border disruption costs South Africa’s economy R15–R16bn a year, with border delays at Lebombo, Beitbridge, Groblersbrug and Vioolsdrift running from 7 to 70 hours. Mining Power & Industrialization (Mozambique): Vulcan (Jindal Group) invests $160m in Moatize, Tete, to install a 300MW power plant to electrify mine operations and the rail corridor, cutting diesel use. SME Finance (Mozambique): Mozambique’s CTA warns SMEs and agricultural/logistics firms struggle to access credit due to weak digital records and limited financial histories, urging better data systems to unlock lending. Energy Sector Shock (Mozambique): South32 reports $117m costs from the Mozal aluminium smelter shutdown tied to electricity price disputes, highlighting how power pricing can quickly hit industrial output.

Afreximbank Leadership: Afreximbank has appointed Peter Adeshola Olowononi as Regional Director for Southern Africa, with a renewed five-year push on industrialization, beneficiation and keeping more mineral and commodity value in Africa, targeting sectors like mining, oil & gas, agriculture and tobacco. Maritime Security for Mozambique-linked Shipping: A Mozambique-flagged LPG tanker (Meda/Disha) carrying 28 Indian crew was attacked in Iranian territorial waters near the Strait of Hormuz; the Indian embassy says all crew are safe, underscoring how Middle East tensions keep disrupting global energy shipping routes. Mozambique Energy for Industry: Vulcan (Jindal Group) is investing $160m in a 300MW power plant at its Moatize coal operations in Tete, aiming to electrify mining, processing and the rail corridor while cutting diesel use and feeding surplus power to the grid. Industrial Shock in Mozambique: South32 says Mozal aluminium smelter shutdown costs it $117m after electricity-price disputes, with production and sales falling as the plant moved to care-and-maintenance. SME Finance Bottleneck: Mozambique’s CTA warns SMEs and agricultural and logistics operators struggle to access finance because many lack structured digital records and traceability needed for lenders to assess risk. Policy on Cost of Living: President Daniel Chapo says Mozambique rejected proposals that would raise the cost of living, while still calling for reforms that protect citizens and support sustainable growth.

Power & Digital Infrastructure: Zimbabwe’s Plumtree–Victoria Falls fibre upgrade is complete, with Powertel and Paratus positioning it as a model for strategic state-enterprise investment and stronger regional connectivity. Mining Electrification: Vulcan inaugurated a $160m, 300MW power plant at Moatize (Tete) to electrify mine operations, cut diesel use and feed surplus power to Mozambique’s grid. Aluminium Shock: South32 says Mozal’s shutdown over electricity-price disputes has driven $117m in costs, with production and sales sharply down and thousands of jobs affected. Energy for Industry: President Daniel Chapo reiterated that energy projects in Cabo Delgado are meant to spur industrialization and jobs, while ENI stressed local content so gas investment builds domestic capacity. Logistics Pressure: A study warns cross-border disruption at key gateways costs South Africa R15–R16bn a year, with border queues running into days and hitting regional trade. Finance Bottleneck for SMEs: Mozambique’s CTA says SMEs and agro-producers struggle to access credit because they lack structured digital records and traceability needed for risk assessment. Cost of Living Politics: President Chapo says government rejected proposals that would raise living costs, amid broader fiscal reform pressure. Shipping & Northern Trade: MSC launched the Afungi Shuttle feeder linking Afungi–Nacala and Maputo–Afungi to move LNG project cargo faster. Conservation & Tourism: Mozambique plans to open 29 conservation areas to more private concessions to lift tourism revenue and jobs, but policy consistency remains a concern. Community Tensions: Clashes in Nampula’s Larde district followed police action over alleged stolen iron linked to Kenmare, leaving officers injured and weapons seized amid local anger.

Mozambique Petroleum Reform: Mozambique has revised its Petroleum Law (Law No. 8/2026), replacing the 2014 framework and expanding coverage to areas like emissions control and regasification, while tightening state participation and adding new contract structures. Energy for Industry: President Daniel Chapo says Mozambique wants to become a regional energy hub, using Rovuma Basin gas and planned hydropower to drive industrialization, jobs, and local value chains rather than just exports. Local Content Push in Gas: ENI reiterates that gas investment must translate into Mozambican capacity building, with training and supplier access efforts aimed at boosting participation in Rovuma Basin projects. Gas Supply Risk for Neighbours: Analysts warn of a “gas cliff” as Mozambique’s Pande-Temane supply to South Africa declines after 2028, threatening industrial feedstock and raising pressure on regional energy planning. Digital Infrastructure: Bubble Cloud Mozambique wins an advanced licence from INTIC to run two data-centre availability zones in Maputo and Beluluane, supporting business continuity and the push to keep critical data in-country. Shipping & LNG Logistics: MSC launches the Afungi Shuttle, linking Afungi with feeder connections from Nacala and Maputo to move construction and industrial cargo for the LNG project. Regional Power Investment: SADC calls for more investment in energy infrastructure and cross-border transmission to lift electrification and expand electricity trade. Conservation Concessions Debate: Mozambique’s plan to open more conservation areas to private concessions aims to lift tourism revenues and jobs, but critics warn policy inconsistency and weak management still undermine investor confidence. Business-to-Business China Strategy: CTA urges Mozambique and China to shift from trade-only ties to joint production, technology transfer, and value-chain building, prioritizing agro-industry, energy, logistics, construction, manufacturing, and digital services. Security Flashpoint at Kenmare: Police and residents clash in Nampula’s Larde district after an alleged iron theft linked to Kenmare Resources, leaving officers injured and highlighting tensions around mining operations.

Gas & LNG Negotiations: With Strait of Hormuz disruptions lifting insurance costs, Asian and European LNG buyers are set to push Qatar and the UAE for lower prices and stronger supply guarantees, shifting bargaining power toward buyers. Mozambique Energy Strategy: President Daniel Chapo says energy projects in Cabo Delgado (Rovuma Basin) worth over US$50bn should drive industrialization, jobs and value addition—not just exports. Local Content Push: ENI argues Mozambique’s gas investment must translate into domestic benefits via training and supplier development, citing participation by 400+ Mozambican companies. Petroleum Policy Update: Mozambique has revised its Petroleum Law (Law No. 8/2026), expanding scope and tightening rules around national participation and value-chain industrialization. Shipping & Logistics: MSC launched the Afungi Shuttle, linking Afungi with Nacala and Maputo to move LNG construction cargo through one booking. Regional Power Integration: SADC calls for more investment in energy infrastructure as the region lags on electrification, highlighting key interconnectors including Malawi–Mozambique and Mozambique–Zambia. Community Impact of Gas: Communities accuse gas firms of broken promises and destitution, while research claims profits from Mozambique gas have largely flowed abroad. Trade & Industry Links: CTA urges Mozambique–China ties to shift toward joint production, technology transfer and value chains across agro-industry, energy, logistics and manufacturing. Risk & Investment Climate: A global risk ranking flags Mozambique among the more vulnerable markets, reflecting investor concerns. Security Flashpoint: Police and residents clashed in Larde (Nampula) during an operation involving alleged stolen iron linked to Kenmare Resources, leaving officers injured.

Energy & Industrialisation: Mozambique President Daniel Chapo told the Maputo CEO Summit the country wants to become a regional energy hub, using hydropower and Rovuma LNG to drive processing, jobs and corridor-linked industrial growth, with a push toward universal electricity access by 2030. Shipping & LNG Supply Chains: MSC launched the Afungi Shuttle, linking Afungi in northern Mozambique with dedicated feeder rotations from Nacala and Maputo to move construction materials, machinery and industrial cargo for the LNG project. Aluminium Trade Pressure: A new U.S. incentive programme under Section 232 aims to expand domestic aluminum smelting by offering lower import rates for firms that invest in onshoring—raising fresh competitive pressure for Africa’s major aluminum exporters, including Mozambique’s Mozal. Regional Logistics for Minerals: Zimbabwe’s NRZ moved its first 1,000-tonne lithium concentrate train to the Port of Maputo via the Beitbridge Bulawayo Railway corridor, signaling a shift from truck-heavy exports to cheaper rail-linked logistics. Food Safety & “One Health”: President Chapo backed stronger animal health systems to protect food safety, including veterinarians’ involvement in the IGSAE technical-scientific council and tighter oversight across slaughterhouses, transport and traceability. Business Links: Mozambique and Egypt agreed to deepen cooperation in agriculture, trade, maritime transport, logistics and training, while Mozambique’s chamber highlighted Macao as a partner for identifying business contacts in mainland China.

Lithium Logistics: Zimbabwe’s NRZ has moved its first 1,000-tonne lithium concentrate train to Mozambique’s Port of Maputo, using a rail handover via Beitbridge and Chicualacuala—an integrated corridor meant to cut costs and boost freight volumes. Trade & Investment Links: Mozambique and Egypt agreed to deepen cooperation across agriculture, trade, maritime transport, logistics, and technical training, with security and counter-terrorism capacity-building also on the agenda. Business Connections to China: Mozambique’s Chamber of Commerce says Macao can help identify and connect Mozambican firms with mainland China, prioritising agriculture, agribusiness, agro-industry, tourism, logistics and the blue economy. Food Safety & Regulation: President Daniel Chapo backed “One Health” and animal health as a pillar of food safety, supporting veterinarians’ role in monitoring slaughterhouses, transport and traceability under IGSAE reforms. Development Finance: Mozambique appointed Dino Foi as FNDS chairman, as the fund prepares for its 2026–2030 investment programme and development hubs. Energy Performance: Cahora Bassa operator HCB exceeded first-half 2026 targets, generating 6,399.02 GWh and reporting higher reservoir recovery after drought restrictions.

Lithium Logistics: Zimbabwe’s NRZ has secured a rail-based export route for lithium concentrate, dispatching its first 1,000-tonne trainload from Gwanda to the Port of Maputo in Mozambique, cutting reliance on costly trucking and easing road congestion and border delays. Rail Corridor Investment: Beitbridge Bulawayo Railway (BBR) is also commissioning rail upgrades, including a US$1.5m lithium transhipment siding, to shift bulk minerals from road to rail along the North–South Corridor. Energy & Industry: Cahora Bassa operator HCB says it exceeded first-half 2026 energy targets, generating 6,399.02 GWh and reporting higher revenues and net profit, supported by improved reservoir storage after drought. Regional Cooperation: Belarus and Mozambique are moving from talks to implementation, planning a financial mechanism via the Development Bank of Belarus to fund joint projects, including agricultural mechanisation and value-added farm outputs. Food Systems Risk: A new WHO-linked analysis highlights unsafe food as a major cause of illness and child deaths—an issue Mozambique’s food and agro-industries can’t ignore as they scale production and processing.

Energy & Power: Cahora Bassa operator HCB says it beat its first-half 2026 power targets, generating 6,399.02GWh (+13%) and lifting reservoir storage after drought-hit lows, with revenues around US$263m and net profit above US$115m. LNG & Logistics: Eni is running a bid for an integrated onshore logistics base in Pemba to support Mozambique’s growing LNG push, with work likely to include land (10–15ha) plus quayside-linked support facilities. Rail & Trade: Beitbridge Bulawayo Railway (BBR) commissioned a US$1.5m lithium transshipment siding in West Nicholson, with its first lithium concentrate consignment already moving to the Port of Maputo—aimed at shifting bulk minerals from road to rail. Governance & Social Security: Mozambique’s Prime Minister urged new public institution leaders to act with integrity and transparency, citing INSS financial scandals and the need to expand social security coverage for informal and agricultural workers. Humanitarian Pressure (Cabo Delgado): Johanniter warns 1.1m people in northern Mozambique need help, with aid reaching only about half, as displacement from violence continues to rise. FDI & Tourism: Mozambique’s IDC is seeking a strategic equity partner for Lux-Isle, a 5-star, 60-key ultra-luxury private island resort in the Topuito Isles, expected to open next year. Cross-border Finance: The Bank of Mozambique says northern provinces still lag on financial service coverage despite digital gains, with Maputo city/province leading access.

Mozambique–Belarus Industrial Push: Belarus and Mozambique move to deepen cooperation with a focus on agricultural mechanisation and industrial development, including a contract to build four mechanisation centres and plans for blended fertiliser production, plus use of Mozambique’s ports and logistics to reach Southern Africa. Humanitarian Pressure in Cabo Delgado: A new warning says 1.1 million people in northern Mozambique need help, with 919,000 in Cabo Delgado, and only about half currently receiving aid—highlighting urgent needs in healthcare, food, education and protection. Financial Inclusion Gap: Mozambique’s central bank reports poor financial service coverage in the north (Nampula, Cabo Delgado, Niassa, plus Zambezia), even as digital access grows unevenly. Public Sector Integrity: The Prime Minister urges new public institution leaders to strengthen transparency and oversight, citing INSS financial scandals and the need to expand social security coverage beyond informal and agricultural workers. Energy/Logistics Deal: Eni launches a bid process for an integrated onshore logistics base in Pemba to support Mozambique’s LNG build-out, with works potentially spanning 10–15 hectares and logistics services for offshore and onshore operations.

Belarus–Mozambique Ties: Belarus’ foreign minister Maxim Ryzhenkov met President Daniel Chapo in Maputo and discussed agricultural mechanisation, security cooperation, industrial sovereignty and fertilizer production, with Mozambique also set to host Belarusian-backed mechanisation centres. Agriculture & Food Security: Mozambique and Belarus agreed to create a technical and financial mechanism to bring Belarusian agricultural technologies into Mozambique’s family farming sector, aiming to bridge the gap between hand tools and tractors. Humanitarian Pressure in Cabo Delgado: A German NGO warns about 1.1 million people needing help in northern Mozambique, with only about half receiving aid; urgent needs include healthcare, food, education and protection amid ongoing displacement. Financial Inclusion Gap: Mozambique’s central bank says northern provinces still have poor financial service coverage despite digital gains, while Maputo city/province leads access points. Energy & LNG Logistics: Eni launched an expression of interest for an integrated onshore logistics base in Pemba to support Mozambique’s LNG buildout linked to Offshore Area 4. Public Sector Integrity: The Prime Minister urged new public institution heads to improve transparency and oversight, citing INSS financial scandals and the need to expand social security coverage. Health Innovation Push: Mozambique’s health research chief called for higher African investment in science and health technologies to avoid dependence on the global north. Trade & Connectivity: Astral Aviation resumed its weekly Nairobi–Guangzhou freighter service, restoring direct air cargo links that can feed Mozambique-bound supply chains. Mining Governance: Mozambique resolved a major coal mining dispute via ICSID settlement, clearing the way for renewed investment momentum.