Logistics companies are upbeat about the outlook for Mozambique’s economy.“The growth prospects are more positive for the medium term, and hopefully by next year operations will be back on track – along with investments into the gas projects,” said Captain Jayendra Misra, a director of I. Messina (Moç) LDA, agents for Ignazio Messina & C.The company, which has been operating in Mozambique since 2009, was one of the first shipping companies to start calling Mozambican ports on a regular basis.“The positive economic outlook is important as it is critical for the economy in Mozambique to stabilise,” said Capt Misra, “especially after the damage done by the long-running “tuna bond” scam.”This scam saw conspirators arranging more than $2 billion in fraudulent loans from international investment banks for “front” projects, including the development of a tuna fishing boat f leet in Mozambique.“There are several challenges in Mozambique and they are varied. Over and above more economic stability, the volatility of the metical has to also be addressed. Furthermore, we are currently facing an onslaught of multiple and poorly thought out, highly biased legislations which, if implemented, will threaten the very existence of logistics companies and shipping agencies that have overseas shareholding.”Other issues are poor infrastructure and the high costs involved for shipping lines calling Mozambican ports. The insurgency in northern Mozambique has also increased the risk factor of the country.“As a company, we continue to closely monitor developments in Cabo Delgado that affect the oil and gas sector. There is no doubt that once things stabilise, development will get back on track and it will be a boost to the Mozambican economy.”Capt Misra said there were positive signs of an upward trend in economic activity – especially considering the impact of Covid-19. The pandemic was, however, starting to recede and the outlook was far more bullish.“The logistics sector in Mozambique caters largely to the hinterland countries such as Zimbabwe, Zambia and Malawi – hence developments here are closely tied to the situation in adjoining countries. Also, the Maputo-Johannesburg corridor is slowly gaining relevance. South African exporters of fresh produce are having a second look at exporting through Maputo, which is very good news.”He said the construction of the railway line between Moatize and the region of Sopinho and the deep water port of Macuse would offer more opportunity for development of ancillary industries and boost Mozambique’s economy even further. Over and above more economic stability, the volatility of the metical has to be addressed.– Captain Jayendra Misra
