Mozambique: Do attacks leave multinationals at an advantage in negotiations with government?

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Mozambique: Do attacks leave multinationals at an advantage in negotiations with government?

3:01 CAT | 26 Jun 2018

In file CoM

Attacks in Cabo Delgado should not weaken the government in negotiations with multinationals which want to operate in the country, former minister of Mineral Resources Esperança Bias says – the government will continue to carry through its programmes.

Armed attacks in the northern province of Cabo Delgado, Mozambique, are overshadowing exploration and exploitation of natural resources in the region. If multinationals operating there show signs of wanting to freeze their activities, large companies interested in the market may use the instability in negotiations with the government.

DW Africa interviewed Esperança Bias, who currently is a member of the ruling Mozambican Liberation Front (FRELIMO), on the situation.

DW Africa: Northern Mozambique is experiencing armed attacks that are creating destabilization and jeopardizing the investment or interest of multinationals in the gas field. How do you see this situation?

Esperança Bias (EB): I want to believe that this is a temporary situation and that we must all work to ensure the Mozambique project and the government’s programme can be fulfilled. The government is responding, and I believe that the companies themselves should support the government in order to make Mozambique a favored destination for investment and investing in Mozambique a popular solution. So, everyone must help solve the problem that is unfortunately affecting Mozambique, particularly Cabo Delgado. And it is important for everyone to understand that delaying development is not only detrimental to the government, it also hurts the population. Mozambique has few employment opportunities and these projects will bring jobs. [Armed attacks] are not the best solution. If there are problems that can be resolved through dialogue, let them be brought to the table to come to an understanding.

DW Africa: This meeting in Germany with representatives of companies was perceived as an attempt to sell Mozambique in a positive way. In this context, do you think this can work? Will investors not feel drawn to this situation?

EB: I think investors have to have a long-term vision and not a short-term one. Again, I would like to invite German businessmen to invest in Mozambique directly and not through other countries. Mozambique is an independent, sovereign country. It has its own laws, its own environment, and there is no need to go to a third country to get to Mozambique – that doesn’t work. Mozambique’s doors are open. Companies are working in Mozambique, and I believe that most of them did not have to go through neighboring countries: they came directly to Mozambique.

DW Africa: To what extent can armed attacks jeopardize Mozambique in negotiations with those multinationals that are still negotiating with the government and those already in the field?

EB: Regarding companies that are already investing in Mozambique, I think that the issue emerging in northern Mozambique should not delay investment. As I said, if there is no joint effort, if there is no commitment, it is not Mozambique that loses, it is not the government. These companies have already invested and want to see a return on their investment. And this return can only come in an environment of peace and tranquility. As for companies that are yet to come, they should see investment as a long-term thing. You do no invest today to see the benefit today: you invest today for the benefit to come in the future.

DW Africa: But these companies could feel that they are in a position of advantage, since the region lacks security …

EB: But the government will continue in its commitment to enforce the laws and its programmes. So the situation in Cabo Delgado should not weaken the government – quite the contrary. And I hope companies understand that.

Source: DW