Mozambican reshuffle will not ease donors' concerns
Subject Mozambican cabinet reshuffle. Significance President Filipe Nyusi dismissed four ministers on December 12-13, subsequently reappointing two with different portfolios the next day. The reshuffle was expected following leadership changes at the ruling FRELIMO party congress in September/October. It brought in new ministers for the crucial energy and minerals and agriculture portfolios. The government is now focused on pushing through key investment decisions in the liquefied natural gas (LNG) sector in the resource-rich Cabo Delgado province, where ruling elite struggles over land, gas and access to harbour facilities are intensifying. Impacts High interest rates due to government borrowing are crowding out private-sector funding. LNG developments in Cabo Delgado could be slowed due to factional fighting within FRELIMO. Although budgetary support is frozen, there could be a short-term spike in donor aid to specific public and private sector initiatives.