The situation of insecurity in Cabo Delgado province, due to terrorist attacks, poses a great risk of transferring the logistics base in Pemba to other locations.
The first phase of the construction work of this infrastructure to support the gas and oil industry in the region has already been completed. The Pemba logistical base is fundamental for the operations that will be developed by the companies involved in the gas projects in the Rovuma basin.
This phase consisted of the construction of a quay with a length of about three hundred metres, production facilities and assembly of subsea equipment, among other infrastructures. The Confederation of Economic Associations of Mozambique (CTA), which raised the alert a few days ago, added that due to insecurity some commercial banks have already shown no interest in supporting national companies for projects in the north, a situation that only favours foreign companies.
In a press conference held recently, CTA vice-president Prakash Prehlad said that so far the action of terrorists has negatively impacted the activity of companies, particularly nationals hired or subcontracted to operate there.
This situation, according to Prakash Prehlad, has taken on a dimension that prevents the launch of any development project in the northern part of Cabo Delgado province.
Several companies have been facing difficulties in receiving payments since December, due to lack of clarity on the part of CCSV regarding the goods received.
According to the source, with the general paralysis and demobilisation of workers in the area, it is not known how the companies will proceed regarding the investments made in goods and commodities to supply to the projects.
“Local companies are at great risk of losing credibility with international suppliers as well as with the banks,” Prakash Prehlad warned.
The sector believes that in this real emergency situation that endangers not only the lives of many people, but also the future of Mozambique, the CTA can be the promoter of a coordination protocol between security companies operating in Cabo Delgado province and the Defence and Security Forces (FDS).
The protocol in reference is to carry out a serious and joint action to have control of the territorial dynamics and a capacity to prevent the dangers of terrorist actions. Once the security situation in northern Cabo Delgado is re-established, the CTA can also be a spokesperson and promoter of incentives for the national private sector, which, in fact, has been forced to abandon its business and assets in the territory. The re-establishment of a secure environment in Cabo Delgado will have the immediate consequence of minimizing the risk of loss of existing employment and business opportunities.
