Good afternoon. The future of the concession contract for the N4 highway will be an interesting test of how far the government is prepared to go in rolling back the corrupt privileges of ruling party Frelimo. At present, the entire international highway from Pretoria in South Africa to Maputo is governed by one contract held by Trans Africa Concessions (Trac), a company with South African and Mozambican shareholders, which collects tolls and uses them to maintain and repair the road. It is a vital artery for South African minerals that are exported through the port of Maputo, and thousands of lorries carrying ores use it every day.
The full Daily Briefing continues below for Pro subscribers. Subscribers to the Zitamar News tier can read the top half, including the full leader article, here.
The latest from Zitamar News:
Zitamar News
The 30-year contract is due to expire in 2027, and there are a number of issues to straighten out before it can be renewed, extended or replaced. For one thing, tolls on the Mozambican side of the border have not been increased in line with the contract, which says that they should rise in line with the cost of living. But political pressure has kept them well below the rate they should be at, if the contract were followed. This helps to explain why the Matola toll gate runs at a loss. For another, the government has forced Trac to pay for the repair of the road that connects the N4 to the port of Maputo, although it is not covered by the concession contract. Trac will be looking to improve its position on these two issues in the negotiations.
