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The battle for Nacala

The choice of a new port operator will test whether the government intends to confront the interests profiting from Mozambique’s northern gateway

Today's front pages in Maputo. Photo © Faizal Chauque / Zitamar News

Good afternoon. The government expects to select a private operator for the Port of Nacala by March next year. The international tender is presented as a way to attract investment, improve efficiency and increase cargo traffic. But the central problem at Nacala is not simply who operates the cranes. It is who controls the commercial and political system surrounding the port.

Nacala should be one of Mozambique’s greatest economic advantages. Its deep natural harbour serves northern Mozambique and provides access to the sea for neighbouring countries. A strong international operator could bring equipment, customers and better management, while state-owned CFM retains a strategic stake.

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Yet the port’s development has been constrained by more than infrastructure. Allegations arising from the long-running pigeon-pea dispute involving ETG and Royal Group describe customs decisions, prosecutorial interventions and court orders that allowed agricultural commodities worth approximately $150m to be transferred and exported. The dispute is now before an arbitration tribunal in Mauritius, where ETG is pursuing Mozambique over alleged denial of justice.

Those allegations have not yet been finally determined. But they describe a system in which commercial advantage could depend upon decisions made across customs, the prosecution service and the courts. Replacing the port operator would not by itself change any of those institutions.

The Terminal Especial de Exportação de Nacala, or TEEN, adds another layer. Its operator describes it as a public-private partnership with Customs providing a single location for packing, inspection and clearance. Traders have instead complained that it functions as a compulsory toll gate outside the port, adding charges to containers without improving their passage through Nacala.

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