Mozambique President-Elect Wants to Restore Investor Confidence After Unrest

In Politics
December 24, 2024
Mozambique President-Elect Wants to Restore Investor Confidence After Unrest


(Bloomberg) — Daniel Chapo, Mozambique’s incoming president, plans national-reconciliation talks to resolve an escalating political crisis that has resulted in the deaths of dozens of people and stalled growth in the gas-rich nation. 

The Constitutional Council on Monday proclaimed Chapo the winner of the Oct. 9 election with 65% of the vote, triggering renewed unrest in parts of the southeast African nation. The 47-year-old lawyer and former provincial governor expects to be inaugurated on Jan. 15.

“I am launching a national-reconciliation and dialogue initiative,” Chapo said in an interview hours after the top electoral court confirmed his landslide win. “That will bring together political leaders, civil society and communities to address grievances, foster understanding and build trust.”

The intensifying turmoil has curtailed mining operations and threatens to further delay a $20 billion natural gas export plan that TotalEnergies SE is leading. It has disrupted flights, with tourists deterred by rioting that’s now spread to the port cities of Beira and Nacala.

“There is significant ongoing unrest across Mozambique following the October elections and the confirmation of the results,” the UK government said in an advisory to travelers.

Standard Bank Group Ltd.’s local unit expects an economic contraction this quarter and next, which would add pressure to already-strained state finances.

Local broadcasters showed mobs attacking at least three bank branches near the capital, Maputo, and torching the ruling party’s office in a town north of the city.

Neighboring South Africa called on all parties in Mozambique to commit to an “urgent dialogue” and stands ready to facilitate talks, the government in Pretoria said in a statement.

Protesters overnight set fire to the offices of the governing Mozambique Liberation Front, known as Frelimo, in the town of Macia, about 110 kilometers (68 miles) north of Maputo. 

Demonstrators blocked various roads with burning tires, while footage shared on social media showed buildings — including government institutions and a bank branch — in flames.

Local observer group Decide Platform said 16 had died since Monday evening. It earlier counted at least 130 fatalities since the protests began in late October, with most caused by police firing on the crowds.

The most obvious route to restoring peace would be negotiating a truce with the fiery opposition presidential candidate, who has orchestrated the protests via live stream since fleeing the country of almost 35 million on Oct. 21. 

Venâncio Mondlane, who the top electoral court said got 24% of the vote, called the elections fraudulent and on Tuesday said the demonstrations wouldn’t stop. He is open to international mediation, he said in his latest update.

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Chapo is not yet in power and will only initiate talks with other political leaders including Mondlane after the inauguration, the president-elect said. He hasn’t considered including the opposition in a unity government and would have to consult his party first, he added. Frelimo has been in power since independence 49 years ago. 

Mondlane said in a previous interview he would consider forming a national unity government, but wouldn’t accept any position himself under Frelimo’s rule.

Local and international election observers raised concerns over vote rigging, including signs of ballot-box stuffing. While the Constitutional Council acknowledged irregularities, it said they woould not have changed the outcome. 

The US State Department called the process “flawed.”

“We don’t have any elections without irregularities in the world,” Chapo said when asked if the outcome called into question his legitimacy to govern. Frelimo denied it rigged the vote.

Besides the unrest, Chapo will take over a government struggling to pay its bills.

He plans on restoring peace as a priority to getting the economy back on track. He also committed to policy and legal stability for companies operating large projects in the country, including natural gas, telling investors: “Don’t worry about it.”

“Mozambique remains a land of immense opportunity,” said Chapo. “It is very important to maintain the contract situation with these companies, our law.”

More From Chapo Interview:

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–With assistance from Borges Nhamire and Ntando Thukwana.

(Updates with more from Chapo interview at end of story.)

More stories like this are available on bloomberg.com

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