Date: 11 December 2007 MCLI takes pleasure in forwarding to you ...

The South African group Shoprite last Wednesday inaugurated its fifth supermarket inMozambique, in the southern city of Matola.The Matola supermarket represents an investment of eight million US dollars, and thechairperson of the Shoprite board, White Besson, expects a return on this investment ineight years.The Shoprite Matola operation will employ 129 people, and will also give an opportunityto 130 local farmers to sell their produce. (aim)10,000 km cable to improve broadband accessThe construction of a 10,000 kilometer undersea fiber-optic cable is to bring hugeimprovements to Mozambique's Internet and telecommunications access.For the construction of the connection a 70 million US dollar loan has been agreed by theInternational Finance Corporation (IFC), the African Development Bank (AfDB), theEuropean Investment Bank (EIB), Germany's development bank (KfW), and thedevelopment bank of France (AFD). Construction of the East African Submarine CableSystem will begin in December, and once fully operational will link 21 African countriesto Europe. The cable could transform telecommunications for 250 million Africans andsubstantially reduces costs for consumers and businesses. It is planned to complete theproject in time for the 2010 football World Cup in South Africa. (the Investor,www.clubofmozambique.com)Bureaucracy continues to hinder business in the countryBureaucracy continues to hinder the business climate in Mozambique and a minimum of10 documents are needed to export goods, the chairman of the Confederation ofEconomic Associations (CTA), Salimo Abdula said Wednesday in Maputo.Abdula pointed to bureaucracy as one of the main obstacles to corporate activities inMozambique, whilst speaking at the 10th Private Sector Conference.The chairman of the CTA compared the cost of doing business in Mozambique with thatof South Africa, concluding that in South Africa it was cheaper.“Exporting via the port of Durban (South Africa) costs US$1,085, whilst exporting viathe port of Maputo costs US$1,115,” Abdula noted. (macauhub)DONORSGermany invests in Mozambican schoolsThe Mozambican government, through the central bank, the Bank of Mozambique,signed on Monday a contract with the German government, through the DevelopmentBank (KFW) in terms of which the later is to grant five million Euros (about sevenmillion US dollars) for the building of new schools and purchase of the necessaryfurniture in southern Inhambane, and central Manica and Tete provinces in 2008.Education and Culture director of Construction Carlos Chissano told reporters of thedaily 'Noticias' that the money will be used to build 180 classrooms and houses for theteachers. By the end of this year, this institution is hoping to have built more than 1,400classrooms and a number of other infrastructures. (aim)Portugal supports Mozambican Interior MinistryThe Portuguese authorities announced last Wednesday a grant of 1.4 million Euros (abouttwo million US dollars) to Mozambique, for training and equipping the police,the fire brigade and the immigration authorities.Portuguese Ministry of State Administration, Paulo Caldas, said that his country isprepared to receive Mozambican staff from the three sectors to be trained as trainers.