Militants occupied a vital port in gas-rich northern Mozambique on Wednesday following days of attacks claimed by an ISIS-affiliated group, a military source and local media said.
It is the third time militants have seized the port, a logistics link for a $23 billion (Dh84bn) natural-gas project being developed by French energy firm Total.
"The port of Mocimboa da Praia was captured by the terrorists at dawn," the Moz24Horas website reported, while a military source told AFP that the small town and its port had "fallen".
The assault is the latest in an intensifying insurgency in the country's north since 2017 that has killed more than 1,000 people and complicated plans to develop offshore gas reserves.
Mozambique's defence forces (FDS) confirmed that "terrorists" had launched "sequenced attacks" on several villages surrounding the port over the past week in an attempt to occupy the town.
"At the moment, there are ongoing actions to neutralise the terrorists that are using populations in the affected areas as shields," the FDS said in a statement.
Mocimboa da Praia lies less than 80 kilometres south of the Afungi peninsula where a liquefied natural gas (LNG) facility, one of Africa's biggest single investment projects, is located.
The port is the closest harbour and a gateway for materials and supplies to the gas project where Total is in the preparation stage having recently finalised an initial $15bn of financing.
“The capture of Mocimboa da Praia, as well as the previous assaults on district capitals since March, shows that the capabilities of ISIS militants has improved,” Tristan Gueret, an analyst at Risk Advisory Group in London, said.
Gas projects in the country’s northern Cabo Delgado province are central to plans to transform the impoverished south-east African nation. Projected revenue from the developments are estimated at more than three times its current gross domestic product.
“Although it is another indication of the fast deterioration in the security environment in Cabo Delgado, the success of the attack in Mocimboa da Praia does not necessarily have major or immediate implications for LNG operations,” Mr Gueret said. The Total project area is “currently secured by a dedicated force, and this means that mounting a successful raid there would be much more challenging for the group,” he said.
The military source said that during Wednesday's assault a rocket-propelled grenade sank a boat owned by former president Armando Guebuza.
"The situation is complicated," the source said.
Under Mr Guebuza, Mozambique secretly borrowed about $2 billion (Dh7.3bn) from Credit Suisse and Russia's VTB Bank to finance maritime surveillance and buy military and tuna fishing vessels from Privinvest in 2013 and 2014.
But the government only disclosed the debt in 2016 – a development that plunged the poor, donor-dependent southern African country into its worst-ever financial crisis.
Attacks in the northern region have already killed at least 1,300 people, according to the Armed Conflict Location & Event Data Project (ACLED).
Displaced people number more than 250,000, according to aid organisations working locally.
In its latest weekly report released on Wednesday, ACLED said "insurgents and government security forces have been in more or less constant running battles in the area" for the past week.
Even with the help of private military contractors flying helicopters armed with machine guns, the Mozambican government has struggled to curb the insurgency, which has grown increasingly brazen in its attacks this year.
Security forces have in the past seven days killed 59 fighters in the region and destroyed six of their camps, the government said. Fighting is continuing in order to “neutralise” the militants, it said.
The attacks started in 2017 in Mocimboa da Praia and have since spread to massive territories of Cabo Delgado province.
The latest attack – the third on the town this year – was claimed by ISIS Central Africa Province.
The ISIS-affiliated group has the stated goal of establishing a so-called “caliphate” in the region.
The ISIS branch has claimed several attacks since June 2019 through social media, often posting images of slain soldiers and seized weapons.
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Other acts on the Jazz Garden bill
Sharrie Williams
The American singer is hugely respected in blues circles due to her passionate vocals and songwriting. Born and raised in Michigan, Williams began recording and touring as a teenage gospel singer. Her career took off with the blues band The Wiseguys. Such was the acclaim of their live shows that they toured throughout Europe and in Africa. As a solo artist, Williams has also collaborated with the likes of the late Dizzy Gillespie, Van Morrison and Mavis Staples.
Lin Rountree
An accomplished smooth jazz artist who blends his chilled approach with R‘n’B. Trained at the Duke Ellington School of the Arts in Washington, DC, Rountree formed his own band in 2004. He has also recorded with the likes of Kem, Dwele and Conya Doss. He comes to Dubai on the back of his new single Pass The Groove, from his forthcoming 2018 album Stronger Still, which may follow his five previous solo albums in cracking the top 10 of the US jazz charts.
Anita Williams
Dubai-based singer Anita Williams will open the night with a set of covers and swing, jazz and blues standards that made her an in-demand singer across the emirate. The Irish singer has been performing in Dubai since 2008 at venues such as MusicHall and Voda Bar. Her Jazz Garden appearance is career highlight as she will use the event to perform the original song Big Blue Eyes, the single from her debut solo album, due for release soon.
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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
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Global state-owned investor ranking by size
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China
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Japan
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Norway
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Canada
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South Korea
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