Timber smuggling from Mozambique’s ancient forests to China, valued at $23 million annually, finances a brutal Islamist insurgency and supports a vast criminal network in northern Mozambique. This illicit rosewood trade, particularly from the threatened species pau preto, is linked to the Islamic State-affiliated militants in Cabo Delgado province. Despite international treaties restricting rosewood trade, a four-year investigation by the Environmental Investigation Agency (EIA) exposed rampant illegal logging, corruption, and poor management of forest concessions.
The insurgents exploit the trade to raise an estimated $1.9 million monthly, even collecting a 10% protection fee from firms for illegal logging. The rosewood, prized in China for luxury furniture, is often transported illegally and in raw log form, violating Mozambique’s 2017 law against unprocessed timber export. The EIA's findings reveal extensive smuggling networks and inadequate enforcement, contributing to ongoing violence and significant deforestation in Mozambique, exacerbating the region's instability and environmental degradation.
Keywords: Sub-Saharan Africa, Mozambique, timber, primary production, illegal logging, smuggling, deforestation, corruption and bribery, organised crime, illegal timber trade
Source: https://www.bbc.co.uk/news/articles/c51nnzzkpkyo
In Mozambique, illegal mining and associated financial crimes are becoming significant issues, with the mining sector increasingly exploited for money laundering and terrorism financing. Criminals involved in the illicit extraction of resources like gold and gemstones use fraudulent invoices, unregulated trade routes, and complex laundering schemes to legitimise their profits. This activity fuels organised crime and supports extremist groups, notably in conflict-prone areas such as Cabo Delgado.
The UN Office on Drugs and Crime (UNODC) is actively working to counter these trends in Mozambique. Efforts include training local law enforcement and financial institutions to identify and combat illicit financial flows linked to mining. The UNODC promotes regional cooperation to bolster regulatory frameworks and improve intelligence sharing. These measures aim to curtail the illegal exploitation of Mozambique's rich mineral resources, disrupt criminal networks, and ensure that the benefits of mining contribute to sustainable development and economic stability.
Keywords: Sub-Saharan Africa, Mozambique, minerals, gold, primary production, trade and transport money laundering, terrorist and conflict financing, fraudulent documentation, organised crime
Source: https://www.unodc.org/rosaf/en/stories/2023/December/tackling-money-laundering-and-the-financing-of-terrorism-related-to-crimes-in-the-mining-sector.html
An article by Al Jazeera reports that ongoing conflict relevant to natural gas reserves in Mozambique’s Cabo Delgado province has had dramatic repercussions on civilians. The discovery of natural gas reserves off Cabo Delgado's coast in 2009 by Texas-based Anadarko was initially believed to have the possibility to create local opportunity and economic prosperity. However, when TotalEnergies and its partners invested $20 billion in developing these resources local communities were, in reality, faced with displacement and the clearing of vast lands for infrastructure. In 2021, the project was suspended due to escalating violence by a local armed group known as al-Shabab. This group’s violent campaign since 2017 has resulted in over 6,000 deaths and the displacement of a million people. To protect the liquified natural gas (LNG) project, Mozambican and international troops were deployed, leading to allegations of abuses against civilians. Displaced residents of Quitunda and other areas have reported raids, arrests, and violence perpetrated by soldiers. Hunger and lack of compensation for lost farmland and homes have left many in desperate conditions. Promises of improved living conditions have largely gone unfulfilled, causing hardship amongst the affected populations.
Keywords: Sub-Saharan Africa, Mozambique, minerals, gas, terrprost and conflict financing, human rights violations
Sources: https://www.aljazeera.com/features/2024/6/16/double-attack-the-curse-of-natural-gas-and-armed-groups-in-mozambique