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 Instead, they have become monuments to government mismanagement and
heavy lending by Western banks that has buried a promising African
economy in a deep debt crisis.
The boats, moored in the harbor of Maputo, were paid for out of an
$850-million loan arranged in 2013 by Credit Suisse and Russia's VTB
to finance "fishing infrastructure". The cash came in the form of a
government-backed bond to state tuna-fishing company Ematum.
Nearly three years later, the fishing project, initially touted as
self-sustaining, is defunct and has contributed to a sovereign
foreign debt mountain equal to 80 percent of GDP that could bankrupt
the southeast African nation's government.
Not only did Ematum fall short of its targets but $500 million of
the "tuna bond" was found to be for maritime security and had to
reallocated to the defense budget.
"Sorry sir, we don't have tuna on the menu," said Raul, a waiter at
a restaurant overlooking the dormant fleet. "The boats never go out.
They are resting."
Even when they did sail, in Ematum's early days, the fleet never
caught the amount of fish that would have been needed over a long
period to pay off the debt.
Ematum's results published last year pointed to the fleet catching
just $450,000 of tuna a year, compared with sales of $18 million
forecast at that stage of its life in a 2013 feasibility study
circulated by the government.
Ematum officials did not respond to requests for comment.
DEFAULT
Mozambique, a former Portuguese colony, emerged from 16 years of
civil war in 1992 to become one of Africa's best-performing
economies, with annual growth averaging around 8 percent between
1996 and 2008.
Foreign investment flowed into infrastructure, mining and services,
while a huge offshore gas find -- enough to supply Germany, Britain,
France and Italy for nearly two decades -- offered the chance to
create a middle-income country.
But Mozambique has been hit by the fall in global commodity prices,
and vast gas projects planned by U.S. firm Anadarko and Italy's Eni
have stalled.
Growth is still robust but the metical currency lost a third of its
value in 2015 and another concern for investors is fighting between
government forces and guerrillas in some parts of Mozambique.
The fate of the "tuna bond" is emblematic of the difficulties facing
the country of 26 million, and particularly of the debt problem.
The overall loan was restructured last month in what ratings agency
Standard & Poor's described as "selective default" after the
government struggled to make repayments.
Deepening the mire, a further $1.35 billion of debt then emerged.
Most of it was also from Credit Suisse and VTB, according to an
International Monetary Fund source.
This provoked a furious response from multilateral lenders and
donors who suspended aid because of concerns their cash will be
diverted to pay off private creditors.
Anti-debt activists are demanding the banks take a hit in any future
restructuring for what they described as uncritical lending after
the 2008-09 global financial crisis, when interest rates in the
developed world were ultra-low and banks sitting on billions of
dollars were looking elsewhere for high yields.
"Both lenders and borrowers are responsible for ensuring loans are
given and used responsibly," said Tim Jones, a policy officer at the
British-based Jubilee Debt Campaign.
"Credit Suisse and VTB should pay the price for these illegitimate
loans, and should not be bailed out indirectly by the IMF or anyone
else."
Credit Suisse, whose Ivorian chief executive was quoted by the Wall
Street Journal as saying in October that it was "madness" for poor
countries to finance infrastructure through dollar borrowing,
declined to comment.
BREACH OF TRUST
Without the support of the International Monetary Fund and foreign
donors, whose aid accounts for a third of government revenues,
Mozambique is likely to struggle to pay for basic services.
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The metical is likely to continue its decline, inflation -- already
running at an annual rate of more than 13 percent -- will soar, and
foreign and public investment will drop, with a knock-on impact on
economic growth, analysts say.
"The debt that we just found out about is a huge burden on the
economy. What's worse is it has a multiplying effect, multiplying
problems," said economist Ragendra de Souza, criticizing the
habitual secrecy of the dominant Frelimo party.
"To hide debt is an 'ostrich policy' -- hide the head but everything
else is exposed. A monopoly behaves like this."
A comprehensive aid package is the most likely way out but the IMF
and donors would demand stringent conditions, including full
transparency on state finances, measures to ensure no repeat of the
mistakes and consequences for those responsible, two Western
diplomats said.
The last demand will be particularly tough for President Filipe
Nyusi, who was defense minister under former President Armando
Guebuza when the loans were agreed.
A Frelimo spokesman did not respond to requests for comment.
"This was a fundamental breach of trust. There's no way it's back to
business as usual," one diplomat said. "We are supposed to be doing
anti-poverty work, not paying for undisclosed loans taken out with
no transparency to unsustainable businesses."
Prices of basics such as bread and fuel are rising along with public
anger at the scale of the problem. Armed soldiers and police took to
the streets of Maputo last week after rumors of demonstrations.
"We see the government lied to us and things will get harder for
ordinary Mozambicans now," 37-year-old singer Tinoka Zimba said. "We
used to think that we are all in together, trying to make things
better. This crisis is really sad."
MISSED OPPORTUNITY
Although experts believe gas revenues could begin flowing in eight
years, that is too late to repay over $2 billion in loans due in
2021 and 2023.
Anadarko has halved its in-country staff in the last year and
canceled a building planned in Maputo, two oil industry sources
said. Anadarko did not respond to a request for comment.
Investors are also alarmed by rising tensions between Frelimo and
its former civil war enemy Renamo.
Fighting between the two sides in remote central regions has pushed
more than 11,000 refugees into neighboring Malawi since December.
Renamo says attacks are occurring every day but Frelimo says the
violence is not as serious.
Local media reported last week that a mass grave containing 120
bodies was found in the central province of Sofala. Frelimo denied
the reports.
The violence also risks warding off tourists from Mozambique's miles
of untouched white-sand Indian Ocean beaches.
"The saddest thing is this country has everything needed to be a
huge success story," a diplomat said.
(Additional reporting by Grant Neuenburg, Ed Cropley and Manuel
Mucari, Editing by Ed Cropley and Timothy Heritage)
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