US embassy cable - 04MAPUTO220

UNCLAS MAPUTO 000220 
 
SIPDIS 
SENSITIVE 
E.O. 12958: N/A 
TAGS: PGOV, KDEM, PINR, MZ 
SUBJECT: PRESIDENT CHISSANO APPOINTS NEW MOZAMBICAN PRIME 
MINISTER 
 
 
1. (U) On Tuesday, February 17, President Chissano formally 
announced the appointment of Luisa Diogo, the current 
Minister of Planning and Finance, as Prime Minister. The 
announcement of a new PM was expected, as former PM Pascoal 
Mocumbi had already announced his intention to leave his GRM 
post early (before the October 2004 national elections) to 
serve as High Commissioner of a new European Commission 
health body, the Europe-Developing Countries Clinical Trial 
Partnership (EDCTP). Mocumbi was relieved of his PM duties 
and Diogo installed on the same day. Diogo also retains her 
position as Minister of Planning and Finance. 
 
2. (SBU) The choice of Diogo to serve as PM does not come as 
a complete surprise -- Diogo and Minister of Transport and 
Communications Tomas Salomao had been widely seen as the two 
most likely candidates to replace Mocumbi. She is the first 
woman in Mozambique to be appointed PM and is from the 
western province of Tete, as opposed to the other major GRM 
leaders that hail from the FRELIMO-heavy south. Diogo is a 
sharp leader and a tough manager in her position as Minister 
of Planning and Finance. She is currently one of three female 
ministers serving in the GRM. Unlike the two previous PMs, 
Diogo is not a member of the FRELIMO Political Commission, 
the most powerful FRELIMO body; however, she is a member of 
the larger FRELIMO Central Committee. She has sought out and 
established critical international relationships with donors 
and lending organizations. Her astute knowledge of the Paris 
Club process has been key to her prominent position in the 
GRM, given Mozambique's dependence on external budget 
support. Diogo studied economics at Maputo's most prestigious 
university, Eduardo Mondlane, and went on to receive a 
Masters degree in Economics from the University of London in 
1992. She began working in the Ministry of Planning and 
Finance in 1980, making her way up to Department Head, 
National Budget Director, and Deputy Minister. Diogo was 
promoted to Minister by President Chissano after the 1999 
national elections. In the early 90's, Diogo spent two years 
working for the World Bank as a Program Officer in 
Mozambique. Diogo is the founding force behind the GRM's 
Poverty Reduction Strategy (PARPA), approved by the Council 
of Ministers in April 2001. This strategy, which emphasizes 
economic growth through investment in human capital and 
productive infrastructure and institutional reform to improve 
the private sector investment climate, is a high priority for 
the GRM and will continue to be through 2005. President 
Chissano has communicated that Diogo will retain her position 
as Minister of Planning and Finance and fulfill new PM duties 
simultaneously. 
 
3. (U) Radio de Mocambique reported the following additional 
candidates were also considered for PM: Minister of 
Transportation Tomas Salomao (short-listed with Diogo), 
FRELIMO Parliamentary bench leader Manuel Tome, former 
Minister of State Administration Oscar Monteiro, and Governor 
of Cabo Delgado Province Jose Pacheco. 
 
4. (SBU) COMMENT: The appointment of Diogo to PM arguably 
makes her the most powerful woman in Mozambique. She is 
nationally and internationally respected in her position as 
Minister of Planning and Finance and has close ties with the 
donor community. Diogo's appointment serves various purposes 
and is timely for the FRELIMO-ruling GRM. With the country's 
third national elections set for late 2004, Chissano played 
his card at installing the country's first female PM in 
history and choosing a candidate from the country's central 
region. FRELIMO is hoping to make a statement with this 
appointment; the FRELIMO party is responsive to women around 
the country and to all regions, the south, central, and 
north. Post believes that Diogo will not do much to change 
the tide of Mozambique's political, economic, or social 
fabric in the ten months in which she serves as PM. Chissano 
is stepping down in the 2004 elections, and the new 
Mozambican president, whether he be FRELIMO or RENAMO, is 
expected to revamp the cabinet and appoint new ministers. 
Diogo may or may not be chosen to take part in the new GRM. 
END COMMENT. 
LA LIME