Higher Education Reform: Mozambique President Daniel Chapo says the country will reshape higher education to produce solutions for industrialisation, innovation and economic transformation, urging universities to strengthen applied research and frontier fields like AI and data science. Cabo Delgado Security Funding: Chapo says the EU will contribute to funding Rwandan troops supporting the fight against Islamist terrorism in Cabo Delgado, while Mozambique also mobilises resources for reconstruction and keeps talks on the table. Cabo Delgado Displacement: UNHCR records 609,000 internally displaced people as of May 2025 due to violence in northern Mozambique, with returns rising but protection and services still strained. Business and Tax Pressure: Mozambique’s CTA complains of fragmented state fees and calls for a central coordination mechanism, tax process simplification and clearer rules to reduce penalties and improve predictability for companies. Fiscal Deficit Focus: Finance Minister Carla Louveira reaffirms reforms to consolidate public accounts and reduce the fiscal deficit through modernised administration, better financial management and a broader tax base. Regional Energy Outlook: A new analysis highlights an emerging LNG corridor linking northern Mozambique to South Africa’s terminals as a potential driver of regional industrial growth. El Nino Risk: FAO and WFP warn of over $200m needed to protect 8.8m people in high-risk countries, including Mozambique, from the return of El Nino impacts. Xenophobia Fallout in the Region: Nigeria warns South Africa after reports of killings of Nigerian citizens during anti-migrant violence, as evacuation flights continue and diplomatic pressure escalates.