Mozambique’s economy “strong” and has good prospects for 2006 – IMF

10 February 2006

Washington, USA, 10 Feb – Mozambique’s economy is “strong” and has good prospects for 2006, according to the International Monetary Fund (IMF) in its latest report on the country, in which it encourages the Mozambican government to move ahead with reform and lower import tariffs.

The report, which recommends that the board of the IMF approve a revisal of the support program for Mozambique, the IMF says that Mozambique’s prospects in the medium-term, “critically depend on prudent macroeconomic policies and a second wave of reforms.”

Among the reforms are the creation of Central tax Authority and strengthening of the system for supervision and management of ministerial expenditure, through a public finance information management system (e-SISTAFE).

The program of reform also includes increased efficiency of the financial system, supported by the World Bank, and measures to reduce corporate costs and strengthen public management.

The IMF report says it supports the Government’s aim of reducing import tariffs from 25 percent to 20 percent for all the country’s trade partners, but “regrets the delay in finalizing the legislation,” appealing to the authorities to submit it for parliamentary approval at the beginning of this year.

The IMF report concludes that, “the performance of the Mozambique program has improved and that all quantitive and structural criteria had been fulfilled by the end of September 2005.” (macauhub)