World Bank chief applauds recovery of Mozambican economy

20 July 2006

Maputo, Mozambique, 20 July – World Bank President Paul Wolfowitz has praised the performance of Mozambique’s economy, describing it as an example of the “opportunities” that exist in the African continent.

Speaking Tuesday at the Leon H Sullivan business summit in Abuja, Nigeria, the World Bank chief said Mozambique is a country that has been afflicted by starvation and civil war that has managed to revitalize its economy to become a model for other African states.

The Leon H Sullivan meeting brings together world business leaders, particularly African and Afro-American, with the aim of promoting Africa as a place of opportunities.

Wolfowitz said he was “impressed” with the 4 percent annual economic growth rate achieved by a group of 15 African states, including Mozambique.

Earlier this month, the World Bank announced it was pardoning Mozambique’s foreign debts of just over US$ 1 billion as part of the Multilateral Debt Relief Initiative (MDRI).

This decision raises the amount of Mozambique’s debt to be written off to around euros 2.03 billion under the MDRI scheme.

The inclusion of Mozambique in the group of countries to benefit from the World Bank’s debt relief scheme is due to Maputo’s “satisfactory macroeconomic performance, progress in implementing the poverty reduction strategy and the existence of mechanisms for management of state spending that observe minimum transparency standards,” said the world financial body. (macauhub)