OECD expects economic growth in Mozambique to continue

17 November 2006

Maputo, Mozambique, 17 Nov – The Mozambican economy will grow 7.9 and 7.3 percent in 2006 and 2007, respectively, maintaining levels achieved over the last few years, according to a report from the Organization for Economic Cooperation and Development (OECD), published Thursday in Maputo.

“The prospects for 2006 and 2007 are favourable, and growth is expected to reach 7.9 and 7.3 percent, respectively, based on a wave of mega titanium mining projects and strong growth in construction and agriculture,” the document said.

The report, which was drawn up by the OECD and co-financed by the European Union (EU), entitled, “Economic Prospects for Africa 2005/2006,” is a comparative analysis of 31 African countries, including Mozambique and Angola.

The “notable economic development,” of the country led to, “a palpable reduction in the population living in absolute poverty,” said the head of the EU delegation in Maputo, during the presentation of the report at the Portuguese embassy.

Sylvie Millot said that the EU had earmarked a 550 million-euro loan for the 2006-2007 period, focused on supporting the state budget, the infrastructure and agricultural sectors, while in the next two-year period cooperation would focus on infrastructure.

According to the report, in budgetary terms, the Mozambican government must “mobilize tax revenue to reduce dependency on foreign aid, which finances 50 percent of the State Budget.” (macauhub)