Mozambique is reducing its dependence on foreign funds, says governor of central bank

28 March 2007

Maputo, Mozambique, 28 March – The governor of the bank of Mozambique, Ernesto Gove, said Monday in Tete that the country was reducing its dependence on foreign sources of financing for economic and social development projects.

Speaking at the inauguration ceremony of a branch of the central bank in the city of Tete, Gove said that on expanding the institutions and services offered by the financial system, the State was setting up conditions to increase savings by the population, which was an essential condition for generating internal resources.

According to newspaper, Notícias, the governor said that over 49 percent of the country’s financial investment came from outside sources, in the form of loans or donations, which was an economic dependence that brought conditions with it.

Opening a branch of the Bank of Mozambique in Tete is part of the central bank’s strategy to widen financial services to the population on a national scale.

Similar branches have been opened in Quelimane, Maxixe and Pemba, and a branch in Lichinga is expected to be opened this year.

According to Govem, the Bank of Mozambique’s branches will provide more regular and less costly metical bank notes and coins, and thus the central bank can provide a specialized service to retail banks and micro-financing operators, and ensure a better quality settlement service.