IMF calls for greater transparency in Mozambican public spending

21 August 2007

Maputo, Mozambique, 21 Aug – The director-general of the International Monetary Fund (IMF), Rodrigo Rato, Monday called on Mozambique to impose greater transparency on its public spending, as one of the decisive steps for the country to combat absolute poverty.

Rato suggested the route that the Mozambican government should follow in fighting poverty in the country, speaking to journalists after a meeting with Mozambican president, Armando Guebuza.

Rato is in Maputo to take part in a meeting of the African Consultative Group (ACG) with the IMF, which has been set up for consultation between African Finance ministers and the IMF, held Tuesday in the Mozambican capital.

“Mozambique’s macroeconomic situation is very positive, with growth that has been very strong, but there is still a long way to go,” Rato noted.

As well as greater transparency in public spending, the Mozambican authorities should also encourage private sector participation in the process to combat poverty, Rato said.

In order to do this, the government must create an attractive framework for investment, the director-general said, adding that he was confident about the results of the second phase of the Program to Reduce Absolute Poverty (PARPA), designed by the Mozambican government to deal with the country’s main challenges. (macauhub)