Mozambique: World crisis impacts Mozambique

4 June 2009

Maputo, Mozambique, 4 June – The global financial crisis has already had some negative impact on some sectors of the Mozambican economy although there are no signs of breakdown, Prime Minister Luísa Diogo said in Maputo.

Speaking to the Republican Assembly, the country’s parliament, the Prime Minister noted that the crisis would increase levels of foreign debt by 535 million meticals (US$20 million), due to the depreciation of the country’s currency and transfer of financial resources to embassies and other state purchases of imported goods and services.

Another impact that the country will face is the loss of around 4.7 billion meticals in tax revenues, Diogo said, adding that other signs were visible in exports, cash transfers abroad, investment revenues in the private sector and volume of foreign aid, although in this area, the Government was working together with its international partners, she said.

In this are the government’s activities appear to have been successful as on 28 May the 19 countries and institutions that provide direct budgetary aid to Mozambique pledged US$471.8 million for 2010, a rise of 6 percent against the US$445.2 million pledged for this year.

The funds promised by the group of 19 for 2010 totals US$804.5 million when aid for sector programmes is added to the total. (macauhub)