Maputo, Mozambique, 1 July – Mozambique has managed to achieve the highest rates of economic growth for a non oil producing African over the last decade and a half, according o a report from the National Commission of the African Peer Review Mechanism (APRM).
The report, which is to be presented by the President of the Republic, Armando Guebuza, at the meeting of the African Union to be held in the city of Sirte, Libya, says that during that period Mozambique’s economic growth was an average of 8 percent between 2000 and 2006, but fell slightly to 7.3 percent in 2007.
Mozambique’s per capita gross domestic product (GDP) rose at an average of 5.9 percent between 1996 and 2006.
The document drawn up, according to Mozambican newspaper Notícias, by a group of Mozambican officials (including academics, researchers, politicians, members of religious orders and representatives of civil society organisation) also says that solid macroeconomic management has contributed to good economic growth in Mozambique.
After recognising that the Government has also made considerable efforts to ratify and adapt the international rules and codes to Mozambique’s current situation, the National Commission of the APRM said, however, that, a significant deficiency in Mozambique’s economic management was due to the facet that economic growth had largely been achieved due to foreign investment in “mega projects” and an influx of international aid.
With foreign funds totalling over 50 percent of public expenditure, Mozambique is one of the countries in Africa that is most dependent on aid.
Two large projects have particularly dominated Mozambique’s economic data since the 1990s until the beginning of the new century: The Mozal aluminium foundry and Sasol’s gas pipeline, the report said.
Also according to the report, “although these projects seem impressive, their net benefits for the rest of the economy are minimal and there is practically no transferral effect of benefits or significant job creation in sector industries and even tax revenues do not rise because the mega projects benefit from generous tax breaks.” (macauhub)