Mozambican economy is well, but impact of international crisis is evident

3 December 2009

Maputo, Mozambique, 3 Dec – Mozambique’s economy “is well” but the impact of the international financial crisis “is evident” with delays to development projects, the Mozambican representative of the World Bank said Wednesday in Maputo.

Luís Tavares also said that, due to the world financial crisis, Mozambique “has seen a reduction in production capacity in certain export sectors, as a result of lowered demand for certain products on the international market.”

Speaking at a two-day seminar due to end Thursday in Maputo on “tax policies for economic growth in Africa, in the context of the global crisis,” Tavares said that for the Mozambican case, the current financial crisis had affected the work force in several business sectors.

But, he said, the devastating effects of the world crisis not only affected Mozambique, but also various African nations, “inflicting suffering on people at all levels of society.”

Thus, the World Bank representative called for “urgency in perfecting the tax systems in developing countries as a way of making them into revenue instruments in the face of potential sharp drops in development aid and flows of foreign direct investment.”

As well as Mozambique, South Africa, Botswana, Zambia, Tanzania, Rwanda, Kenya, Mali, Burkina Faso, Ghana, Ethiopia took part in the meeting along with senior World Bank staff. (macauhub)