Mozambique needs to grow by boosting sectors with intensive workforce requirements

7 March 2011

Maputo, Mozambique, 7 March – Mozambique should adopt a strategy of economic growth based on stimulating production and productivity in sectors that make intensive use of labour, including agriculture, the Representative of the International Monetary Fund (IMF) in Mozambique said in Maputo.

Cited by Mozambican daily newspaper, Notícias, Victor Lledó said that the good performance the country had posted over the last two decades notwithstanding, growth had brought fewer benefits to the poor, as compared to what happens in more successful countries.

In fact, in Mozambique’s case, said the IMF representative, the reduction of economic benefits to the poor had deteriorated further over time.

Lledó, who was speaking Wednesday in Maputo at a seminar entitled, “Challenges and Strategies for Inclusive Growth in Mozambique,” noted that the country could reduce poverty if it speeded up public investment in infrastructure.

Commenting on the positioning of the resident representative of the IMF, economist Roberto Tibana referred to figures published recently by the National Statistics Institute (INE), according o which in 2007 distribution of national income was shared by 26.7 percent to the salary factor and 62.7 percent to the capital factor.

“However, in 2008, remuneration of employees fell to 23.2 percent of GDP, whilst the slice that went to owners of the capital rose to 66.5 percent. This is what is happening in a period in which actually the Mozambican economy grew,” the economist said. (macauhub)