Public investment in Mozambique triples in five years

4 July 2011

Maputo, Mozambique, 4 July – Public investment in Mozambique has risen from 19 billion meticals in 2006 to 57.1 billion meticals in 2010, focusing on education and health, infrastructure and mining resources, said finance minister Manuel Chang.

Cited by Mozambican daily newspaper Notícias, Chang said that in terms of Gross Domestic Product (GDP) public investment had risen from 10.5 percent in 2006 to 13.5 percent in 2010.

In 2010 GDP grew, in real terms, by 6.5 percent, a rise of 0.1 percentage points against 2009, a performance that was driven by the agri-livestock, manufacturing industry, and retail, repair, transport and communications services.

Speaking recently at the conference to commemorate the 15th anniversary of Banco Comercial e de Investimento (BCI), Chang said that the government is aware of the need to complement public investment with public-private partnerships and business concessions.

According to the minister, these partnerships will make it possible to invest in public areas for the development of infrastructure and mechanisms to boost private businesses to generate employment and income, in a more competitive way.

The need for the private and public sector to complement each other led the country’s parliament to approve the Law on Public-Private partnerships in order to set up a more wide-ranging legal framework on the private sector’s involvement in the public arena. (macauhub)