Mozambican economy expected to grow 8.1 pct in 2014 and 8.0 pct in 2015

7 February 2014

Mozambique’s economy is expected to grow at a rate of 8.1 percent this year and 8.0 percent in 2015, but could grow even more if improvements were made to its railway network, the governor of the Bank of Mozambique said in Kenya.

Mozambique has globally important coal reserves, particularly of coking coal, but mining companies, such as Brazil’s Vale and Anglo-Australian mining company Rio Tinto, are facing huge difficulties transporting the coal. Vale is currently involved in building a railway line between Moatize, in Tete province, and the deep water port of Nacala.

On the sidelines of a conference held in Kenya, Ernesto Gove told financial news agency Reuters that the rate of inflation, which in 2013 totalled 4.2 percent, was expected to rise this year, but remain within the 5.6 percent limit set by the central bank.

“All the foundations are in place and I think the private sector will manage to create the climate needed for this inflation forecast to become a reality,” said Gove. (macauhub)