Mozambique needs to ensure macroeconomic stability, IMF says

30 September 2016

Mozambique needs to adopt measures to reduce expenditure in order to ensure macroeconomic stability, taking into account rising inflation and currency devaluation, said the mission of the International Monetary Fund (IMF) that travelled to Maputo.

The mission was in the Mozambican capital from 22 to 29 September to start talks on the terms of reference of an international independent audit of state companies Ematum, Proindicus and Mozambique Asset Management in order to improve transparency and governance to prevent new debt related problems.

In a report released on Thursday in Washington, the head of the mission, Michel Lazare said the trip to Mozambique had also been used to discuss measures to restore the confidence of international partners.

Lazare also said the Mozambican authorities requested that the International Monetary Fund resume negotiations to that start to provide financial support as soon as possible and added that the implementation of sound macroeconomic policies and the beginning of the short-term audit process “would help to create conditions for the possible resumption of negotiations with the IMF.”

In the same statement, the IMF mission said the Mozambican economy is currently declining and economic growth should not exceed 3.7%, against 6.6% in 2015, “a rate that is substantially lower than registered in recent years.” (macauhub)