IMF mission expected to visit Mozambique this month

13 November 2017

A team from the International Monetary Fund (IMF) is expected, this month, to visit Mozambique, said the Minister for the Economy and Finance, during the second investment summit promoted by UK newspaper the Financial Times in partnership with the Standard Bank.

Adriano Maleiane said that, notwithstanding the suspension of financial support programmes following the disclosure of loans taken on by public enterprises in the country, Mozambique remains a member of the IMF and “relations with the organisation are still perfect.”

The Minister acknowledged that Mozambique still need urgent financial aid from the IMF and other partners in order to consolidate reforms, which are now underway.

He noted, for example, that for the reform of the State payroll the government needs US$300 million in order to adapt the pension fund to new sustainable standards, according to daily newspaper Noticias.

Adding other funds that are needed, particularly to restructure public enterprises and boost the private sector, the required value may amount to US$1 billion.

The IMF resident representative in Mozambique, Ari Aisen, recognised the progress made by Mozambique after the suspension of aid, but reiterated that it can only be resumed after meeting the requirements presented by the IMF board about where part of the sovereign-guaranteed funding was applied.

Prime Minister Carlos Agostinho do Rosário said to proceed at the opening of the conference that the government expects a growth rate of 4.7% this year and 5.3% in 2018, bolstered by the performance of the agriculture, retail, extractive industry and transport and communications sectors.

The rate of inflation, in turn, should continue on the current downward trajectory, reaching 11.9% in 2018, which will allow interest rates in the banking system to be reduced.  (macauhub)