Mozambique asks for external support to combat the impact of Covid-19

24 March 2020

The government of Mozambique has asked for US$700 million from cooperation partners to help combat the negative impacts of the Covid-19 pandemic, said on Thursday in Maputo the Minister of Economy and Finance, Adriano Maleiane.

The minister said the economic growth forecast for this year has been revised downwards to 2.2%, roughly half of the initial forecast for Gross Domestic Product growth, which pointed growth of around 4.0%.

Maleiane also noted that the Health budget had also been revised upwards from US$30 million dollars to US$50 million this year.

“Due to the new developments, the government has had to revise the budgetary allocation that was planned for this year. Public health has become a priority,” said Armindo Tiago, Minister of Health, on leaving a meeting with external partners.

The resident representative of the International Monetary Fund in Maputo, Ari Aisen, said that the amount requested may come from the overall package of US$50 billion approved by the IMF for the countries affected by Covid-19.

The amount earmarked for Mozambique will depend on the country’s share in the International Monetary Fund, Aisen said. (macauhub)