To overcome lack of IMF support: Marrengula backs economic restructuring in Mozambique
Voa / A Map of Mozambique
President Nyusi said on Friday that cuts in international support to the country were affecting the government’s five-year plan and economic growth, requiring greater rationalisation of resources.
Mozambique was “experiencing a time when its investments are subject to international monetary rules, which has been limiting initiatives to realise many of the projects in the pipeline in our government’s Five Year Plan,” Filipe Nyusi said in Maputo at a state luncheon in honour of his South African counterpart, Jacob Zuma.
The Mozambican leader stated that the suspension of financial support to the State Budget by the country’s main donors was limiting the functioning of the country’s economy.
“Our cooperation partners in programmatic support have suspended the channelling of resources to the State Budget,” President Nyusi said, and “these adversities have been serving as an opportunity to learn how to better rationalise the scarce resources available”.
The Mozambican president also recalled that the country had been plagued by military violence, high inflation, currency devaluation and a decline in the price of export raw materials.
At the political level, the Mozambican head of state stressed that an indefinite truce in the confrontations between the Mozambican Defence Forces and Security Forces (FDS) and the armed wing of the Mozambican National Resistance (Renamo), the main opposition party, was holding.
“Our efforts at political dialogue have enabled the cessation of localised military hostilities and we believe that in this way we are building confidence and taking safe steps towards achieving an effective and lasting peace in Mozambique,” Nyusi added.
The main donor countries and entities to the Mozambican State Budget and other international financial institutions suspended their support following the discovery in April 2016 of undisclosed debts, contracted with the state guarantees, between 2013 and 2014.
Donors have subjected the resumption of aid to an international audit. A summary of the audit report was released in June, but donors have demanded that information missing in the document should be provided.Source: Lusa