Mozambique: More than 29,700 jobs created in Cabo Delgado last year
File photo / Christine Lagarde, IMF's managing director
Former finance minister Magid Osman blamed the International Monetary Fund (IMF) for the fact that Mozambique does not have policies that promote domestic production. The main reason is that the Metical has always been overvalued, which encourages imports and makes it hard for exports to be competitive. The IMF always says this is the case, but Osman says it “acted in collusion with the central bank” to keep the Metical overvalued.
But the blame for weak domestic production also lies with Mozambique. It has always said that agriculture is the basis of development but when resources are distributed, agricultural is not prioritised, Osman said. Mozambique has too few extension workers and there are no seed production centres in the country, so agricultural promotion work is very limited. Osman spoke last week in Maputo at a conference at the Polytechnic University. (O Pais Economico 8 July).
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