Mozambican Prime Minister assures of economic stability

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Mozambican Prime Minister assures of economic stability

8:27 CAT | 25 Jan 2019

Mozambican Prime Minister Carlos Agostinho do Rosário (in file CoM)

Mozambican Prime Minister Carlos Agostinho do Rosário is optimistic of continued macroeconomic stability in the country.

Speaking recently during a meeting with journalists in Maputo, he said inflation is at a lower historical level in recent years.

“In December 2018, annual inflation stood at 3.5 per cent, compared to 26 per cent in October 2016. The inflation path we are recording contributes to minimising the cost of living,” Rosário said.

The Prime Minister also said the national currency, metical, remains stable against the US dollar and the South African rand.

A currency stability that combined with the low levels of inflation contributes to a greater predictability of domestic and foreign investments, he said.

“The favourable evolution of inflation has been contributing to the gradual reduction of the interest rate in the banking system, which is contributing to the improvement of the conditions of access to money by the private sector,” Rosário stressed.

He boasted of the country’s comfortable level of international reserves, which currently cover about seven months of import of goods and services.

“…in a context where the results that are being registered in the Agriculture sector, with the engagement of the population, are contributing to the gradual reduction of the cost of living and levels of food insecurity,” Rosário said.

He said in March and July of this year, the final decision on the investment of the Golginho Atum (Area 1- Anadarko) and Mamba (Area 4 – ExxonMobil and ENI) projects, will be taken in the hydrocarbons sector respectively.

“Final decision making will enable the development and streamlining of projects for the extraction, liquefaction and commercialisation of gas in the Rovuma Basin,” Rosário said.

Strengthening the relationship with cooperation partners, including the International Monetary Fund (IMF), was another aspect addressed.

In this context, government says it has been making progress in the dialogue with the Fund with a view to finding the best relationship that contributes to the country’s continuous development.

“These developments, in relation with our cooperation partners and the prospective foreign direct investment in the gas area, demonstrate the reinforcement of confidence in relation to Mozambique,” assured Rosário.

Source: Jornal Notícias