Mozambique:: Armed attacks are deterring investors – Central Bank Governor

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Mozambique:: Armed attacks are deterring investors – Central Bank Governor

2:36 CAT | 18 Sep 2020

Photo: Conselho Municipal Chimoio

Attacks in the centre and north of Mozambique which threaten peace and security are already beginning to affect the country’s economic situation and, if they continue, will frighten investors and as a consequence, according to Rogério Zandamela, governor of the Bank of Mozambique, may shrink the economy.

“We have not yet quantified the full weight of the attacks on the Mozambican economy,” said Zandamela, noting that the central bank, for the time being, sees the attacks as risk factors in its strategy aimed at the stability and growth of the economy.

“Of course, they are worrying elements. They [the attacks] bring uncertainty, and where there is uncertainty, a certain type of investment is difficult. [Investments] become more expensive, investors are scared away. Under normal conditions, we would have greater and better investment. However, we continue to work in collaboration with the Defence and Security Forces, to ensure that all projects that are scheduled happen within their scheduled deadlines,” the Bank of Mozambique president said.

Special attention, Zandamela said, should be paid to projects in Cabo Delgado related to the exploration of mineral resources so that there are no delays in these projects, and the efforts of the Defence and Security Forces must be support in order that such projects take place in an environment of peace and tranquillity.

Trust in political leadership

The head of the central bank says he is confident that, in addition to the efforts of the Defence and Security Forces working in operational theatres to stop the attacks, the same exercise is being undertaken by the country’s highest political leaders.

“There are also political efforts, although not so visible, to ensure that things happen as normal,” he said.

NUIB may help combat terrorism

Rogério Zandamela said that the Single Bank Identification Number (NUIB) being introduced by the Bank of Mozambique would help control terrorists’ sources of financing.

Zandamela said there had been noticeable disruption in the use of banking services, with some people using different identities to access services, complicating control.

“People use different identities. A person goes to a bank, presents an identity, asks for money, is interviewed, receives the services and is approved, then goes to another [bank] with another identity and the banking services do not know who they are dealing with,” Zandamela explained. “This is also an effort to fight money laundering,” he added.

“The world has a very limited tolerance for countries that are relaxed in the area of money laundering and the financing of terrorism. This is important to know, namely because part of the military aspects of the central and northern areas of the country have a certain element of funding. And, if we do not know who the people who are moving the money are, it is difficult to help the Defence and Security Forces,” the man at helm of the Central Bank concluded.

By Carlitos Cadangue

Rogério Zandamela was speaking in Chimoio on Thursday, where he signed a Memorandum of Understanding between the Bank of Mozambique and the Municipality to build a ‘Metical Square’ there, as part of the Central Bank’s social projects, the Municipality reports..

The report as per the Chimoio Municipal Council Facebook page below:

Source: O País