Mozambique: Government’s 100-day plan is out , foresees Economic Recovery Fund- Carta

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Mozambique: Government’s 100-day plan is out , foresees Economic Recovery Fund- Carta

2:38 CAT | 07 Feb 2025

FILE - For illustration purposes only. [File photo: Presidency]

The actions to be developed by the government in the first 100 days of Daniel Chapo’s government are now known. The document, approved last Tuesday by the Council of Ministers, consists of 77 actions, described as having “an immediate impact on the lives of the population”, and to be initiated by 30 April.

Among the actions planned and programmed by Daniel Chapo’s government is the creation of an Economic Recovery Fund, which will be responsible for the recovery of the economic fabric, devastated by the post-election demonstrations called by former presidential candidate Venâncio Mondlane.

The Confederation of Economic Associations of Mozambique claimed yesterday that 40% of the country’s industrial fabric was destroyed by the protests. The government plan does not specify the amount to be allocated to the Economic Recovery Fund.

In the first 100 days of government, the executive proposes to consolidate the Mutual Guarantee Fund created last year by the government of Filipe Nyusi, with the aim of facilitating access to credit for micro, small and medium enterprises (MSMEs).

The entity, supervised by the Bank of Mozambique, aims to reduce barriers to financing for MSMEs, which often do not have sufficient capacity to obtain loans from commercial banks.

The First 100 Days’ Plan also pledges that, by 30 April, the government will initiate the process of creating the Development Bank of Mozambique, one of Daniel Chapo’s greatest electoral promises. The bank, as explained by Chapo, will develop infrastructure, finance and better promote strategic projects for the progress of the country.

“With the resources generated by the gas assets, we will capitalize this bank and immediately invest in projects that transform the lives of Mozambicans,” the President of the Republic said in his inauguration speech.

Still regarding the structural transformation of the economy, the government proposes to create, by 30 April, an Economic and Social Development Fund. None of the funds announced yet present estimates of the amount to be invested.

The executive also guarantees that by 30 April, it will pay the debts with suppliers of goods and services to the state and the overtime validated by the General Inspectorate of Finances in the health and education sectors.

Of debts to suppliers of goods and services, the government promises to pay 1.5 billion meticais, and to release 1.1 billion meticais to pay due overtime to teachers and health professionals.

Source: Carta de Moçambique