World Bank lowers Mozambique's growth forecast to 3%
Mozambique: President Chapo wants a new era of cooperation with Bretton Woods institutions
1:22 CAT | 01 Jul 2025
Photo: TVM
President Daniel Chapo expressed in Seville, Spain, this Monday the commitment of the Mozambican government to deepening relations with the International Monetary Fund (IMF) and the World Bank, within the framework of a new vision focused on public sector reforms, investment promotion and development of structural projects.
The head of state revealed the fact to the press after meetings with the Deputy Managing Director of the IMF, Nigel Clarke, and the President of the World Bank, Ajay Banga, on the sidelines of the 4th United Nations International Conference on Financing for Development (FFD4).
“The meetings went very well. As you know, we have a very old historical relationship that has lasted for years, which is why we believe it is very important for us to have these meetings with the two Bretton Woods institutions,” said the Mozambican president.
With the IMF, President Chapo stated that he shared the government’s interest in initiating negotiations with a view to a new cooperation program, taking into account the reform package underway in the country. “We believe that we should have a new program with the IMF. And the reception in this regard is very good, so much so that we believe that, over the course of this year, if everything goes well, we will sign a new program,” he stated.
The eventual new program with the IMF, Chapo explained, should reflect the executive’s new vision and prioritize interventions to boost the public sector and create better conditions for investment. The aim is to “continue an excellent relationship with the IMF, but with a new vision based on reforms at the public sector level, especially issues related to the need to create a good business environment in Mozambique”, he stressed.
At the meeting with the World Bank, President Chapo also addressed the reform process and the role of digitalization in improving governance and combating corruption. “They believe that the digitalization program we are implementing is one of the programs that will significantly combat corruption,” he said.
The head of state highlighted the World Bank’s recognition of digital transformation efforts and the institution’s commitment to supporting this process, with a focus on modernizing public administration. “They highly praise the existence of the Ministry of Communications and Digital Transformation and also promise to provide significant support for the digitalization process in Mozambique,” he added.
In terms of economic development, the President of the Republic shared with the World Bank the vision of Mozambique as a future regional energy hub, highlighting projects such as the expansion of the Cahora Bassa Hydroelectric Plant (HCB), Mphanda Nkuwa and the exploitation of Rovuma gas as priorities. “We have a large gas production capacity and we can also build several plants and increase our electricity production capacity in Mozambique,” he said.
Opportunities were also discussed in the agriculture, tourism, mineral resources and industrialization sectors, with emphasis on the role of strategic logistics corridors. “We talked about the Maputo Corridor, roads, railways, increasing the capacity of our ports, the Beira Corridor, the possibility of building more pipelines […] and the Nacala Corridor,” he explained.
The Mozambican president argued that investment in productive sectors and infrastructure should have a direct impact on the lives of Mozambicans. “Our main concern is to generate employment for our youth, for women and to develop our country,” he said.
President Daniel Chapo concluded that both the IMF and the World Bank were encouraged by the reforms underway and receptive to the government’s new approach. “They are very motivated by the reforms we are carrying out and the new vision we have as the new government to develop Mozambique in the coming years,” he concluded.
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