Economic forecast cut to 3.7%, confirms Minister of Finance of Mozambique

Login

Register

http://www.clubofmozambique.com/

Economic forecast cut to 3.7%, confirms Minister of Finance of Mozambique

4:47 CAT | 03 Nov 2016

The Mozambican government has revised its forecast for economic growth this year down to 3.7 per cent, the Minister of Economy and Finance, Adriano Maleiane, said on Wednesday.

Speaking in Maputo, at an investment conference organized by the British newspaper the “Financial Times”, Maleiane that the initial target, at the beginning of the year, was for a growth rate of seven per cent. “Then we revised the rate, in the amended budget in June, to 4.5 per cent”, he said. “The last assessments we made, in September, indicate that growth will be 3.7 per cent”.

Even that may prove optimistic. Maleiane admitted that, if peace does not return to the country, “it will be difficult for us to reach the 3.7 per cent”.

A peace deal depends on the talks in the Joint Commission set up between the government and the Renamo rebels, which will not resume until 10 November. So far there is no sign of Renamo disbanding or disarming its illegal militia.

Maleiane also told the conference that the terms of reference for the independent international audit into the three quasi-public companies (Ematum, Proindicus and MAM) that benefitted from enormous loans illegally guaranteed by the previous government, under President Armando Guebuza, are almost complete. The following phase is the hiring, by the Attorney-General’s Office, of an independent external auditor.

The audit is a key condition for the International Monetary Fund (IMF), and Mozambique’s other western partners, resuming normal relations. Maleiane said the audit would reveal what has happened to the over two billion US dollars lent to the three companies, and whether it can all be accounted for in the assets they have acquired.

“Because we, as a state, gave the guarantees, we have the obligation to be concerned”, said Maleiane. “It’s good for all of us, for the previous government and for this government, at least to know what the independent audit says about what was done”.

According to the conference report in Thursday’s issue of the independent daily “O Pais”, the IMF representative in Maputo, Ari Aisen, predicted that the Fund will resume lending to Mozambique, but not before March 2017.

“It’s not possible to forecast the exact date”, he said, “but I’m hopeful it will be at the end of the first quarter. An important step has been taken in the question of restructuring the debt, the macro-economic policies are being adjusted in the right direction, and on the audit one can note that the Attorney-General’s Office is working intensely”.

“I hope that we shall have good news quickly”, added Aisen, “and in line with these three factors, I think there are good prospects of the IMF returning to the country”.

Source: AIM