Economic growth lacks human dimension, says former Mozambican prime minister

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Economic growth lacks human dimension, says former Mozambican prime minister

9:34 CAT | 03 Dec 2015

Lusa Moçambique / Luísa Diogo

The former prime minister of Mozambique Luisa Diogo said on Tuesday in Maputo that, despite enjoying robust economic growth, the country has not yet found a path to human growth.

“In terms of the impact [of foreign investment and economic growth] in people’s lives, Mozambique is still looking for the path of inclusion and humanization,” said Diogo, speaking on “Promoting Investment and Diversify Economy” during the 1st Great Mozefo Forum 2015, a platform for dialogue promoted by the private media group Soico.

Reiterating that Mozambique is one of the fastest growing economies in the world, Mozambique’s former first minister stressed the need for the country to diversify the productive sector, investing in areas with the potential to redress poverty.

“Diversification of the economy and investment are key factors in the humanization of economic growth, because they will grant access to the benefits of economic growth to the majority of the population and create more jobs,” said Diogo.

Agriculture, agro-processing, informal trade and informal sectors have the potential to combat poverty in the country, said Diogo, who has also served as minister of finance.

For Diogo, now president of one of the country’s leading banks, the Mozambican economy still has structural weaknesses urgently in need of attention.

“The Mozambican economy is robust in its growth, but fragile in its structure,” Diogo said, noting that “poverty has stagnated at 54 percent and the country is 178th on the Human Development Index”.

Diogo argued that there are contexts in which a country must have national production protection policies, such as when the Mozambican government found it imperative to revitalize the sugar industry and defend it from competition from the “giants of the region” in the sugar sector.

Speaking next, Eneas Comiche, former finance minister and governor of the Bank of Mozambique, reminded Mozambicans of the urgency of changing their mindset and being proactive in taking advantage of the economic growth levels that the country has been experiencing in recent years .

“We cannot stay on lookout, waiting to see what others do. Everyone must feel involved in the country’s development process,” said Comiche. Diversification of products and markets, such as the commitment to innovation and technological development, is essential if the country is to eliminate poverty.

Economist Roberto Tibana added that the country should learn from past experience and investment in a way that provides jobs and income for families.

“We know the kind of investment that has no impact on people’s lives,” Tibana stressed, contrasting the small number of jobs created by large-scale industry with the job-creation potential of smaller projects.

Source: Lusa Moçambique