Economists advocate transparency in Mozambique economic reforms

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Economists advocate transparency in Mozambique economic reforms

5:59 CAT | 22 Jun 2016

Voa (File hoto) / LAM is one of the state owned companies in Mozambique

According to economist Antonio Francisco, the Mozambican economy needs emergency measures, including a restructuring of at least 20 public companies, to minimize the budgetary problems that the country faces.

Francisco says that it is essential that this process is conducted effectively and that the government indicates in a transparent manner just what the place of public enterprises in the Mozambican economy is, and how it intends to handle domestic credit.

In the state budget for this year, subsidies to prices and public companies is more than two billion meticais, a figure considered very high by some economists.

The economist says the government must approach reform of these companies, in many of which the state holds all the share capital, with a positive attitude.

The public enterprises restructuring plan has been met with resistance by some company managers and employees, but Francisco says reforms are vital for regaining donor confidence.

One of the companies covered by the restructuring process is the Nacala Airport in Nampula, whose management is to be privatised. Economist Ragendra de Sousa has commented that the managers of this and other public companies, including Ematum, should be concerned first and foremost with finding markets for their businesses, in order to make them sustainable.

Source: Voa Portugues