IMF expects Mozambique to become one of the largest economies in Africa

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IMF expects Mozambique to become one of the largest economies in Africa

1:25 CAT | 25 Jan 2016

AFP (File) / Maputo's central market

By 2028 Mozambique could become one of the largest economies in Africa when production of natural gas discovered in the north reach its peak, said the International Monetary Fund (IMF) in a recent report.

According to the IMF Mozambique’s economy will grow 24 percent between 2012 and 2025 before falling back to growth of 3-4 percent in 2028.

The International Monetary Fund (IMF) considers that in the middle of the next decade half of Mozambique’s GDP will come from natural gas, but recommends a cautious approach given the sector’s sensitivity to international conditions.

In 2010, Mozambique found 180 trllion cubic metes of gas in the Rovuma river basin, in the northern province of Cabo Delgado. This gave the country the equivalent of Nigeria’s entire gas reserves.

The IMF also believes that Mozambique may be the world’s third largest gas exporter after Qatar and Australia, when production reaches its peak.

Source: Macauhub