Mozambican analysts urge deep reforms and an end to armed conflict

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Mozambican analysts urge deep reforms and an end to armed conflict

1:48 CAT | 31 Jan 2017

Voa (Fie photo)

The Mozambican president has recently said that he is optimistic about the recovery of the economy, but economists say that without effective peace and deep economic reforms it will not be possible to keep the economy going.

President Nyusi said last Friday at the inauguration of a new building for the Commercial and Investment Bank of Mozambique that the economy was recovering from the fall it registered in 2016 and from the external shocks which had had varying impacts on the country’s main economic indicators.

The recovery of the economy, according to Nyusi, was evidenced in the recovery of the national currency, the metical, against the US dollar, and of international net reserve levels.

But some economists say that it will be difficult to maintain this recovery without deep reforms, including, for example, diversification of the economy.

There was a lot of euphoria in Mozambique following the discovery of coal, but this somehow only made the Mozambican economy dependent on an energy resource, and economists believe that when economies focus on a single product, vulnerabilities are created in the event of changes in the international market.

By the end of 2016, the Mozambican economy had experienced its worst figures in the last 15 years, growing only 3.5 percent, after having registered rates above 5 percent over the entire previous decade.

Source: Voa Portugues