Mozambique government reaffirms 7% growth forecast in 2016

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Mozambique government reaffirms 7% growth forecast in 2016

5:10 CAT | 15 Feb 2016

Jornal Notícias

Speaking yesterday during the closing of the 2015 Planning Meeting, between the government and the state budget Programme Aid Partners (PAP) group, Adriano Maleiane, Minister of Economy and Finance, acknowledged that the 2016 would be a difficult year, but emphasized that everything possible was being done to correct any possible negative effects on production.

The minister also rejected the need for an amending budget, because, he said, the floods and the rains, although worse than expected were already adequately covered by contingency plans.

“Floods and drought are above the forecasts in the Economic and Social Plan and will have a significant impact on agriculture and livestock production, but we do not believe this will affect the economic growth forecasts for this year,” Maleiane said.

The minister also expressed his hopes for the energy and gas sector, where, he implied, negotiations with operators of the Rovuma natural gas project in Cabo Delgado are almost completed.

“Negotiations on the Rovuma gas project are already completed. There is no longer anything to negotiate either with Anadarko or with ENI. We will have a meeting within days to finalize details,“ he said. Investments in this project may positively influence economic growth indicators as early as this year.

If all goes according to plan, Rovuma gas production could start in 2021. A few years later, Mozambique could be the world’s third largest producer of natural gas.

The meeting with the PAP group partners aimed to assess the government’s planning instruments, notably the Economic and Social Plan and state budget, as well as the definition of performance goals for the executive and partners for the 2016-2018 period.

The chairman and Portuguese ambassador José Duarte said that the last four months had been marked by changes in the macro-economic scenario, which could lead to the economic growth the country has been experiencing in recent years slowing down.

Duarte reaffirmed the partners’ commitment to predictability in the disbursement of funds pledged to the Mozambican government, which this year will reach US$305 million while pointing out some areas where government efforts to improve the management of funds might be focused., including ongoing public finance management reforms.

The partners recognized that there had been progress in this area, but reasserted the necessity for continued momentum. A further challenge is the fight against corruption and its effects on business environment in the country.

Duarte also mentioned peacekeeping as one of the major challenges that the country faces in order to maintain macroeconomic stability.

Source: Jornal Notícias