Mozambique: IMF calls for “prudent” economic policies – AIM report

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Mozambique: IMF calls for “prudent” economic policies – AIM report

8:41 CAT | 12 Feb 2020

The Governor of the Bank of Mozambique, Rogerio Zandamela (L) also held a meeting with IMF Deputy Managing Director Tao Zhang . [Photo: Noticias]

The Deputy Managing Director of the International Monetary Fund (IMF), Tao Zhang, has insisted that the Mozambican government must continue implementing what he called “prudent” economic policies.

In a statement issued on Tuesday, after a four day visit to Mozambique, Tao said he was pleased that Mozambique is recovering from last year’s two devastating cyclones, but claimed that, “if growth is to accelerate further and become more inclusive, it is important that economic policies remain prudent and reforms continue”.

These, he added, “would include actions to strengthen governance and transparency, address climate vulnerabilities, and achieve the Sustainable Development Goals”.

Tao said the projects to produce liquefied natural gas (LNG) in the northern province of Cabo Delgado “have sizable potential and, given the appropriate policies and safeguards, could lift millions of people out of poverty”.

Switching to natural gas would reduce greenhouse gas emissions, although Tao warned that “zero-emission fuels will ultimately be needed in the fight against climate change”.

“The IMF stands ready to further strengthen its collaboration with the Mozambican authorities and help advance their reform agenda,” he declared.

During his visit, Tao was received by President Filipe Nyusi, and met the Minister of Economy and Finance, Adriano Maleiane, the Minister of Mineral Resources and Energy, Max Tonela, and the Governor of the Bank of Mozambique, Rogerio Zandamela.

He also spoke with representatives of civil society, private business and the donor community.

Source: AIM