Mozambique: Nyusi victory means dialogue with creditors but instability – Fitch

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Mozambique: Nyusi victory means dialogue with creditors but instability – Fitch

9:20 CAT | 30 Oct 2019

File photo: Lusa

Fitch Solutions on Tuesday said that Filipe Nyusi’s victory in Mozambique’s presidential elections means maintaining a dialogue with debt creditors but warned that the risk of instability remains high.

“With President Filipe Nyusi and Frelimo in power, remaining in power following the elections, we hope that the government will continue the dialogue with the holders of sovereign debt that began before the elections,” according to a comment on the elections.

The comment sent to investors and to which Lusa had access, said the analysts of this consultancy held by the same group that also owns the rating agency Fitch, also stated that even if a new armed conflict is unlikely, the risks to the peace process remain.

“The risks to political stability will remain high as Frelimo’s resounding victory follows several incidents of political violence on the eve of the elections and allegations of electoral fraud by the main opposition party, Renamo,” analysts said.

“We maintain that a return to a major conflict between the two parties is highly unlikely, but the risks to the recently signed peace agreement will persist,” they warned.

The election results, announced by the National Election Commission (CNE) on Sunday in Maputo, gave a big advantage to the ruling Frelimo Front for the Liberation of Mozambique, whose candidate, Filipe Nyusi, was re-elected in the first round for a second term as president, with 73% of the votes.

The Mozambican National Resistance (Renamo, the main opposition party) has already contested the results and announced that it will on Tuesday present an appeal to the Constitutional Council (equivalent to the Constitutional Court), pointing out alleged irregularities in the electoral process.

The Democratic Movement of Mozambique (MDM), the third parliamentary political force, does not accept the results, alleging widespread fraud.

Source: Lusa