Mozambique: Opinions are divided about the role of the IMF

Login

Register

http://www.clubofmozambique.com/

Mozambique: Opinions are divided about the role of the IMF

2:15 CAT | 12 Sep 2016

AP (File photo)

With President Nyusi on his way to Washington to meet International Monetary Fund (IMF) chief Christine Lagarde, analysts at home differ on the role of the IMF in the recovery of the Mozambican economy.

Heated debates have taken place across the country on the body’s role in helping Mozambique overcome its economic difficulties. Some consider it irrelevant. Others believe that it is essential for macroeconomic stability.

An IMF delegation arrives in Maputo this month for a much-anticipated mission that could help Mozambique enhance its cooperation with other partners, clearing the way for economic recovery.

Out of the debates, voices have emerged arguing that with good management of its natural resources, Mozambique can do without the IMF. The sale of the Italian company ENI stake in the Rovuma Block 4 natural gas exploration could net the state US$1.2 billion dollars in taxes, solving the debt issue at a stroke.

Economist António Francisco disagrees, mainly because “at this time, the rating agencies put the country in a situation of default”.

Former minister of finance Magid Osman believes that an agreement with the IMF is critical, “because only then can we restore macroeconomic stability and investor confidence”.

This month, the Mozambican President Filipe Nyusi will meet in Washington with the director general of the IMF Christine Lagarde to, among other issues, discuss Mozambique’s debt.

Source: Voa Portugues