Mozambique: The IMF proposes improvements in public investment

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Mozambique: The IMF proposes improvements in public investment

12:28 CAT | 26 Dec 2024

File photo: Noticias

The International Monetary Fund (IMF) proposes medium-term actions to the Government of Mozambique aimed at strengthening the public investment management system. Among the recommendations, the IMF emphasizes the enhancement of information published about ongoing projects, including costs within national and sectoral plans and the State Budget, to better align strategies with multi-year and annual budgets.

It also recommends that the Government continue reforms in the public investment module, including information systems and preliminary evaluation processes, with the goal of improving project quality. Additionally, the IMF suggests enhancing the fiscal framework for sustainable public investment expenditures, implementing fiscal rules, and continuing to refine the risk reporting framework.

These recommendations are part of an IMF report on the Public Investment Management Assessment (PIMA), prepared at the request of Mozambique’s Ministry of Economy and Finance (MEF). In the document, a copy of which “Notícias” accessed, the international financial institution also highlights the need for improvements in public contract awarding processes, advocating for an open competition approach, the introduction of complaint mechanisms, and greater dissemination of analytical information about contracts.

The report concludes by proposing the inclusion of climate considerations in major projects in the next planning cycle, as well as improvements in climate-related information in project evaluations and building codes. The institution’s assessment aims to identify opportunities to strengthen the public investment management system, increasing expenditure efficiency and bolstering the economy.

However, according to the IMF, the country has a relatively solid legal and institutional framework but still faces significant challenges in its implementation.

It notes that despite progress since 2020, including reforms in the Public Finance Management system, such as the SISTAFE Law (State Financial Administration System) and the public investment module, there is still room for improvement.

Source: Noticias