Mozambique: Economy will slow to 4.5% growth this year - consultants
File photo: O Pais
The Managing Director of the International Monetary Fund understands that Mozambique is strengthening its institutions, hence the positive economic performance. Kristalina Georgieva highlights indicators such as low inflation, strong reserves, and high economic growth rate.
In the context of the spring meetings held at the headquarters of the Bretton Woods institutions, the President of the Republic was received yesterday by the Managing Director of the IMF, Kristalina Georgieva, to review the support program between the two countries.
Filipe Nyusi was accompanied by his team from the economic and finance sector, namely the Minister and the Governor of the Bank of Mozambique. From the meeting, Georgieva left happy, but she was even more satisfied when she saw the country’s current indicators. “I want to congratulate the President for the good performance of the economy. We have an active program with Mozambique, and I am happy to see that the country’s fiscal position has strengthened, growth is up, inflation is down, and reserves are strong,” highlighted the leader of that financial institution.
Georgieva knows what is behind this performance that, for her, is good. “These are gains from building strong institutions and implementing good policies. I look forward to visiting you, Mr. President. Thank you for coming.”
Such a stance coming from the IMF clears Mozambique’s name worldwide and makes investors from any corner of the globe feel encouraged to invest in the Mozambican economy.
WORLD BANK HIGHLIGHTS COUNTRY’S POSITION IN THE REGION
Before the meeting with the Managing Director of the IMF, the President of the Republic had already met with the World Bank’s manager, who also praised Mozambique in various areas, particularly youth employment and the country’s role in the region regarding supplying electricity to neighboring countries.
The context of the meeting was indeed the Spring Meetings held in Washington at this time of year. Ajay Banga and Nyusi had a high-level meeting resulting in prospects for more cooperation. However, before that, there is what is already being done, and Banga says it’s something good.
“He and I had a good discussion about the ongoing work… the results of the economic development that Mozambique is trying to achieve; progress in economic growth and inflation. But most importantly: we discussed opportunities for youth and their future and how investing in youth becomes the future of the country. So, we talked about its importance in terms of employment and how to create jobs with certain assets in which Mozambique performs very well,” said Ajaya Banga, referring to the programs that the country has been carrying out in these sectors internally.
Meanwhile, for the World Bank’s top manager, the most interesting part is noting that, at the same time, there are other things to be done for the region. “For example, energy… Not only has access to energy increased for its own population, and there is more to come, but they are also becoming a foundation for the electricity market in the southern Africa region, which is a great leap. There is much that the private sector and the government can do together, not only in electricity but also in other areas, including tourism and infrastructure, all aligned to create jobs for the future of our world, which is youth.”
EXXON MOBIL UNDER “CAREFUL” REVIEW ON DFI IN ROVUMA
On the agenda of the President of the Republic, who has been working in Washington since the beginning of this week, there was a moment to meet with one of the operators in area 4 of the Rovuma basin, which is ExxonMobil, which has not yet announced its final investment decision.
There is information indicating 2025, but the representative of the oil company, after the meeting with the President of the Republic, neither confirmed nor denied, just said that his team “is carefully looking at those dates.”
So far, what is known is that the American oil company is monitoring the security situation in Cabo Delgado. Last year, the multinational was optimistic, but that was before the attacks that took place earlier this year.
Exxon Mobil Mozambique will lead the construction and future operation of the LNG and related facilities for Area 4, while Eni will continue to lead the Coral floating LNG project and all upstream operations. The deepwater block of Area 4 contains reserves of over 85 trillion cubic feet of natural gas, which will provide resources for the world-class LNG project, in which partners expect to invest tens of billions of dollars.
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