Mozambique: IMF praises Mozambique's economic policies

The International Monetary Fund (IMF) has praised the manner in which the Mozambican government has been dealing with the current global economic downturn, but warns that urgent measures are required for economic growth to become more inclusive.

Speaking at a press conference in Maputo on Tuesday at the end of her visit to Mozambique, Antoinette Monsio Sayeh, Director of the IMF’s African Department, said that for economic growth to become more inclusive the country needs to prioritise investments in sectors with an impact on poverty reduction.

Cited in the daily newspaper “Noticias”, Sayeh explained that inclusive economic growth requires an improved business environment and the maximisation of tax revenues from projects exploiting natural resources. Other important components include good governance and fighting corruption. “Education and training are also key elements”, she stressed.

As for the impact of special economic zones on Mozambique’s development, Antoinette Sayeh said that this strategy has the merit of improving the business environment, but has the disadvantage of being localised.

According to the IMF official, at a time when Europe is plunged into a deep economic crisis it is appropriate for developing countries, including Mozambique, to adopt strategies to reduce external dependence to limit the impact of a possible drop in foreign aid.

Sayeh pointed out that Mozambique is not facing any cuts in support as its international cooperating partners have confirmed their disbursements for 2012. However, the IMF still advises that precautionary measures should be taken.

In the light of the deteriorating economic and financial situation of Europe, the IMF has revised downwards its forecasts for growth in Africa, particularly for countries such as South Africa which have strong trade relations with that continent.

During her visit to Mozambique, Sayeh met with members of the Mozambican government, including Prime Minister Aires Ali.

Post published in: Africa News

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