A mission from the International Monetary Fund (IMF) is already in Mozambique, where it intends to make a two-week visit as part of the evaluation of the fourth review of the Extended Credit Facility (ECF) programme.
According to information published on Tuesday 7 May by Semanário Económico, the mission that arrived these days met with some government officials, including the Minister of Economy and Finance (MEF), Max Tonela and the governor of the Bank of Mozambique, Rogério Zandamela.
On the occasion, the head of the MEF said that the current challenge has been to calibrate fiscal and structural measures to maintain the pace of fiscal consolidation, ensure a sustainable path for the wage bill, improve the sustainability parameters of public debt and the capacity to mobilise resources to meet the economy’s financing needs.
‘The progress we have made throughout this journey has been extremely important for deepening macroeconomic stability and the resumption of sustainable growth in the Mozambican economy. We also salute the IMF team and express our appreciation for all the support and commitment invested in Mozambique,’ he emphasised.
Tonela praised the fact that a lot of work had been done in previous missions, noting that the dynamic nature of the national economy means that new challenges are being identified, especially the need to adjust the economic policy framework to cushion the impact of climate shocks and the challenges posed by terrorism in the northern region.
‘Despite the various challenges, the government remains committed to strengthening its engagement with the IMF in order to achieve the objectives set,’ he added.
In January, the IMF approved the third review of the financing programme for Mozambique, guaranteeing the ‘immediate disbursement’ of 60.7 million dollars for budget support.
‘The Executive Board concluded the third review of the implementation of the Extended Credit Facility (ECF) programme for Mozambique. With this new allocation, total disbursements to the country amount to 273 million dollars,’ the institution said in a statement.
‘The progress we have made throughout this journey has been extremely important for the deepening of macroeconomic stability and the resumption of sustainable growth in the Mozambican economy. We also salute the IMF team and express our appreciation for all the support and commitment invested in Mozambique.’
According to the organisation, the programme’s performance has been satisfactory: ‘five of the eight structural benchmarks were met at the end of December 2023, and three of the four quantitative performance criteria were met.’
‘Economic recovery is accelerating, supported by liquefied natural gas (LNG) projects in a context of modest non-mining growth. At the same time, inflationary pressures have declined markedly. Although the outlook remains positive, significant risks remain, mainly due to adverse weather events and the fragile security situation,’ warned the IMF’s deputy managing director, Bo Li, quoted in the same communiqué.
The source recalled that this technical assistance programme ‘aims to support Mozambique’s economic recovery and reduce public debt and financing vulnerabilities, while promoting higher and more inclusive growth through structural reforms’.
Source: 360 Mozambique