The World Bank (WB) has given
praise to Mozambique, although it has made clear it awaits a conclusive
commitment between the IMF and the Mozambican government and a clarification on
hidden debts.
Even so, the WB has announced
an investment of more than one billion euros for the sectors such as health,
education, agriculture and infrastructures. The main focus is on subsistence
agriculture, since the country is constantly subject to natural disasters, the
result of climate change and also because the country needs production and
productivity growth, mechanizing the agriculture. The WB, through his
representative, also praised the role played by the private sector in the
extractive industry, suggesting that the industry will also receive support in
the coming years.
It was also emphasized that
the sustainability of public debt remains under review. One shouldn’t forget the
WB is concerned about the loans contracted by the public companies Proindicus,
EMATUM and MAM - related to the sustainability of the public debt of Mozambique
- a significant part of the funds which continues to allocate to State Budget
are new loans which at some point the Mozambicans must pay back.
The "icing on the
cake", the World Bank foresees a possible 4.5% growth in the Mozambican
economy, after only 3.7% growth in 2016.
That
optimistic prediction will only be sustained if economic reforms are underway
in key sectors, and if inflation continues to decline.
The bureaucracy, however, is
still a strong hindrance to business development in Mozambique. This is
reflected on the execution of businesses that are done very slowly, often also
discouraging the private sector.
In any case, despite some more
optimistic WB views, the government, in particular President Filipe Nyusi, has
yet to catch up in the face of promises made.
Miguel Verde - Senior Consultant, Professor of
International Relations
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