Mozambique may sign new programme with IMF

Maputo, 1 Jul (AIM) – Mozambican President Daniel Chapo has revealed that the country is in the process of negotiating a new programme with the International Monetary Fund (IMF) in the context of reforms that the government is carrying out.

“We think we should have a new programme with the IMF. We think that during the course of this year, if all goes well, we will sign the new programme”, the President told reporters on Monday on the sidelines of the Fourth United Nations Conference on Financing for Development (FFD4), in the Spanish city of Seville.

According to Chapo, the IMF knows that the Mozambican government has a new reform programme, “which is why we have a Central Office for Reforms and Strategic Projects, in the President’s office, and we think we should have a new programme with the IMF.”

“We will sign a new programme that can allow us to continue an excellent relationship with the IMF, but with a new vision. The new vision must be based on reforms in the public sector and, above all, on the need to create a good business environment in Mozambique, so that the country can continue to attract investment, both domestic and foreign”, he said.

Chapo also held a meeting with the World Bank chairperson Ajay Banga, with whom he reflected on Mozambique’s development programmes, especially the ongoing reforms in the public sector, as well as the country’s need to improve the performance of Mozambican banks.

“Both the IMF and the World Bank fully agree on supporting the reforms, especially the need to fight corruption,” he said, particularly through the digitalisation of public institutions, since they regard digitalisation as one of the platforms that will help fight corruption.

Chapo also stressed Mozambique’s plans to expand the generation of hydro-electric power, particularly by building a new dam at Mphanda Nkuwa on the Zambezi river, about 60 kilometres downstream from the existing dam at Cahora Bassa.

He told the World Bank delegation of the importance of the liquefied natural gas (LNG) projects in the Rovuma Basin, off the coast of the northern province of Cabo Delgado. He was optimistic that the French company TotalEnergies will soon lift the declaration of force majeure which it imposed on its LNG project in Palma district following a major terrorist attack in March 2021.

World Bank support for what Chapo described as “structuring projects” would be “of extreme importance”, the President said, since it would help solve energy problems, not only in Mozambique, but in the southern African region.

“South Africa, Eswatini, Botswana, Zambia and Zimbabwe are facing energy crises, and we have the potential to help eliminate this situation”, said Chapo.
(AIM)
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