On July 8, 2024, the International Monetary Fund (IMF) approved a $60.03 million disbursement to Mozambique under the fourth review of the Extended Credit Facility (ECF) agreement.
Initially approved in May 2022, the program, totaling approximately $456 million, aims to support Mozambique’s efforts to restore macroeconomic stability, ensure debt sustainability, and foster stronger and more inclusive economic growth through various structural reforms.
The IMF noted mixed results in implementing the reform program. While three out of four structural benchmarks were met, only two out of four quantitative performance criteria were achieved.
Mozambique’s economic growth is projected to slow from 5.4% in 2023 to 4.3% this year due to restrictive financial conditions hampering economic activity, the IMF reported.
“While inflation pressures have declined, Mozambique faces significant risks, mainly from adverse climate events and the fragile security situation,” said Bo Li, IMF Deputy Managing Director.
Since 2017, Mozambique has been grappling with an Islamist insurgency in its gas-rich northern region. The economy took a further hit after Cyclone Freddy in 2023, causing significant damage and worsening food insecurity.
Beyond economic prospects, the IMF emphasized the need for Mozambique to continue fiscal consolidation given the country’s high debt and tight financing conditions.
“Revenue mobilization and wage bill spending rationalization are essential to create fiscal space for high-priority social and development spending,” Bo Li added.
Novo Nordisk cuts Wegovy prices in South Africa amid competition Move targets rival Eli Lil...
Firms move beyond payments toward integrated SME platforms Services include invoicing, inve...
The BCEAO now allows UEMOA citizens abroad to open CFA franc accounts under the same conditions as...
WAEMU posts 3.31 trillion CFA francs trade surplus in Q4 Exports surge 50.4%, led by gold, ...
ECOWAS, Energy China discuss regional power infrastructure cooperation Talks cover $36.3...
Keith Hill appointed chairman as company reshapes governance Brings decades of experience in African oil exploration Move comes as Eco Atlantic...
$500 million IDA credit to support small farmers and agribusiness Project targets key crops including rice, maize, cassava, and soy Initiative aims...
Stéphane Richard joins MTN board as independent non-executive director Appointment signals focus on governance and long-term strategy Move comes as...
Estimated resources rise to 1.38 billion barrels of oil equivalent Volumes remain contingent, not yet classified as recoverable reserves New drilling...
The Bijagos Archipelago, located off the coast of Guinea-Bissau, stands as one of West Africa’s most extraordinary island systems. Made up of around forty...
RFI confirmed the end of “Couleurs Tropicales” following Claudy Siar’s departure after 31 years. The move follows a series of high-profile exits...