The governor of the Bank of Mozambique (BdM), Rogério Zandamela, defended last Friday, 13 October, in Marrakech, Morocco, during the Annual Meetings of the International Monetary Fund (IMF) and the World Bank (WB), the need for additional financing, taking into account the climate shocks that the country has been suffering with greater frequency and intensity.
At a meeting between the Mozambican delegation and the director of the IMF’s African Department, Zandamela pointed to challenges in revenue collection and the sustainability of public debt.
Together with the Deputy Minister of Economy and Finance, Amilcar Tivane, the BdM governor shared the recent situation of the macro fiscal and monetary environment, including the outlook for next year, referring to the gradual recovery of Mozambique’s economy post-covid-19, with an annual growth rate of 7 per cent expected for 2023 and 5 per cent for 2024.
The source stressed that annual inflation was on a downward trend, having stood at 4.6 per cent in September this year, “after closing last year at 10.9 per cent, reflecting the tightening of monetary policy and exchange rate stability”.
For his part, Amilcar Tivane shared the state of play of the salary reform, explaining that “the effort continues to be to stabilise the volatility of the payroll, carrying out continuous audits of the process in the Single Salary Table (TSU) and incorporating all salary payments in the security area into the State Financial Administration System”.
Meanwhile, Abebe Selassie praised the efforts of the Mozambican government for the degree of implementation of the reforms and encouraged it to continue at the same pace; he referred to the IMF’s new lines of financing, with emphasis on the Resilience and Sustainability Trust Fund (RST) as a window of resources for countries most affected by climate change and emphasised the need for adequate calibration of fiscal and monetary policies in order to ensure the consolidation of macroeconomic stability in the medium term.