Mozambique is one of the six countries with most inequalities on the African continent, concludes the latest World Bank (WB) report, published last Friday, 10 March, in Maputo.
According to the financial institution, poverty levels in Mozambique remain high, and agriculture is the area that employs around 70 percent of the population. Even so, productivity is still weak compared to its potential.
“It is difficult, if not impossible, to promote inclusive development without increasing or improving productivity in the agricultural sector,” said Fiseha Haile, a World Bank economist.
In terms of job creation, the country is a long way from meeting demand. For example, the coal and aluminium industries, which provide 70 percent of revenues to the State, contribute only 0.3 percent to job creation, the report said.
“Currently, the Mozambican economy creates almost 25,000 jobs in the formal sector, but the demand for employment is very high. The number of people entering the labour market in Mozambique each year is 500,000. So the difference between the supply of jobs and demand is very big,” said Fiseha Haile.
In this context, the economist said that it is necessary to reduce inequalities between people in order to achieve development.
“Mozambique is one of the six countries with the most inequality in Africa, hence the need to promote development in non-extractive sectors and speed up the process of economic transformation and job creation,” he said.
According to him, for Mozambique to be a middle-income country by 2043, as outlined in the National Development Strategy, it would have to grow by an average of 12 percent per year for almost 20 years.
The World Bank forecasts national economic growth of 5 percent this year and 8.3 percent in 2024, driven by the hydrocarbon industry.
