The economic week was marked by some good news for the Mozambican economy. A softening of the tone of the general demonstrations, news of the scheduled dialogue between all the presidential candidates and, on an economic level, the growth of credit to the economy in the first nine months of the year. On the other hand, the increase in civil service wage bills is worrying and, looking further ahead, the debate continues, still warm, on the potential benefits of possible membership of the BRICS.
Mozambique Among the World Bank’s Main Beneficiaries
Since 1961, Mozambique has accumulated 574.2 billion meticals (9.3 billion dollars) in financing through the International Development Association (IDA), an arm of the World Bank. This volume places the country among IDA’s top ten global recipients, reflecting the priority given to the African continent, which has received 73% of the funds.
The resources have been invested in sectors such as infrastructure, health, education and energy, with an impact on programmes such as ‘Energy for All’. However, experts warn of challenges related to corruption and inefficient management, which can jeopardise the results of funded projects.
Credit to the Economy grew by 3.8 per cent in September
According to the Ministry of Economy and Finance (MEF), credit to the economy grew by 3.8% between December 2023 and September 2024, totalling 287.5 billion meticals (4.4 billion dollars). This growth was fuelled by the national currency component, especially in sectors such as the manufacturing industry, private individuals and the extractive industry.
Accumulated inflation in the period slowed to 1.20 per cent, while average interest rates fell from 24 per cent to 20.62 per cent on new loans. The metical remained stable against the dollar, euro and rand, reflecting a more favourable economic environment.
Expenditure on public salaries grows by 4.2 per cent
Expenditure on civil service salaries totalled 152.9 billion meticals (2.3 billion dollars) up to September, representing an increase of 4.2% compared to the same period in 2023. This figure corresponds to 79.7 per cent of the total forecast for 2024, which is 191.7 billion meticals (2.9 billion dollars).
The government argues that the implementation of the Single Salary Table (TSU) has reduced wage discrepancies and doubled the minimum wage in the civil service. However, the medium-term budgetary pressure worries institutions such as the IMF, which predicts an additional impact of 31 billion meticals (480.9 million dollars) by 2025 if spending is not rationalised.
Debates on the BRICS: Opportunities and Risks
Mozambique’s possible membership of the BRICS has sparked discussions about the benefits and challenges for the country. Experts highlight the possibility of greater access to credit and facilities for exporting natural gas and coal, but warn of the risks of jeopardising the policy of non-alignment and political and economic stability.
Economist Egas Daniel emphasises that the BRICS can offer advantages such as less bureaucracy in access to finance. However, Wilker Dias, an international relations analyst, argues that joining the bloc could jeopardise Mozambique’s neutrality in international relations, especially in a context of global polarisation.
Text: Felisberto Ruco
