The International Monetary Fund (IMF) has suggested that the government ‘improve’ the fiscal framework for ‘sustainable public investment spending’, considering that, despite the gains made, namely with the definition of the medium-term budgetary framework, published before the State Budget (SB) is drawn up, it is important that fiscal rules are implemented.
In a report on the ‘Public Investment Management Assessment’, carried out at the request of the Ministry of Economy and Finance, the financial institution emphasised that the fiscal risk report should be improved, stressing the need to ‘introduce climate considerations into the main projects of the next national planning cycle. Climate-related information needs to be improved in project evaluation and building codes, as well as ensuring that ongoing investment projects are pursued during budget execution,’ it pointed out.
According to the IMF, the country should ‘strengthen cash management and commitment controls to ensure that project expenditure is on budget and that invoices are paid on time to avoid delays.’
In the document, the organisation also advocated carrying out a ‘quantitative analysis of natural disasters related to fiscal risk’ as one of the measures ‘to achieve greater development of the infrastructure and improve its efficiency, also taking climate change into account.’
Mozambique is considered one of the countries most severely affected by climate change in the world, facing cyclical floods and tropical cyclones during the rainy season, which runs from October to April.
On Sunday 15 December, the passage of cyclone Chido through the provinces of Nampula and Cabo Delgado caused at least 15 deaths, according to preliminary estimates.
The 2018-19 rainy season was one of the most severe on record in Mozambique: 714 people died, including 648 victims of cyclones Idai and Kenneth, two of the biggest ever to hit the country.
Government figures indicate that in the first half of 2023, the heavy rains and the passage of Cyclone Freddy caused 306 deaths, affected more than 1.3 million people, destroyed 236,000 homes and 3,200 classrooms.
