The resident representative of ADB – African Development Bank, Pietro Toigo, is not very concerned with the strengthening of the Metical against the Dollar, but with the abrupt way in which the national currency has appreciated, with sharp variations in the exchange rate, which affects private sector planning. For Pietro Toigo, exchange rate stability and predictability are very important factors for the business sector, especially for those who export.
For the ADB representative in Mozambique, in the monetary policy component, the main objective was achieved, which is to control inflation, but this accentuated strengthening of the Metical makes domestic production less competitive.
In the fiscal component, Pietro Toigo said that the ADB is in dialogue with the Government of Mozambique for the introduction of reforms in order to make it more efficient and encourage the private sector. For the ADB representative, the best way to broaden the tax base is to broaden the scope rather than increase the tax burden, because this suffocates companies, especially small and medium-sized ones.
As a short-term measure, Pietro Toigo referred to the need to implement a faster and more effective vaccination campaign, in order to achieve collective immunization in a short period of time. In the long term, he pointed out the need to invest more in agriculture and agro-processing, sectors that Mozambique has a competitive advantage. For Pietro Toigo, agribusiness can be the basis for the industrialization of Mozambique and an anchor for other businesses, such as logistics, packaging, among others.
