Former Governor of the Bank of Mozambique, Prakash Ratilal, has called for the adoption of a national agenda of structural reforms to reduce poverty, tackle unemployment and transform economic growth into inclusive development, arguing that Mozambique has the resources needed to achieve development but remains constrained by structural challenges that prevent it from realising its full potential.
Speaking on Wednesday (8) at the International Conference on Inclusive and Sustainable Development of Mozambique, the economist said the country faces obstacles related to low productivity, external dependence, institutional fragility and the inconsistent implementation of public policies.
According to Ratilal, increasing agricultural productivity remains the main pathway for absorbing the approximately 500,000 young people who enter the labour market each year. However, he lamented that this priority has remained, for decades, more a matter of political rhetoric than concrete action.
“Raising agricultural productivity is the only sector capable of absorbing the approximately 500,000 Mozambicans who enter the labour market or seek livelihoods every year,” he said.
The former central bank governor warned that the persistence of poverty, unemployment and inequality could further aggravate social tensions and undermine the country’s economic and political stability unless structural measures are implemented.
In his address, he argued that Mozambique must move away from its long-standing dependence on external aid and adopt its own national development agenda capable of guiding economic policy over the coming decades. According to Ratilal, this vision should answer the fundamental question of what kind of country Mozambique aims to become by 2050.
The economist outlined two possible scenarios for the country’s future. The first would see the continuation of the current growth model, based on the exploitation of natural resources but unable to significantly improve living standards, leaving high levels of poverty, unemployment, inequality and import dependence unchanged.
The second scenario involves the structural transformation of the economy through production diversification, investment in people, innovation, stronger institutions and improved public administration.
“Mozambique has almost everything it needs to succeed. What we are missing is precisely that ‘almost’—which requires deep reforms and a change in the way we pursue development,” he said.
Among his priorities, Ratilal highlighted the need to restore market confidence quickly by strengthening coordination between monetary and fiscal policy, consolidating public finances and implementing reforms capable of enhancing the country’s credibility with investors.
He also proposed a structural reform of the civil service, including measures to sustainably control the growth of the public sector wage bill, as well as a gradual realignment of the exchange rate, arguing that these steps would help improve the economic environment.
The former governor also reiterated his support for a new cooperation programme with the International Monetary Fund (IMF), arguing that such an agreement would restore international confidence and facilitate access to external financing.
Ratilal further called for the launch of a national support programme for micro, small and medium-sized enterprises (MSMEs), describing the sector as one of the country’s main drivers of job creation, economic diversification and poverty reduction.
He also stressed that sustainable development requires greater discipline in the management of public resources, an effective fight against corruption, stronger accountability for public officials and strict compliance with the rule of law.
The former Governor of the Bank of Mozambique concluded by calling for the development of a shared national vision for 2050, founded on discipline, good governance and reforms capable of creating a more productive, inclusive and sustainable economy, with poverty and unemployment reduction placed at the centre of public policy.
About the event
The International Conference on Inclusive and Sustainable Development of Mozambique is taking place on 8 and 9 July at the Mozambique-China Cultural Centre in Maputo, bringing together government officials, academics, researchers, private sector representatives, development partners, civil society organisations, financial institutions and international organisations.
Organised by the Ministry of Planning and Development, the conference aims to assess Mozambique’s development trajectory between 2000 and 2025 and build consensus around the country’s strategic priorities for the coming decades.
Over the two-day event, participants are discussing issues including economic growth, structural transformation, social inclusion, governance, human capital, environmental sustainability and competitiveness, with contributions from government officials, economists, development experts, universities, research centres and multilateral institutions, as part of a broader reflection on Mozambique’s development vision through to 2050.
Text: Felisberto Ruco
