The governor of the Bank of Mozambique (BoM), Rogério Zandamela, said that the government’s high indebtedness is imposing serious limitations on the central bank’s operational capacity to implement effective economic policies.
The statement was made during a high-level conference in Rwanda entitled ‘The Role and Evolution of Central Banks’, which marked the 60th anniversary of the Rwandan national bank, according to the newspaper O País.
Zandamela detailed that the indebtedness of the public sector represents a significant obstacle for the BoM. “We have a heavily indebted government, the public sector is heavily indebted. This complicates our lives. However, we don’t stop there. When we analyse any corporate sector in the country, we also find considerable internal vulnerabilities,’ he said.
The governor also emphasised that Mozambique’s dependence on foreign aid is exacerbated by extreme weather events that regularly affect Mozambique. “Whenever a country like ours faces extreme climate change events, we depend on external support. And that’s not good. This situation is reflected in what was discussed this morning, about the need to reach out and ask for help,’ he added.
According to the information, faced with these challenges, the Bank of Mozambique has adopted measures to ease the pressure on the financial system, seeking to mitigate the negative impacts of high indebtedness and internal economic vulnerabilities. The conference, which brought together central bank leaders from various nations, served as a platform to discuss the challenges and transformations in the role of central financial institutions, emphasising the importance of robust and adaptive policies to face contemporary economic obstacles.
