The economic week was marked by Mozambique’s progress in the fight against money laundering, the economic contraction recorded in the last quarter of 2024 and guarantees of international financial support for the country. These dynamics demonstrate the challenges and opportunities faced by the government in managing economic stability.
On Tuesday (11), the government announced that Mozambique is close to leaving the Financial Action Task Force (FATF) Grey List, having fulfilled 25 of the 26 required actions. The spokesman for the Council of Ministers, Inocêncio Impissa, pointed out that the last outstanding item refers to updating the database of non-profit civil society organisations. A FATF team will visit the country in 2025 to audit the reforms implemented, and the government expects the list to be removed by the end of the first quarter.
However, a study by the Centre for Public Integrity (CIP) warns that the country may not be able to effectively demonstrate the sustainability of the measures implemented. The organisation is based on the Basel AML Index classification, which still places Mozambique among the countries most at risk of money laundering. In addition, the opacity of the ‘Stop Money Laundering’ operation raises doubts about the accountability of those involved.
In the macroeconomic sector, the last quarter of 2024 was marked by a contraction of 1.6 per cent, according to Standard Bank’s PMI index.
International Monetary Fund (IMF)
The bank’s chief economist, Fáusio Mussá, attributes this drop to post-election political instability, which resulted in protests and violence. However, a recovery of 3% is expected by 2025, driven by the stabilisation of the socio-political environment and growth in the extractive and industrial sectors.
On the other hand, Mozambique has received guarantees of financial support from various international partners, including the International Monetary Fund (IMF), the World Bank and the UN.
The funding will be earmarked for development projects in key areas such as agriculture, infrastructure, health and education. The World Bank, for example, currently has more than 40 active projects in the country, totalling more than 7 billion dollars.
Meanwhile, with regard to the management of hidden debts, the government announced the auction of 24 vessels belonging to the Mozambican Tuna Company (Ematum), one of those involved in the scandal. It is hoped to raise 10.6 million dollars from the sale of the fleet, which is in good condition but has no history of significant fishing activity.
This step aims to recover part of the amounts embezzled in the corruption scheme that involved senior government officials and resulted in international lawsuits.
Text: Felisberto Ruco
