The economic week was marked by significant developments, including Mozambique’s progress and challenges in complying with tax transparency requirements, the continued support of the African Development Bank (AfDB) and the announcement of the auction of the first assets recovered as part of the fight against money laundering.
The most recent Fiscal Transparency Report 2024 released by the US State Department provided an assessment of Mozambique’s performance in terms of fiscal transparency. The document concluded that although the country has shown significant progress, it has yet to fulfil the minimum requirements demanded internationally.
The US praised the elimination of off-budget accounts and the creation of a solid legal framework for the Sovereign Wealth Fund, but pointed out that the government’s budget documents still do not include all the allocations and earnings of state-owned companies, which weakens the public spending picture.
According to the report, among the recommendations of the US experts is the need to ensure greater transparency in the income and expenditure of state-owned companies, as well as making the military and intelligence budgets subject to parliamentary oversight.
This progress and the areas still to be improved are essential to strengthening market confidence and guaranteeing long-term economic sustainability.
Progress in Combating Money Laundering
Another highlight of the week was the announcement of the auction by the Asset Management Office (GGA) of the Ministry of Economy and Finance of the first assets recovered in the fight against money laundering.
The event, scheduled for 3 October, involves the sale of assets seized by the judicial authorities, including vehicles, tractors, containers and generators, among others. Buyers will have the opportunity to acquire the assets at a 30 per cent discount on the appraised value.
This auction is seen as an important step in strengthening transparency and good governance measures, as it allows assets seized as part of financial crimes to be properly administered, contributing to the strengthening of public finances. However, it has not been possible to confirm whether any of the assets auctioned are linked to the hidden debt scandal.
AfDB support boosts infrastructure and development
The celebration of the 60th anniversary of the African Development Bank (AfDB) was another relevant piece of news, with the revelation that the institution has provided around 216.2 billion meticals (3.5 billion dollars) over the last 47 years to finance 115 strategic projects in Mozambique.
Among the areas benefiting from the AfDB’s support are agriculture, energy, transport, water and sanitation, essential sectors for improving the country’s infrastructure and the population’s living conditions.
During the ceremony, Prime Minister Adriano Maleiane highlighted the AfDB’s crucial role in modernising the Nacala corridor and responding to crises such as Cyclones Idai and Kenneth. The continued support of the international financial institution has been fundamental to the country’s economic recovery and its resilience in the face of global challenges, including climate change and instability in Cabo Delgado province.
Maleiane and the Minister of Transport and Communications, Mateus Magala, reiterated the importance of the AfDB as a strategic partner, stressing that in the future the institution should focus on structural areas such as job creation for young people and women, the digitalisation of the economy and the management of public debts.
Felisberto Ruco
