Africa Commodities Economy Gas Mozambique

IMF predicts double-digit economic growth for Mozambique from 2023

The International Monetary Fund (IMF) has projected that Mozambique will record double-digit economic growth starting in 2023, when the consortium led by multinational oil company ENI in the Rovuma basin is expected to begin production of liquefied natural gas (LNG), in the northern province of Cabo Delgado.

IMF representative in Mozambique Ari Aisen told the AIM news agency that Mozambique’s medium-term growth will take a significant leap based on revenues from natural gas exploration.

“It is important to manage expectations, because revenue collection for the state coffers will still take some time, hence the need for patience,” said Aisen, who spoke to AIM during the US-Africa Summit, a three-day meeting that began on Wednesday in Maputo.

Aisen also called for transparency in the management of resources in order to avoid conflicts and recommended greater involvement of all stakeholders, including civil society and state financial institutions, such as the Central Bank and the Ministry of Economy and Finance.

“These resources are very high and can, therefore, bring volatility to the local economy if they are not well managed. It is also important to ensure political independence so as not to influence technical criteria in resource management,” he said.

Source: Macauhub

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