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Mozambique: IMF expected to begin new financing programme – Watch

The director of the African department of the International Monetary Fund (IMF), Abebe Aemro Selassie, on Thursday said that he would begin discussions on a financing programme for Mozambique before the Covid-19 pandemic crisis ends.

“Yes, the authorities have expressed interest in having a financial support programme, and I am very pleased to begin negotiations on that,” Selassie responded during the press conference that served to present the Economic Outlook for Sub-Saharan Africa, released yesterday in Washington.

“This year we have very fast funding programmes, but countries should encourage their own strong and solid recovery,” said the Ethiopian economist, who leads the African department at the IMF.

Mozambique has repeatedly stated in public that it needs a funding programme from the Fund to correct macro-economic imbalances, which have deepened due to the Covid-19 pandemic and are expected to see negative economic growth of 0.5% of GDP this year.

Selassie showed great concern over the attacks in Mozambique that have been taking place in the northern province of Cabo Delgado and recalled other cases where violence has spread to neighbouring countries.

Also read: Africa needs US$1.2T of financing to beat Covid-19: IMF

“In the Lake Chad basin, with Boko Haram, and there are also security challenges in Mali that contaminate Nigeria, Burkina Faso and large parts of the Sahel,” Selassie noted, adding that solutions must be sought to combat this threat, it is very important not only for Mozambique but also for neighbouring countries.

Cabo Delgado province has been the scene of armed attacks for three years by forces classified as terrorists.

The violence has caused a humanitarian crisis with over 1,000 deaths and some 250,000 internally displaced persons.

  • Read the full IMF Regional Economic look for Sub Saharan Africa “A Difficult Road to recovery” HERE

Source: Lusa via Club of Mozambique

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