Finance Minister Carla Loveira met this week with the World Bank's regional director for Mozambique, Fily Sissoko, in Washington, on the sidelines of the IMF and World Bank Annual Meetings. The meeting focused on strategies to accelerate economic growth and strengthen Mozambique's macro-fiscal stability.
During the meeting, the two officials reviewed areas considered priorities for the country's development. The main topics discussed included job creation and economic opportunities, attracting foreign direct investment, promoting development corridors and stimulating value chains in the agribusiness and tourism sectors.
Carla Loveira acknowledged the challenges the country is going through, highlighting the contraction in the productive sectors and the persistent pressures on public finances. “We are facing a combination of factors that affect our economic performance, namely limited revenue-collection capacity, the rapid growth of public spending, above all on salaries and debt service, and the impact of external shocks,” she said.
The minister also stressed that this context has aggravated the State's financing needs, with a direct impact on the quality and reach of essential public services, which is reflected negatively in social and human development indicators.
To mitigate these effects, the Mozambican Executive is implementing structural reforms in the real, fiscal and monetary sectors, under the Economic Reform and Growth Programme (PRECE), aimed at energising economic activity and restoring balance to public accounts.
For his part, Fily Sissoko assured the World Bank's continued support for the reforms under way and reaffirmed the institution's commitment to Mozambique's economic progress. “Reviewing the project portfolio with the Government is essential to ensure good governance and a more favourable business environment. Our aim is to work side by side with Mozambique to consolidate a strong macro-fiscal framework and promote inclusive and resilient economic growth,” he stressed.
The World Bank remains a strategic partner of Mozambique, with high-impact projects in key areas such as energy, infrastructure, agriculture, health and education, fundamental pillars for consolidating a sustainable economic and social base in the country.
