We have confidence in the ongoing reforms in the Mozambican economy
Although the Mozambican economy has faced some difficulties in recent times, which caused a slight slowdown in its growth rate, Standard Bank expects an encouraging scenario in the near future as the country has great potential to boost accelerated growth of the economy.
For Standard Bank, weak donor support, fiscal challenges, poor performance of parastatal companies, slow monetary flexibility and low corporate confidence will likely drag the economy into its third year of low economic growth in 2018, where GDP is expected to accelerate by 2019 as investment in natural gas projects accelerates.
Speaking on the sidelines of the II Financial Times summit that was held in Mozambique under the theme “Reducing investment risk through good business practices”, Chuma Nwokocha, Standard Bank's Managing Director, said that investment in resources such as coal, natural gas, among others, have the potential to accelerate GDP growth and support macroeconomic stability, keeping the exchange rate stable and inflation relatively low and stable.
According to Standard Bank's Managing Director, the country has great potential to resume to the fast pace of economic growth, following a few years of slight slowdown.
“There are some challenges that we have to overcome in the coming months and the Government is paying attention to this, so that the ongoing reforms can have the desired positive effect, namely consolidation of peace and peacekeeping, to continue efforts to restore the international community confidence, after the debt crisis, restore IMF-funded programs, restructure sovereign debt to a sustainable level, accelerate fiscal consolidation efforts to reduce risks, restore macroeconomic stability, accelerate investment in natural gas projects, among others”, he said.