Tue. May 28th, 2024

The World Bank (WB), through the International Development Association (IDA), is the largest creditor of Mozambique’s external debt, holding 29% of the total of more than 10.2 billion dollars (644.6 billion meticals) contracted externally.

According to the 2023 public debt report drawn up by the Ministry of Economy and Finance, after the WB comes China with 15 per cent of the debt, the International Monetary Fund (IMF) with 10 per cent and Portugal and Japan, both with the equivalent of 4 per cent.

“After a notable contraction of 3.2 per cent in 2022, the nominal ‘stock’ of the government’s external debt allowed a 2.4 per cent increase throughout 2023, caused by disbursements from the IMF and Japan. It appears to be maintaining a stabilisation trend, not least because the stock has not returned to the comparatively high levels of 2021,” the report clarifies.

The document released by Lusa recalls that in 2021, the country’s total foreign debt totalled more than 10.3 billion dollars (656.7 billion meticals), which fell the following year to 10 billion dollars (632 million meticals), accelerating again (2.4%) in 2023.

The report also points out that, in terms of external debt, Mozambique has issued “MOZAM 2032” Eurobonds, worth 900 million dollars (56.8 billion meticals), equivalent in this case to 9 per cent of the total.

“The movement of the external ‘stock’ in 2023 followed a dynamic consistent with an already typical pattern, in which multilateral debt has generated positive net flows (an increase in the ‘stock’), while bilateral debt has generated negative net flows,” he adds.

Last week, the president of the World Bank, Ajay Banga, emphasised Mozambican President’ s role as the base of the electricity market in southern Africa, and promised new partnerships to boost the national energy sector.

Speaking to journalists after a meeting in Washington, United States of America (USA), with Mozambican President Filipe Nyusi, he emphasised that Mozambican President has not only improved access to electricity domestically, but is also tending to become a base for the energy market in the region, which is an excellent step towards development.

Banga clarified that there are still many actions that the government and the private sector can do together, so that the gains are maximised and benefit everyone.

In 2023, the WB approved a credit of 300 million dollars for “Mais Oportunidades”, a project for access to finance and economic opportunities in Mozambique financed by the group’s International Development Association.

According to information from the world organisation, “the project is expected to help create more than 26,000 new jobs over six years”, by 2029.

By Joy

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