The International Monetary Fund said its executive board on Monday completed its first review of Mozambique’s three-year loan program, allowing for the immediate disbursement of about $59.26 million to Maputo.
The IMF said total spending on the $456 million extended lending program approved in May has been brought to about $150 million.
The IMF said Mozambique’s implementation of loan program policy requirements had been “solid” despite challenging global conditions that pushed inflation to double digits due to high food and fuel prices.
He noted the government’s fulfillment of obligations in the field of financial management and the fight against corruption.
According to the IMF, Mozambique’s real GDP growth will accelerate to 5.0% in 2023 from a forecast of 3.8% in 2022 and 2.3% in 2021, thanks to heavy investment in the liquefied natural gas project and a strong vaccination program. which led to the complete cessation of the spread of COVID-19. restrictions in July 2022.
Mozambique’s first liquefied natural gas project began production this month and is expected to improve Mozambique’s current account balance, the IMF said.
“Program performance was high, with all quantitative targets and structural benchmarks met at the end of June,” IMF Deputy Managing Director Bo Lee said in a statement.
“While the outlook remains positive, driven by major LNG projects, significant risks remain, including from adverse climate events and a volatile security situation. Weaknesses in governance and debt vulnerabilities also pose challenges,” Lee said, adding that Mozambique still needs donor support and further development of governance capacity.
