The International Monetary Fund (IMF) will visit Mozambique in November to continue discussions on the country’s macroeconomic challenges and explore possible financial support, according to the Fund’s mission chief on Tuesday.
The visit comes as TotalEnergies prepares to restart work on its multibillion-dollar liquefied natural gas (LNG) project, which is expected to significantly boost Mozambique’s economic growth and fiscal revenues once gas production begins near the end of the decade.
IMF Mission Chief to Mozambique Pablo Lopez Murphy told Reuters that the visit will form part of the 2025 Article IV consultation and will assess policy priorities, the balance-of-payments outlook, and the country’s financing needs.
Don’t Miss This:
TotalEnergies Says Mozambique LNG Project Costs Have Increased By $4.5 Billion
Earlier this week, IMF Deputy Managing Director Bo Li hosted Mozambican President Daniel Chapo at the Fund’s headquarters in Washington for talks described by Lopez Murphy as “productive.”
Mozambique’s previous IMF programme concluded earlier this year after the government chose not to proceed with the remaining reviews of its Extended Credit Facility arrangement and instead requested a new programme.
In August, IMF staff said that decisive measures were needed to restore macroeconomic stability following a sharp slowdown in growth that occurred in the months after last year’s disputed election.
The IMF has since recommended front-loaded fiscal consolidation and increased exchange-rate flexibility among other policy adjustments.
Don’t Miss This:
Mozambique Embraces $6 Billion Electricity Project, Southern Africa’s Largest In 50 Years
Image Credit: CNBC Africa
