IMF board approves $456m programme for Mozambique

The International Monetary Fund's (IMF) executive board on Monday approved a three-year, $456m (R7.33bn) extended credit facility arrangement for Mozambique, with about $91m (R1.46bn) available for immediate disbursement, the Fund said.

The facility is the nation's first programme since the global lender suspended support six years ago.

The IMF said the three-year arrangement will help support economic recovery and policies to reduce public debt and financing vulnerabilities, while creating space for public investments in human capital, climate adaptation and infrastructure.

The Fund said the programme will support a reform agenda centred on establishing a sovereign wealth fund to manage the country's liquefied natural gas wealth, mobilising tax revenue and strengthening public finances.

"Mozambique has managed the Covid-19 pandemic relatively well, maintaining macroeconomic stability and reform momentum even as the country has weathered a series of shocks, culminating with the effects of the war in Ukraine," IMF deputy managing director Bo Li said in a statement.

"With policy space now limited, sustaining the economic recovery under way and tackling debt vulnerabilities are priorities."

Reuters