Debts leave Mozambique staring at economic crisis
Mozambique is on the verge of debt crisis that is having serious repercussions on the economy.
Barely a decade after international creditors wrote off over US$6 billion of loans to the country as part of the Heavily Indebted Poor Countries (HIPC) initiative, the country is showing alarming signs of plunging back into unserviceable debt.
The government has disclosed previously hidden, government-guaranteed loans exceeding $1-billion (R14.8-billion) to state defence and security companies.
As a result, the International Monetary Fund (IMF), which had been working with Mozambique to help it repay a previously disclosed debt of $850-million, suspended the second installment of a $282-million loan to the country.
Fourteen others donors and financial agencies who used to give direct support to the Mozambican state budget have also interrupted disbursements until further notice.
A decrease in foreign aid has worsened a large drop in the world market price of some of Mozambique’s key exports and of foreign direct investment.
The result has been a severe shortage of foreign currency, which has seen the Meticals currency lose double its worth to the South African Rand to 4M/R.
The Institute for Security Studies (ISS) said since most food was imported from South Africa, this will increase food inflation.
The security situation is not rosy either with the Mozambican National Resistance rebels embarking on a campaign of terror in the south-north highway between Mozambique and South Africa.
Before its current problems, Mozambique was earmarked for an economic boom following natural gas discoveries.
Comments
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
Multotec, recognised industry leaders in metallurgy and process engineering help mining houses across the world process minerals more efficiently,...
VISIT SHOWROOM
SmartMine IoT has been developed with the mining industry in mind, to provides our customers with powerful business intelligence and data modelling...
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
