Mozambique: Government has rejected proposals aimed at increasing the cost of living – Chapo

According to the President, who was speaking at an extraordinary session of the Executive Council of Nampula, as part of his working visit to that Northern Province, economic reforms must protect citizens and create conditions for sustainable growth. Although he did not name the specific institutions involved, the President’s stance comes against the backdrop of the International Monetary Fund (IMF) advocating for sweeping reforms in the management of public finances. These reforms would be centered on strengthening fiscal discipline, rationalizing state expenditure, improving revenue collection, and reinforcing financial authority policies.

Chapo believes that any reform must be evaluated based on its impact on the population’s lives. “The government remains open to dialogue with international partners but assured that it will not accept measures likely to increase the economic hardships faced by citizens”, he said. During the meeting, a report on the implementation of the government’s Five-Year Plan in the province was presented.

Chapo explained that the session’s objective was to evaluate the performance of the province, districts, and municipalities, identifying constraints and opportunities “to accelerate development.” Chapo also called for a deeper analysis of public finance trends, believing that understanding revenue and expenditure patterns would allow for a more precise identification of the factors limiting the State’s investment capacity. During his visit to Malema district, Chapo also attended a public rally, where he announced new measures aimed at addressing the population’s main concerns. Among the announced decisions, a key highlight was the strengthening of the Local Economic Development Fund (FDEL).

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“Many young people, women, and small business owners have the capacity to engage in economic activities but remain constrained by a lack of access to financing. In addition to bolstering the FDEL, the President announced the expansion of the public bus procurement program to new municipalities, including Malema. “The government also intends to continue investments in water supply, electrification, road rehabilitation, and the construction of social infrastructure”, he said.

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