The recent announcement of financial assistance from the International Monetary Fund (IMF) is considered a "positive sign" by the Confederation of Mozambican Economic Associations - CTA.

"For us this is a positive sign and good outlook for the financing of Mozambique's economy, including the strengthening of international reserves," said CTA Vice President Prakash Prehlad.

In CTA's eyes, the new financial assistance program will promote sustainable and inclusive growth and long-term macroeconomic stability.

Despite considering that the $470 million that the Fund will inject into the state budget may bring back investor confidence, the CTA recognizes that there are still challenges to be addressed "namely the security component, Democratic Rule of Law, and enforcement of the law and legality, which will help minimize corruption."

Another major factor, he continued, is the completion of the Hidden Debts trial.

On Monday, the President of the Republic, Filipe Nyusi, called the resumption of IMF financial assistance to the country a "great gain". The IMF support has been suspended since the discovery of the Hidden Debts.