The President of the Republic, Filipe Nyusi, acknowledged yesterday in Maputo that the increase in the price of energy products and cereals in the world is generating shocks to the national economy, with negative consequences for the population.

"We are fully aware of the effects of rising prices on the corrosion of the purchasing power of Mozambican families. Therefore, I consider it urgent and necessary to implement measures that alleviate the cost of living of Mozambicans," said Filipe Nyusi quoted by the newspaper Notícias.

In this context, the Head of State said that the government should immediately evaluate the measures to be taken to alleviate the cost of living. In the short term, the focus may be on implementing actions that reflect on the cost structure of imported fuels, others of a fiscal nature, and even exchange rate management that can dampen the transmission effect, when prices are translated into the national currency.

"These measures, which may contemplate subsidies to the formal passenger transport sector, are of an extraordinary nature and will have a negative impact on the balance of public accounts, as well as on the ratios relating to the macroeconomic management of foreign exchange reserves," he noted.

However, in his view, these measures will allow the mitigation of inflationary effects while the external shock persists, and mitigate the deterioration of the living conditions of Mozambicans, especially the most needy.

The Mozambican statesman was speaking at the inauguration of Mateus Magala as Minister of Transport and Communications, replacing Janfar Abdulai, and of António Saíde, appointed as vice-minister of Mineral Resources and Energy.

"We know that any measure has its implications, however, through the cadres that now take office I recommend that they join their colleagues who are already working to find solutions to mitigate the cost of living for Mozambicans," said Nyusi, stressing that the cost of living is a reality that affects Mozambique, Africa, and the rest of the world.

"The current world economic and geopolitical conjuncture poses us enormous challenges with negative impact on the national overall economy, affecting the day-to-day lives of Mozambicans. It is no mere coincidence that they take office at a peculiar moment, when the current economic conjuncture is characterized by inflationary pressure resulting from the increase in the prices of energy products and cereals that has affected every country in the world," he said.

He added that this exogenous shock to the Mozambican economy, whose consequences are difficult to decipher in the medium and long term, also stems from the conflict between Russia and Ukraine. Therefore, it demands the need to bet on men capable of facing up to these challenges.

A former lecturer at Eduardo Mondlane University, Mateus Magala has a long and prestigious professional career, having held positions both within and outside the country. As a staff member of the African Development Bank (ADB), where he held the position of vice president, he represented this institution in Tunisia, Zimbabwe, and Ivory Coast, where until last week he held the position of vice president for Human Resources and Corporate Interests.

He was Chairman of the Board of Directors (PCA) of Electricidade de Moçambique (EDM), and was responsible for the restructuring of this company. António Saíde is a renowned cadre of the Ministry of Mineral Resources and Energy, specialized in renewable energy. In the last 20 years, he has held various management and leadership positions in the institution, with emphasis on the Chairman of the Board of Directors of the National Energy Fund (FUNAE).