In the context of covid-19, where fighting the pandemic is the priority for Mozambique alongside the armed conflict in Cabo Delgado, the United Nations (UN) suggests structural reforms in the country in order to accelerate the economic growth of 3.8% forecast for this year.
According to an economist from the UN Department for Economic and Social Affairs (UNDESA), the Mozambican economy is growing, however, in a fragile way and "excessively concentrated in the extractive sector". In this understanding, Helena Afonso, warns of the need to implement "in the medium term, structural reforms in infrastructure to improve growth and sustain economic recovery.
For the specialist in Lusophone African economies, although the restrictions due to the pandemic and the crisis in Cabo Delgado are blocking Mozambique's economic progress, the country itself has been able to get around this period by exporting raw materials.
However, other difficult barriers for the country, according to economist Helena Afonso, are "relatively strong inflationary pressures due to the price of imported raw materials, such as fuel, disruptions in supply chains."
The country is expected to have grown by 2.1% in 2021 and UNDESA forecasts an acceleration to 3.8% this year, "on the back of increased natural gas production, coal and aluminum exports, and infrastructure projects in mining and energy."
The official was speaking following the release of this year's World Economic Outlook and Situation report on Thursday.