Mozambique joins the list of countries that received money from the International Monetary Fund (IMF) to fight the coronavirus pandemic. The institution approved on April 24 the disbursement of SDR227.2 million (about $309 million) under the ECF arrangement with the country to help meet the urgent balance of payments and fiscal needs.

Mozambique is still struggling to recover from the Idai and Keneth cyclones that in 2019 put millions of citizens under food insecurity and famine. Sectors most affected are services, transports, agriculture, manufacturing, communications, and mines.

According to Tao Zhang, IMF’s Deputy MD, “given Mozambique’s limited fiscal space and high public debt, additional external support, preferably in the form of grants and highly concessional loans, is also urgently required to meet the country’s elevated financing needs and ease the financial burden of the pandemic.”

IMF projects Mozambique’s GDP Growth at 2.2% in 2020, roughly the same as in 2019. Public debt is seen at 125.4% in 2020, up from 109% in 2019.

André Chadrak