Mozambique welcomes IMF's announcement of the resumption of financial aid

Mozambique's private sector has hailed the announcement of the resumption of financial assistance from the International Monetary Fund (IMF).

On Tuesday, the Confederation of Economic Associations (CTA), Mozambique's largest employers’ organisation, noted that the development creates "a good outlook."

The International Monetary Fund (IMF) had announced on Monday that it has reached an agreement with Mozambique for the implementation of an Extended Fund Programme (EFP) until 2025, disbursing financial assistance for the first time since the hidden debt scandal.

This is the first time the IMF has funded Mozambique since the disclosure of the so-called hidden debt scandal in 2016, with only occasional financial aid following specific disasters, such as the Covid-19 pandemic or cyclones Kenneth and Idai, in 2019.

Mozambican President Filipe Nyusi has welcomed the move describing it as, a "great gain" for the southern African nation.

The instrument approved by the IMF provides for a rapid recovery of the Mozambican economy and is based on promoting good governance, combating corruption, macroeconomic stability and debt control, Nyusi said on Monday.