Africa-Press – Mozambique. The International Monetary Fund (IMF) said on Tuesday that the 20 measures to stimulate the economy announced in response to the global situation by Mozambican head of state Filipe Nyusi, will help economic growth.
“Obviously we need to analyse the details, but, in general, these measures tend to help economic growth,” IMF representative in Mozambique, Alexis Meyer-Cirkel, told the media moments after Filipe Nyusi’s address to the nation in Maputo.
Alexis Meyer-Cirkel also highlighted the “continuous growth of the Mozambican economy”, despite the adverse context resulting from the current situation marked by global inflation as a result of the impact of the Russia-Ukraine conflict.
“The global situation has been happening, and the Mozambican economy is showing continued growth. In the first quarter, it stood at 4.1%, and at 4.6% in the second. It is a recovery trend, and these measures will help,” the IMF representative stressed.
The Mozambican president yesterday announced 20 measures to stimulate the economy, including a 22% reduction in Corporate Income Tax (IRPC) and a one percent reduction in Value Added Tax (VAT).
The 20 measures are part of the PAE – Economic Acceleration Stimulus Package, which aims to respond to the country’s growth needs, the negative impact of the Russia-Ukraine war, armed violence in Cabo Delgado province and natural disasters.
The measures announced lower the IRPC in agriculture, aquaculture and public transport from 32% to 10%, and VAT on agriculture and renewable energies from 17% to 16%.
The Mozambican head of state also signalled the introduction of tax incentives for new investments over the next three years, but did not mention the rates of these incentives.
The PAE package increases the share of revenues from natural resources transferred to the provinces where they are extracted from 2.5% to 10%.
The package also foresees the establishment of a mutual loan guarantee fund worth US$250 million (€244.4 million) to help banks make credit available in the economy at more affordable interest rates.
The PAE introduces the obligation to mix imported fuels with biofuels, “aiming to generate more jobs and induce more private investment in the agricultural production value chain”.
President Nyusi also announced a general review of entry visas to the country, with exemption for citizens of countries with low immigration risk, and the granting of investment visas of longer duration to foreign citizens who invest in Mozambique.
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