Mozambique shaken by economic crisis

The country is being hit by falling commodity prices and higher interest rates after the IMF and World Bank cut financial aid to the country.

Photo by: AFP
Photo by: AFP

The International Monetary Fund cut financial aid to Mozambique after the country was classified as debt-distressed.

Mozambique is trying to cope with its worst economic crisis since the civil war ended in 1992.

The International Monetary Fund (IMF) and World Bank cut financial aid to the country in April, 2016 because of an undeclared government debt of more than two billion US dollars.

Before the crisis, Mozambique was one of the world's fastest-growing economies, with oil and gas discoveries buoying its prospects and investment pouring in.

But now, it's being hit by falling commodity prices and higher interest rates.

According to World Bank predictions, Mozambique could recover from the current economic crisis sometime between 2018 and 2021, depending on levels of foreign direct investment.

TRT World's Fidelis Mbah has this story from the capital, Maputo.

Source: 
TRTWorld and agencies