Mozambique, the African country’s already fragile economy is heavily affected by natural disasters

ROME – Over the past 20 years – we learn from Africa Affari, the monthly magazine on the continent of the future, directed by Massimo Zaurrini – natural disasters have cost Mozambique 1.3% of its gross domestic product (GDP), according to a report by the state news agency Aim which specifies that the most devastating natural shocks for the The economy has been cyclones, floods and severe droughts, as well as the most recent health crisis, the Covid-19 pandemic. “Mozambique is one of the countries most affected by natural disasters which, according to the most recent estimates, have caused losses estimated at 1.3% of GDP in the last 20 years”, reads the report, which quotes the words spoken by the deputy minister of Economy and Finance Carla Louveira during an economic forum on the prospects for investment and financing of the economy.

Tensions at Cape Delgado. The government estimates that in 2020 alone, Covid-19 negatively affected economic growth by 3.6%, reducing the employment rate by 1.9%, the report reads. The armed insurrection in the Cabo Delgado province in the north of the country, which exerted a heavy tax burden, also contributed to the contraction of the economy in the reporting period. According to the report, the insurgency ended up delaying the normal flow of liquefied natural gas projects and affected the trading, hospitality and mining sectors.

The IMF program. Despite the adversity, the government expects an expansion of public investment for the coming years, influenced by the easing of restrictions on external financing with a new program of the International Monetary Fund. Since 2022, there has been a notable positive evolution, with the country recording a real GDP growth rate of 4.1%, above the average level for the region of Southern African Development Community (Sadc), which was 3.8%, reflecting the dynamics and recovery of the economy, Louveira said. The deputy minister stated that the economic prospects for the medium term are positive, with an average growth rate of around 6.4% per year, thanks to the consolidation of the economic recovery strongly influenced by the implementation of gas projects.