Republic of Mozambique: Selected Issues
IMF Staff Country Reports, July 12, 2024
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- Republic of Mozambique: Selected Issues
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Bibliographic details
- Published: July 12, 2024
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400285301.002
Overview and key findings
- The paper discusses the current situation and policy options related to state-owned enterprises (SOE) in Mozambique.
- SOEs play an important role in the Mozambican economy by providing much-needed utilities, and also regarding employment and investment dynamics.
- A first step is to enhance timely and regular collection of data that is easily accessible to better assess the performance of SOEs and raise awareness about associated fiscal costs and risks.
- Enhancing governance and transparency in the SOE sector remains essential to strengthen performance, oversight and accountability, aimed at containing the associated costs and risks.
- Besides the consolidated accounts, there is a need for action to regularly publish granular data on SOEs to improve transparency and accessibility.
- It is important to improve transparency in the SOEs’ procurement processes to address vulnerabilities to corruption and improve public spending efficiency.
- Undertaking a comprehensive analysis of the SOE sector is important to set a holistic strategy for prioritizing and sequencing needed reforms going forward.
Policy recommendations and priorities
- Enhance timely and regular collection of SOE data that is easily accessible.
- Regularly publish granular SOE data in addition to consolidated accounts to improve transparency and accessibility.
- Strengthen governance and accountability frameworks across the SOE sector to contain fiscal costs and risks.
- Improve transparency in SOE procurement processes to reduce corruption vulnerabilities and improve public spending efficiency.
- Conduct a comprehensive analysis of the SOE sector to design a holistic strategy for prioritizing and sequencing reforms.
Subjects and keywords (as listed)
- Subject: Arrears, Economic sectors, External debt, Fiscal risks, Public enterprises, Public financial management (PFM)
- Keywords: Arrears, Fiscal risks, policy option, procurement policy, procurement process, Public enterprises, SOE ownership policy, SOE sector, soes' operations, state-owned enterprises in Mozambique, Sub-Saharan Africa
Content in this bundle
- Republic of Mozambique: Selected Issues; IMF Country Report No. 24/220; June 24, 2024