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Mozambique state budget deficit at U.S. 77 billion dollars

MAPUTO Mozambique (Xinhua) -- The Mozambican government announced Thursday that it has a deficit of 77 billion U.S. dollars for the state budget as the international partners continued to suspend support for the country.

According to government spokeswoman Ana Comoana, the 77-billion-dollar deficits correspond to 9.7 percent of GDP this year, compared to 10.7 percent in 2016.

“In principle, we will cover this deficit through internal credit corresponding to 2.3 percent of GDP and external donations that may come from traditional donors or partners with whom Mozambique will recover agreements following the suspension of support,” said Comoana.

For the coming 2018, the Mozambican government expects a GDP growth of 5.3 percent against 4.7 percent this year.

The spokeswoman said that efforts have been made to normalize cooperation with donors that have suspended aid. Meanwhile, the government will bet on fiscal consolidation through revenue collection and containment of public spending.

The Mozambican economy is going through a critical moment after undeclared debts of 2 billion dollars have been made public, leaving the state’s safes empty.



Mozambique, Malawi agree to upgrade Nacala Corridor

MAPUTO Mozambique (Xinhua) -- Mozambique and Malawi signed here on Friday an agreement to expand and modernize the Nacala Development Corridor.

The project includes a railway that crosses the two countries and will stimulate the operations of the economic activities, trade and transport of coal.

Speaking at the signing ceremony, Mozambique’s Minister of Foreign Affairs and Cooperation, Oldemiro Baloi, said the expansion of the Nacala Corridor will boost the development of the mining, agriculture, transport and logistics sectors in both countries and the region.

“For the Government of Mozambique, this is a valuable contribution to materializing our objectives in the chapter on the modernization and expansion of iron-port infrastructures, giving greater robustness to the national economy and better capacity to respond efficiently to the needs of access to the ocean from the inland countries, the Republic of Malawi and the Republic of Zambia,” said the foreign minister.

Malawi Minister of Transport and Public Services Jappie Mhango said upgrading the railway line will boost the region’s economy and will improve the trade of small and large entrepreneurs who are the backbone of most of the economies.

“Indeed, the development of the transport and communication sector is one of the strategic pillars of the Government of Malawi’s action, taking into account the transversality of this sector in the national economy,” said Mhango.

The Nacala Corridor leaves the province of Nampula, passes through the province of Lichinga and Tete in the north of Mozambique and leaves for Malawi.

The investment for the expansion of the Nacala Corridor is worth 2.5 billion U.S. dollars, and was financed by the Brazilian company Vale. Since 2011, the project has undergone renovations to boost the mining industry among several countries in the Southern African region.


Nine Malawians arrested for illegal mining in Mozambique

MAPUTO Mozambique(Xinhua) -- The Mozambican authorities announced here on Tuesday the arrest of nine Malawians found to be carrying out illegal mining in the National Reserve of Niassa, northern Mozambique.

According to police in that province, the so-called ‘garimpeiros’ were carrying out activities in the district of Mecula.

“The citizens detained have been researching and exploiting mineral resources within the Niassa National Reserve, and it is the second time they have been found and expelled, but some of them (six) returned,” said Miguel Bilhardo from local police.

He added that the citizens are in illegal situation, and they will be repatriated within days, due to the lack of space in jails of that province.

“In addition to the threat to the environment, what is most worrying us as authorities is the fact that the illegal mining activities are done in places of high risk of landslide,” said Bilhardo.

The illegal miners have been searching for gold, green tourmaline, and copper, using sieves and sacks to extract the minerals.



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