This Friday, the World Bank (WB) warned Mozambique to create jobs for its rapidly growing population, deeming it an “urgent challenge” for the country.
“It is estimated that more than half a million people enter the labor market in Mozambique each year. Therefore, creating more and better jobs is an urgent challenge for the country,” said Fiseha Haile, World Bank Senior Country Economist.
The organization launched an update to the Economic Outlook Bulletin in Maputo, which notes that there is great potential for job creation in the service sector.
According to the World Bank, Mozambique’s “strong growth performance in recent decades has helped reduce the country’s poverty”, but “growth has not been inclusive enough”.
At stake are “heavy reliance” on extractive industries (with “limited links” to the economy at large) and “low productivity in the agricultural sector, the main source of livelihood for the poorest,” the organization stressed.
On the positive side, it highlights the package of measures to boost economic growth announced by the government of Mozambique in August 2022.
In the same context, BM considered that “reforms are needed to strengthen the role of the private sector and increase access to finance by reducing the cost of bank credit, as well as providing loan guarantees to small companies.”
In a document published in Maputo, the organization predicts that Mozambique’s economy will grow by 6% this year – in January it published a forecast indicating 5%.
Author: Portuguese
Source: CM Jornal
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