To win the approval from IMF for a $456 mn Extended Credit Facility, the government of Mozambique in May, had promised big wage and staff cuts. Accordingly, the total civil service wage bill is to be cut by 17% by 2026.
To win the approval from IMF for a $456 mn Extended Credit Facility, the government of Mozambique in May had promised big wage and staff cuts. Accordingly, the total civil service wage bill is to be cut by 17% by 2026. The move will involve a cut of $425 mn per year from a peak in 2023. The government plans to reduce the staff by one-third except in education, health, justice, and agriculture. The Mozambique government has promised to be more transparent and also cut down credit to state companies.
Public Probity Law is also to be reformed including redefining the term conflicts of interest, requiring new public servants to submit declarations of financial interests when they are hired, and establishing public procedures for reporting conflicts of interest. However, IMF has allowed declarations of assets and interests to remain secret. In the management of Mozambique’s natural resources, the government has promised to reduce the scope for corruption and conflicts of interest.
Also read;
https://trendsnafrica.com/mozambique-may-get-bailout-package-from-imf/
https://trendsnafrica.com/mozambique-to-get-a-grant-of-us-300-million-from-world-bank/
The government has also made some more promises to IMF that include improving tax collection, paying its bills on time, and reducing the number of VAT exemptions. The government has announced that VAT will be cut from 17% to 16%.
