Strong economic growth in Mozambique is supported by major investments in the coal mining and natural gas sectors but stricter control over state-run firms is necessary, the International Monetary Fund said on Thursday.
“Mozambique’s continued strong growth performance and low inflation are commendable … but more needs to be done to improve public financial management, including by stronger controls over state-owned enterprises,” the IMF said in a statement.
The southern African country’s economy grew 7.5 percent in 2014 and the government said in April it expected GDP to remain at that level in 2015, driven mainly by strong performances in the electricity and gas sectors.
Mozambique is in the process of offering over a dozen exploration blocks in its northern region, where U.S. oil major Anadarko Petroleum and Italy’s Eni are already developing multi-billion dollar natural gas projects.
The IMF said new mining and hydrocarbon legislation, on the verge of being passed, would attract further investment in the former Portuguese colony which celebrated 40 years of independence last month.