(2015-09-17) Julio Revilla, the chief economist of the World Bank in Mozambique, argues that investment in the Mozambican Tuna Company should be made at the expense of private businesses because EMATUM does not benefit a significant portion of the population. Revilla says that the government would do better to invest the money in roads or the agricultural sector, something which, in contrast, would largely benefit many of the disadvantaged in Mozambique.
“Mozambique must pay the debt, because it was Mozambique who contracted the EMATUM debt, but job creation will be minimal or non-existent,” the economist said.
Revilla was speaking at the Scientific Journeys at the Eduardo Mondlane University Faculty of Economics, an event attended by about a hundred students and teachers.
He was speaking about the challenges posed by the process of implementing inclusive growth at a time when huge mineral reserves are being discovered in Mozambique.
One of the critical issues, Revilla said, is the need to improve the use of public funds, citing EMATUM and the Maputo- Katembe bridge as examples of projects that will benefit few.
“The government got very excited about a certain project, but the project does not have the requisite profitability and the government is confronted with the problem of the debt, which has left it with insufficient resources to invest in other economic sectors,” said Revilla.
The EMATUM case reflects a political decision which ignored the job creation aspect, he said, adding that “investing in projects such as EMATUM and the Maputo-Katembe bridge means reducing the government’s capacity to invest in areas in dire need of urgent attention.”
Source: O País
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