Once a beacon in sub-Saharan Africa, Mozambique has been hit hard by scandal and price cycles
Former president Armando Guebuza testified this week before a parliamentary inquiry into secret state borrowing of close to $2-billion, a debt scandal that has added to Mozambique's economic woes. Once the darling of investors thanks to natural gas and other resources, Mozambique is now struggling with inflation, debt and reduced growth prospects. Guebuza, who testified behind closed doors, is seen as a key figure in the scandal that dates from his 10-year term, which ended in January last year. Between 2013 and 2014, state-owned enterprises contracted massive loans from foreign creditors in a string of transactions hidden from parliament and the public. The two largest, totalling $1.4-billion, only came to light earlier this year, shocking the IMF and foreign donors into withdrawing their support. News of the two loans was the last straw for foreign donors already reeling from a revelation in 2014 that an $850-million loan had been arranged, without parliamentary consent, to buy a ...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.