Mozambique: Government Has Rejected Proposals Aimed At Increasing the Cost of Living - Chapo

AllAfrica English (current) En Français Toggle navigation My Account Toggle navigation AllAfrica My Account English (current) En Français Mozambique: Government Has Rejected Proposals Aimed At Increasing the Cost of Living - Chapo 24 July 2026 Agencia de Informacao de Mocambique (Maputo) By Alberto Massango Maputo — Mozambican President Daniel Chapo claims that his government has rejected proposals from international partners that aimed at increasing the cost of living in the country. According to the President, who was speaking at an extraordinary session of the Executive Council of Nampula, as part of his working visit to that Northern Province, economic reforms must protect citizens and create conditions for sustainable growth. Although he did not name the specific institutions involved, the President's stance comes against the backdrop of the International Monetary Fund (IMF) advocating for sweeping reforms in the management of public finances. These reforms would be centered on strengthening fiscal discipline, rationalizing state expenditure, improving revenue collection, and reinforcing financial authority policies. Chapo believes that any reform must be evaluated based on its impact on the population's lives. "The government remains open to dialogue with international partners but assured that it will not accept measures likely to increase the economic hardships faced by citizens", he said. Keep up with the latest headlines on WhatsApp | LinkedIn During the meeting, a report on the implementation of the government's Five-Year Plan in the province was presented. Chapo explained that the session's objective was to evaluate the performance of the province, districts, and municipalities, identifying constraints and opportunities "to accelerate development." Chapo also called for a deeper analysis of public finance trends, believing that understanding revenue and expenditure patterns would allow for a more precise identification of the factors limiting the State's investment capacity. He explained that this assessment should serve as a basis for future public policy decisions and contribute to improving public administration performance. During his visit to Malema district, Chapo also attended a public rally, where he announced new measures aimed at addressing the population's main concerns. Among the announced decisions, a key highlight was the strengthening of the Local Economic Development Fund (FDEL). "The government has decided to double the resources allocated to the FDEL to enable a larger number of citizens to access financing. The fund is a strategic tool for promoting local entrepreneurship, creating income-generating opportunities, and stimulating the growth of small businesses", he said. "Many young people, women, and small business owners have the capacity to engage in economic activities but remain constrained by a lack of access to financing. By increasing FDEL resources, the government aims to fund projects that were previously excluded due to insufficient funds, thereby expanding the number of beneficiaries across the province", he added. Close Sign up for free AllAfrica Newsletters Get the latest in African news delivered straight to your inbox Top HeadlinesMozambiqueBusinessGovernance Submit By submitting above, you agree to our privacy policy. Success! Almost finished...We need to confirm your email address.To complete the process, please follow the instructions in the email we just sent you. Error! Error! There was a problem processing your submission. Please try again later. In addition to bolstering the FDEL, the President announced the expansion of the public bus procurement program to new municipalities, including Malema. "The government also intends to continue investments in water supply, electrification, road rehabilitation, and the construction of social infrastructure", he said. Read the original article on AIM. Tagged: Mozambique Business Southern Africa Governance Copyright © 2026 Agencia de Informacao de Mocambique. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here. AllAfrica publishes around 600 reports a day from more than 90 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct. 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