Maputo to sign finance protocol
Speaking at a national seminar in Maputo for consultation on the issue, the economic assistant to the Finance Ministry, Lourenco Sambo, said SADC Finance Ministers are to meet later this month to finalise the discussions.
Two memoranda on the protocol will be signed before submitting it to the government for approval.
Sambo declared it was “unavoidable” that Mozambique should sign this document because it is part of the country’s integration into the global market.
“Mozambique should be prepared to compete with stronger countries and be aware that by adhering to the protocol it is entering into a fierce battle. There are poor countries within SADC, including Mozambique, some others are in the middle, while others are richer, and integration will mean a major effort”, he said.
He noted that Mozambique’s integration in the region is a knife that cuts both ways – on the one hand, the country can take advantage of a wider capital market, but there is also a danger that smaller Mozambican companies will be eliminated.
“The Mozambican financial sector is extremely fragile, and obviously people think that, with integration, the more powerful countries will dominate the market. But it is necessary to think of the investment component and create a favourable climate”, Sambo said.
He argued that the idea of the protocol is to expand the productive sectors of the economy and promote regional trade in order to attain economic growth and eradicate absolute poverty within SADC.
The protocol was designed in 1995 and should have been signed by the member countries in 2005, but that proved impossible, supposedly because of other pressing matters on the agenda of the Finances Ministers. ‘ Aim.