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Subject

Mozambican fiscal and security threats

Significance

President Filipe Nyusi on February 8 announced a deal with Afonso Dhlakama, leader of opposition movement RENAMO, on provincial decentralisation. This came a week after the attorney-general confirmed that a legal complaint had been passed to the audit court for potential prosecutions relating to a long-running 2-billion-dollar debt scandal. While the ruling FRELIMO has trumpeted these developments as evidence of a commitment to peace and fiscal transparency, elite politicking risks undermining both, while increasing insecurity is threatening several pending gas deals.

Impacts

Given Mozambique's demographic projections, present economic growth trends are unlikely to substantially reduce widespread poverty.

Controversy will persist over the management of local elections in Nampula amid allegations of fraud and malpractice.

The FRELIMO-RENAMO provincial deal could undermine democracy by making it harder for third-party or independent candidates to become mayors.

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