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

What the report says

AllAfrica, carrying a report by Mozambique’s state news agency AIM, said President Daniel Chapo stated that his government had turned down proposals from unnamed international partners that he described as likely to raise living costs. Chapo made the remarks during an extraordinary session of the Executive Council of Nampula while on a working visit to the northern province, according to the report published on 24 July 2026.

The president said economic changes should be judged by how they affect citizens and should support sustainable growth. AIM reported that he did not identify the institutions behind the proposals, but placed his comments in the context of International Monetary Fund calls for broad public finance reforms, including tighter fiscal discipline, more efficient state spending, stronger revenue collection and reinforced financial policy controls.

The meeting also reviewed implementation of the government’s Five-Year Plan in Nampula. Chapo said the purpose was to assess provincial, district and municipal performance, identify obstacles and opportunities, and guide measures to speed development. He also called for closer scrutiny of revenue and spending patterns, saying that such analysis could help identify limits on the state’s ability to invest and inform future public policy.

During a public rally in Malema district, Chapo announced measures including a doubling of resources for the Local Economic Development Fund, intended to widen access to financing for local entrepreneurs, young people, women and small businesses. AIM also reported that the government plans to expand a public bus procurement programme to additional municipalities, including Malema, and continue investments in water supply, electrification, roads and social infrastructure.