Page6 TheTrumpet JUNE 18 - JULY 1, 2008
Business
Mozambique: Second wave of
reforms aims to share wealth
A
fter a four year stint working on districts on the outskirts of the capital, At the opening of the ADB’s annual compared to 47.8 percent in 1997. In
a South African gold mine in where the majority of the city’s population meeting, Mozambican President Armando Maputo province it increased by 3.7
Johannesburg, Orlando Khosa, of about two million inhabitants reside. Guebuza said in his key note address that percent to 69.3 percent from 65.9 percent
33, returned home to Mozambique to Many have missed out on the the government wanted to reduce the over the same comparative period whilst
establish his own business and eight economic boom of the past decade that incidence of poverty to 43 percent by other southern provinces of Gaza and
years later it proved to be a smart has seen robust growth rates, at times as 2009, a drop of 11 percent from the 2003 Inhambane had only witnessed marginal
business decision. high as 14 percent, which has been largely figure of 54 percent. reductions.
“I used to earn about R2, 000 driven by huge capital investments that Frank Sheridan, Ireland’s ambassador In contrast, the central and northern
(US$250) a month at an underground gold has, however, created few employment to Mozambique, said of the country’s provinces enjoyed huge declines in the
mine in Carlton, but the money was not opportunities. Mozal for example, the poverty situation: “It seems to me that incidence of poverty, with the highest of
enough and I decided to come back home second largest aluminium producer in many of the poorest are struggling just to over 50 percent recorded in the central
in the year 2000,” Khosa told IRIN. Africa, cost US$2.1 billion to set up, but maintain their present standards of living, province of Sofala.
“But since I returned I have been directly employs just 1,000 people. or even falling back while the prosperous Miguel Chauke, 26, is unemployed
looking after my family working as a Five years after Mozambique’s 16 are benefiting disproportionately.” and lives in Polana Canico with his wife
dealer and supplier of goods such as TVs, year-long civil war ended in 1992, the Our main aim is to get the country to and child. “These days finding work to do
radios and cellphones and other services. I government launched its first anti-poverty produce enough food to meet domestic is hard. If the country can get more
make more money that way,” he said, initiative, the Absolute Poverty Reduction consumption. At the moment, we still foreigners to invest in the country like
outside his kiosk situated in the narrow Action Plan (PARPA), which saw the import rice and maize to augment our they did with Mozal, then we can get more
streets of the poor residential district of incidence of poverty - defined as living on local production. work,” he told IRIN.
Polana Canico, on the outskirts of the US$1 a day or less and also lacking access A September 2007 country report on But PARPA’s second phase - launched
Mozambican capital, Maputo. to health, education and other services - Mozambique, sponsored by the Brazilian in 2006 - is the pursuit of a “green
Khosa is one of the more than three- decreased from 69 percent to 54 percent Institute of Applied Economic Research revolution”, designed to open up the
quarters of Mozambique’s workforce who by 2003. (IPEA) and the United Nations country’s 128 districts to the rewards of
earn their living in the informal sector. But the good news has been tempered Development Programme (UNDP,) found commercial agriculture through the
According to the African Development by concern that while the reforms aimed at that while the incidence of poverty had provision of transport, communications
Bank’s (ADB) 2008 Economic Outlook reducing poverty through access to fallen nationally, when assessed on a infrastructures and financial services in
Report released in May at the bank’s education, establishing basic province by province basis, it had actually the rural central and northern provinces.
annual conference in Maputo, only eight infrastructure and ensuring good worsened in the country’s southern About 80 percent of the country’s 21
percent have jobs in the formal sector. governance has had an impact, the drive to provinces. million people are engaged in small-scale
About 17 percent of those of working age eradicate poverty has both slowed down The report said the incidence of farming.
are unemployed. in recent years and in some areas seen an poverty increased in the city of Maputo by
Polana Canico is one of the numerous increase. 5.8 percent to 53.6 percent in 2003
Continued on Page 11 >
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