Mozambique: IMF Imposes Wage Cuts, Accepts ‘Weak Non-Mining Growth’ So Mozambique Remains Just Mineral Exporter

The IMF has imposed a major wage freeze, which implies wage cuts over the next three years. In effect, government has agreed that its total wage bill of $3.3bn this year must fall to $3.0 bn next year, and $2.9 bn in 2027. Not only does that mean no increases for current staff, but if more nurses and teachers are hired, everyone else’s wage must be reduced. Mozambique’s IMF Resident Representative Alexis Meyer Cirkel ends his term in August, and he has left a massive time bomb for the new…