International Development (USAID) corruption assessment report, the scale and scope of corruption in Mozambique are cause for alarm affecting all echelons of society, ranging from instances of petty administrative corruption at police checkpoints, health institutions, schools and government offices to the pilfer- ing of national coffers and nepotism at the state level. Despite a government drive to eradicate graft, it remains endemic with Transparency International s ---- Corruption Perceptions Index report ranking Mozambique ---rd out of --- countries. ...Despite a government drive to eradicate graft, it remains endemic with Transparency International s ---- Corruption Perceptions Index report ranking Mozambique ---rd out of --- countries. Furthermore, in Sub-Saharan Africa, one of the world s most cor- rupt regions, the country was ranked a lowly -- out of --. High levels of corruption pose a threat to foreign direct investment inflows, as well as grants from international governments, both of which are important sources of financing to Mozambique s growth prospects. Poverty: BMI estimates that Mozambique had a GDP per capita of US$--- in ----. ...We do not believe that the party s flagging fortunes will be re- versed with Dhlakama at the helm, but if were to be a change of leadership, fresh blood at the head of the party could reinvigor- ate it into once again providing credible opposition to Frelimo. The possibility of Simango, who was expelled from Renamo by Dhlakama in ----, returning to head the party or at least forming an alliance between his MDM party and Renamo in a post-Dhlakama world could provide a healthy challenge to
...Domestics - Frelimo candidate in prime seat The election of Felipe Nyussi to be the ruling party s candidate at the October election means that there is likely to be a continuation of outgoing President Armando Guebuza s policies over the next five years. Despite the fact this might put some dissatisfied voters off voting for Frelimo, we believe that Nyussi and the party will still emerge victorious. ...Prudent macroeconomic and fiscal management and an investment-orientated president determined to reduce the country s dire level of poverty, Armando Guebuza, will, in our opinion, help sustain ongoing robust average annual GDP growth at around --.- over the coming decade. table: lonG-terM MacroeconoMic forecasts -- chapter -: Business environment -- sWot analysis -- BMi Business environment risk ratings -- Business environment outlook -- institutions -- table: bMi business and oPeration risK ratinGs -- table: bMi leGal fraMeworK ratinG -- table: labour force Quality -- infrastructure -- table: africa � annual fdi inflows -- Market orientation -- table: trade and investMent ratinGs -- operational risk -- table: toP exPort destinations, ---------, -- chapter -: BMi Global assumptions -- Global outlook -- Growth increasingly polarised table: Global -- table: develoPed states, real GdP GrowtH, -- table: bMi versus blooMberG consensus real GdP GrowtH forecasts, -- table: eMerGinG MarKets, real GdP GrowtH, -- - Business Monitor International Ltd www MozaMbique q- ---- core Views In the absence of new data, the trajectory of Mozambique s foreign exchange reserves suggests that the external accounts remain in a healthy state. We retain our view that Mozambique will continue to post large current account deficits until ---- when natural gas production is set to begin in earnest. ...The authorities are likely hike rates if the metical weakens significantly against the South African rand or cut rates if economic growth comes in lower than expected.
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