Maputo, May 9, 2025 (Lusa) - Mozambican parliamentary opposition parties on Friday criticised the economic and social plan and state budget (PESOE) 2025, saying that it ignores sectors that reduce social inequalities and called for funds to rehabilitate the country's main road (N1).
"Urgent rehabilitation of the N1, the backbone of our economy. It doesn't make sense that the PESOE totally ignores the importance of this infrastructure that needs urgent rehabilitation," said MP for the Optimistic People for the Development of Mozambique (Podemos, the largest opposition party) Maganze Felizardo, as he put questions to the government, which is presenting the PESOE 2025 draft bill in parliament today.
The draft bill for PESOE 2025, which predicts economic growth of 2.9% this year, will be debated in plenary until Saturday, with approval guaranteed by the parliamentary majority of the Mozambique Liberation Front (Frelimo, in power).
The Mozambican government forecasts GDP growth of 2.9% for 2025 (1.9% in 2024), an average annual inflation rate of 7%, exports of goods worth US$8.431 billion (€7.379 billion) and Gross International Reserves of US$3.442 billion (€3.045 billion), equivalent to 4.7 months of covering imports of goods and services, excluding megaprojects, according to the PESOE draft bill.
As well as asking for a budget for the rehabilitation of the N1, the Mozambican National Resistance (Renamo) also criticised the PESOE presented today, saying that it ignores investments in social sectors such as education and health and clear mechanisms for reducing social inequalities.
"Unfortunately, with this PESOE, we will continue to see the plundering of our wealth for the individual benefit of the elites and the people will continue in poverty, with Mozambique being presented as one of the poorest countries (...). In infrastructure, our N1 has been forgotten," said Renamo MP Juliano Picardo.
The Democratic Movement of Mozambique (MDM) also criticised the economic and social plan, noting that it does not include funds for the rehabilitation of infrastructure destroyed by climatic events in the face of the rainy season, and also called for attention to the N1.
"This year there will be fewer classrooms, fewer teachers, fewer hospitals and health personnel, fewer vulnerable people benefiting from basic support (...). It means that this document is doomed to fail in order to respond to social demands conveyed during the popular demonstrations," said MDM MP Francisco Eliseu.
The Mozambique Liberation Front (Frelimo) praised the government's budget plan, arguing that it focuses on resolving the main concerns of Mozambicans, especially in health, education and social security.
"It includes making funds available for the economic recovery of companies affected by the post-election events and the government is reinforcing its commitment to young people, funding entrepreneurial initiatives, measures that create jobs for real and inclusive progress," said Frelimo MP Maria Marta, arguing that it is a "feasible plan that meets the reality" of Mozambicans.
State revenue for the whole year should amount to more than 385,871 million meticais (5.347 billion euros), equivalent to 25% of GDP, and total expenditure to 512,749 million meticais (€7.107 billion), corresponding to 33.2% of GDP, generating a budget deficit of 8.2%.
The document guides interventions in two "complementary strategic areas": the economic sector - including agriculture, industry, tourism, mineral resources, hydrocarbons and energy, and employment - and the social sector, which includes education, health, water supply, housing and social protection.
Mozambique plans to spend the equivalent of €2.850 billion on civil service salaries in 2025, up 1.3% year on year, but the government will limit each new hire to three departures.
According to PESOE 2025, the total cost of salaries and wages totalled 202,859 million meticais (€2.811 billion) last year and is expected to grow to 205,550 million meticais (€2.850 billion) this year, equivalent to 13.3% of the estimated GDP.
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