Luanda - Angola welcomed Mozambique's position in Geneva (Switzerland) of continuing to support a multilateral trade system based on the rules of the World Trade Organization (WTO).
This view was expressed by Ambassador Margarida Izata, Angola's permanent representative to the United Nations and other International Organizations in Geneva, Switzerland.
The Angolan diplomat made the statement during the session of the WTO's Trade Policy Review Body (RPC) dedicated to the fourth review of Mozambique's trade policy, which is taking place at the international organization’s headquarters in Geneva from 1 to 3 July.
On the occasion, Margarida Izata said Angola has agreed with Mozambique in supporting the principles of WTO decision-making by consensus and widening the space for developing and least developed countries.
The diplomat stressed that although Mozambique's exports to the rest of the Southern African Development Community (SADC) are an essential source of economic diversification, more than two thirds are still destined to South Africa.
The latter also continues to be the main supplier of goods to Mozambique, followed by the European Union (EU), China and Singapore, Izata said.
Izata said in terms of international trade, Mozambique has seen a modest recovery in commercial opportunities, partly due to its position as a regional gateway to international markets.
On the other hand, the Angolan diplomat recognized that Mozambique continues to attract significant foreign direct investment, albeit mainly driven by important projects in the extractive industry, especially natural gas and coal.
In this context, Izata said that agriculture remains dominant in the Mozambican economy, providing livelihoods for around 80 percent of the population, as in many less developed countries.
The Mozambican government generally estimates that more than 70% of the country's economic agents operate in the informal sector, totally or partially, contributing little to the organized economy and tax revenues.
Angola's permanent representative to the United Nations and other International Organizations in Geneva thanked the Mozambican government and the WTO Secretariat for the reports presented, which comprehensively analyzed Mozambique's economic and trade trends between 2017 and 2023.
The diplomat lamented the negative set of external and internal factors that have damaged the Mozambican economy in the period under review, particularly the negative impact of the Covid-19 pandemic.
Among the factors, she also mentioned the terrorist insurgency in the north of the country, a series of natural disasters, the huge impact of international inflation and unfulfilled promises of budget support from donors.
Izata acknowledged that, despite this, Mozambique has managed to maintain macroeconomic stability and reform momentum, which enabled it to launch an important administrative decentralization process, namely the Economic Acceleration Package (PAE) and the new Private Investment Law in 2023.
These aspects, the diplomat added, made it possible to approve investment projects and strengthen various provisions, including property rights, expropriation, investor obligations and dispute resolution.
"Mozambique, as we all know, is, due to its incomparable beauty and generous natural resources, a promised land of Africa. Mozambique's deep-water coastal ports and adjacent transport corridors are vital structures for international trade between East and West, the Atlantic and the Indo-Pacific regions," the Angolan diplomat said.
Margarida Izata also noted that the country also has extensive agricultural land, significant water resources and rich underground deposits, including the largest natural gas reserves in East Africa.
"It is indeed a rich country with a marvelous young and hard-working population. Mozambique needs more support and assistance and, like the other least developed countries, fairer and more equitable integration into the world's multilateral trading system," the diplomat said. ADR/IZ/DAN/AMP
