Agencia de Informacao de Mocambique (Maputo)

Mozambique: Metical Replacing Kwacha in Morrumbala

17 July 2008


Morrumbala — Citizens in the district of Morrumbala, in the central Mozambican province of Zambezia, now have enough confidence in the Mozambican currency, the metical, to use it in their transactions, rather than the kwacha, the currency of neighbouring Malawi.

For years the Malawian kwacha has been used, not just in cross-border trade, but also in day-to-day transaction in Murrumbala. But that may be changing, judging by claims made at a rally addressed by President Armando Guebuza, who began a working visit to Zambezia on Wednesday

One of the speakers at the rally told the President that the economic situation in Morrumbala is improving significantly, thanks to the government's efforts to promote local development initiatives. "Our metical is now used much more than the Malawian kwacha", he said "This can only be explained by the seven million meticais (280,000 US dollars) allocated by the government to every district, which is enhancing social and economic life in this region".

Some other participants at the rally praised Guebuza's governance of the country, particularly the fact that he gives priority to direct contact with people. One of them, Antonio Xipamba, added praise for the local administrator. "I am also thankful for the fact that the Morrumbala administrator is following the same steps", he said. "He listens to people's concerns anywhere and he is always working at the grass roots".

Other participants stressed that life in Morrumbala has changed significantly in such a way that people are gradually forgetting about the wounds left by the 16 year war of destabilization.

Addressing the rally, Guebuza expressed satisfaction at the fact that people in Morrumbala have managed to recover from the effects of the floods on the Zambezi river at the start of this year, that killed at least 28 people and displaced thousands of others.

He praised Morrumbala as a clear example of people taking advantage of the crisis caused by the floods to improve their housing, by building new houses in brick, rather than in flimsy materials.

"We must believe that we can defeat poverty", Guebuza declared. "There are some people who think that because they were born poor they are doomed to die poor. But we have land where we can produce a lot of food for our consumption and for sale".

Guebuza also urged Morrumbala residents to be vigilant against those who promote tribalism, saying that these people are moved by personal rather than national interests.

At a meeting of the Zambezia provincial government, chaired by Guebuza on Wednesday, the Murrumbala district administrator, Virgilio Gonzaga, announced that one of the main commercial banks, the BCI, will set up a branch in the district later this year. Up until now, Morrumbala residents have had to travel hundreds of kilometres to find a bank: most banks in Zambezia are concentrated in the provincial capital, Quelimane.

Gonzaga said that he had received confirmation on Wednesday from the BCI, which is the second largest commercial bank in the country, that by December it would be operating in Morrumbala. This is part of a major drive by the BCI to expand its network into the countryside.

The Zambezia provincial governor, Carvalho Muaria, presented a report to Guebuza claiming a rise in total production in the province from 11.2 billion to 13.82 billion meticais (464 to 573 million dollars, at current exchange rates) between 2004 to 2007. Tax revenue from the province rose from 234.4 million meticais in 2004 to 312.8 million in 2007.

Yet agricultural marketing was down, from 255,611 tonnes of crops sold in 2004 to 209,040 tonnes in 2007. Nonetheless Muaria expected total agricultural production in the province this year to reach 2.88 million tonnes, rather than the 2.86 million tonnes initially planned. The great bulk of this production, however, is consumed by peasant households, rather than sold.

Zambezia's contribution to the country's exports has also fallen, from 1.37 billion meticais in 2004 to 975 million meticais in 2007.

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