Standard Bank forecasts accelerated GDP growth for Mozambique
Standard Bank expects the growth of Mozambique's Gross Domestic Product (GDP) to accelerate from an average of 7.3 percent over the past 10 years to around eight percent, in line with the government's projections which positions Mozambique among the fastest growing economies in the region.
The Standard Bank projection was made during an economic briefing, held in Maputo.
Fáusio Mussa, chief economist at Standard Bank Mozambique, said: “The planned development of natural gas projects in the Rovuma Basin and associated infrastructure spending, together with development of the Nacala corridor for exporting coal from Moatize, will result in Mozambique’s accelerated GDP growth to above-average levels of the past 10 years.
“Continued inflows of foreign investment and increased exports point to the maintenance of a relatively stable exchange rate for the metical against the US dollar, around 31 MT a dollar, which will keep inflation in single digit, between five and six percent.”
Also speaking at the briefing, Yvette Babb, specialist economist in emerging markets at Standard Bank Group, referred to the impact of the forecast rise in interest rates in the United States on world markets and liquidity.
She indicated that emerging markets will continue to face some volatility related to this process.
Ms Babb maintained that Mozambique remains one of the best performing economies in southern Africa while, she said, unfortunately South Africa, will continue to grow below its potential, below two percent.
She said: “Recovery in European economic activity still faces risks, and there is uncertainty about the level of growth in China, which may impact the price of commodities, adversely affecting African economies.
“Following low levels in March, commodity prices are likely to start a constructive trend in coming months, which would be positive for the region.”
The Standard Bank economic briefing is an annual event for clients, offering perspectives on market trends in both the national and global economy. This year’s briefing focused on Mozambique’s accelerated growth.
5 minutes with... Janthana Kaenprakhamroy, CEO, Tapoly
Founder and CEO of award-winning insurtech firm Tapoly, Janthana Kaenprakhamroy heads up Europe’s first on-demand insurance platform for the gig economy, winning industry awards, innovating in the digital insurance space, and leading with inclusivity.
Here, Business Chief talks to Janthana about her leadership style and skills.
What do you do, in a nutshell?
I’m founder and CEO of Tapoly, a digital MGA providing a full stack of commercial lines insurance specifically for SMEs and freelancers, as well as a SaaS solution to connect insurers with their distribution partners. We build bespoke, end-to-end platforms encompassing the whole customer journey, but can also integrate our APIs within existing systems. We were proud to win Insurance Provider of the Year at the British Small Business Awards 2018 and receive silver in the Insurtech category at the Efma & Accenture Innovation in Insurance Awards 2019.
How would you describe your leadership style?
I try to be as inclusive a leader as possible. I’m committed to creating space for everyone to shine. Many of the roles at Tapoly are performed by women and I speak at industry events to encourage more people to get involved in insurance/insurtech. Similarly, I always try to maintain a growth mindset. I think it’s important to retain values to support learning and development, like reliability, working hard and punctuality.
What’s the best leadership advice you’ve received?
Build your network and seek advice. As a leader, you need smart people around you to help you grow your business. It’s not about personally being the best, but being able to find resources and get help where needed.
How do you see leadership changing in a COVID world?
I think the pandemic has proven the importance of inclusive leadership so that everyone feels supported and valued. It’s also shown the importance of being flexible as a leader. We’ve had to remain adaptable to continue delivering high levels of customer service. This flexibility has also been important when supporting employees as everyone has had individual pressures to deal with during this time. Leaders should continue to embed this flexibility within their organisations moving forward.
They say ‘from every crisis comes opportunity’, what opportunities do you see?
The past year has been challenging, but it has also proven the importance of digital transformation in insurance. When working from home was required, it was much harder for insurers to adjust who had not embedded technology within their operating processes because they did not have data stored in the cloud and it caused communication delays with concerned customers at a time when this communication should have been a priority, which ultimately impacts the level of customer satisfaction. This demonstrates the importance of what we are trying to achieve at Tapoly in driving digitalisation in insurance and making communication between insurers and distribution partners seamless.
What advice would you give to your younger self just starting out in the industry?
Start sooner, don’t be afraid to take (calculated) risks and make sure you raise enough money to get you through the initial seed stage.