MEFMI / TDB support Mozambique on financial negotiation

A country’s negotiating capacity has direct bearing on the terms, conditions and cost of borrowing. Through adequate preparation and appropriate negotiation skills and strategies, governments can positively influence the outcome of financial negotiations. To achieve this, governments need to put in place negotiation teams that have the necessary competencies. Research shows that most people can significantly improve their negotiation skills through training, preparation, and practice.

However, governments in most developing countries do not have an appropriate mix of skills to undertake effective negotiations. The Mozambique Ministry of Economy and Finance requested MEFMI its officials on Financial Negotiation Skills and Techniques to close this gap. In response, MEFMI collaborated with the Trade and Development Bank (TDB) to conduct a virtual workshop during the period 18 to 22 October 2021.

The workshop enhanced participants’ knowledge of development financing sources, analysis of loan agreements and the theory of financial negotiation. The workshop also imparted practical skills for effective financial negotiation, including key considerations for preparation and assembling a strong negotiation team, key success factors, and common pitfalls during negotiation, and negotiation of alternative financing instruments including traditional, emerging, and commercial loans. The training also covered debt renegotiation with a focus on the Paris Club, London Club, Debt Service Suspension Initiative and the Common Framework.

A total of 16 officials (of which 13 were female and 3 were male), drawn from the Public Debt Management Department in the Ministry of Economy and Finance participated in the training. It is envisaged that the knowledge they gained from this training would help them negotiate new financing on favourable terms to the government.

The course was facilitated by four (4) resource persons, namely Ms Yvonne Quansah, a debt management expert from Ministry of Finance Ghana; Mr Juan Carlos Vilanova, an International Debt Management Expert; Dr Felister Kivisi from the TDB and a MEFMI Graduate Fellow; and Ms. Josephine Tito (MEFMI).

Prepared by Josephine Tito