Mozambique is preparing to host a mission from the International Monetary Fund in the coming months, as authorities look for support to manage rising fiscal and debt pressures. The visit to Maputo will assess the country’s economic outlook and policy direction, and could pave the way for a new IMF supported program. The talks follow the early conclusion of Mozambique’s previous IMF arrangement in April 2025 and are expected to advance further during the upcoming IMF–World Bank Spring Meetings in Washington.
Mozambique’s public finances have come under increasing strain, with borrowing costs rising sharply amid investor concerns about debt sustainability. Government data shows public debt continued to grow last year, while authorities relied more heavily on the central bank for short-term financing, often seen by economists as a sign of tightening access to external funding. Domestic financing options are also narrowing, as local banks approach lending limits. At the same time, external inflows have weakened, with capital outflows exceeding inflows in recent months.
The country’s financial challenges are rooted in longstanding structural issues, including the fallout from the 2016 hidden debt scandal, which eroded trust with international lenders. Expected revenues from large offshore gas projects have also been slower than anticipated, delaying a key source of fiscal relief. The IMF mission is expected to play a critical role in shaping Mozambique’s next steps as it seeks to restore investor confidence, stabilize public finances, and secure sustainable economic support.
