World Bank pledges $6 billion to Mozambique over five years

The World Bank announced Monday it aims to provide Mozambique with $6 billion in mostly concessional financing over the next five years to support public investment projects, as the Southern African nation grapples with strained public finances and recent IMF warnings over worsening debt dynamics.

"We have a balance sheet of around $3 billion on the bank side, and we're hoping to mobilise another $3 billion," said Fily Sissoko, World Bank division director for Mozambique.

The financing is "very concessional" and primarily grants, aimed at supporting the government's development strategy.

An additional $4 billion in private sector funding is also being targeted.

Economic recovery focus

Mozambique's Finance Minister Carla Louveira said the partnership framework aims "to ensure macro-fiscal consolidation, with a view to sustaining economic recovery."

While optimism surrounds the resumption of TotalEnergies' major LNG project, the IMF has highlighted challenges including debt-service delays and persistent fiscal deficits.

The country also faces recurring climate shocks, with cyclones and floods exacerbated by climate change.