IMF plans Mozambique visit as debt pressures deepen

Mozambique is set to host an International Monetary Fund mission in the coming months, as authorities seek support to manage growing financial pressures.

According to the Fund, the mission to Maputo will review the country’s economic situation and policy direction. It comes as discussions continue over a possible new support programme, following the early end of the previous IMF arrangement in April 2025.

The talks are expected to gain momentum during the IMF and World Bank Spring Meetings in Washington next month.

Behind the scenes, the country’s finances are under strain. Borrowing costs have climbed sharply, reflecting investor concerns about Mozambique’s ability to manage its debt.

Recent data from the finance ministry shows public debt continued to rise last year, while the government increasingly turned to its central bank for short-term funding to cover budget gaps. Economists often see this kind of borrowing as a sign that access to more stable financing is tightening.

At the same time, local banks—traditionally a key source of government funding—are approaching their limits. External financing has also weakened, with more money flowing out of the country than coming in.

Mozambique’s current challenges are tied to long-running issues. A hidden debt scandal in 2016 damaged trust with international lenders, and expected revenues from major gas projects have yet to fully materialise.

The IMF’s upcoming visit is likely to shape the next phase of engagement between the government and its international partners as it seeks to steady its economy.