Maputo, 14 Jun – The International Monetary Fund (IMF) on Friday announced it has concluded the assessment of Mozambique’s request for a fund-supported arrangement, at a moment when “it is gradually recovering from a contraction.”
According to Pablo Murphy, head of IMF mission that visited the country from June 8 to 12, Mozambique is facing a “challenging economic situation. The IMF team held initial discussions on the policies needed to restore macroeconomic stability and debt sustainability.”
“The country is facing a challenging economic situation amid an increasingly difficult global environment. Economic activity is gradually recovering from a contraction in 2025, but growth remains subdued. Inflation has risen recently, although from moderate levels. Fiscal imbalances narrowed in 2025 amid tight financing conditions, but fiscal and debt vulnerabilities persist”, reads a statement.
Murphy explained IMF objective was to review recent economic developments, discuss the authorities’ plans to restore fiscal and debt sustainability, “and explore how the fund can best support Mozambique going forward.”
“The war in the Middle East, which has driven up fuel and fertilizer prices, is hitting Mozambique at a time when growth remains weak, including due to recent climate shocks, leaving limited room for maneuver. These adverse developments pose additional downside risks to growth and upside risks to inflation”, he said, cited in the document.
“Staff discussed with the authorities their request for a Fund-supported arrangement and will return to Maputo in coming months to further discuss the request and the authorities’ policy plans”, adds the note.
The IMF forecasts Mozambique’s economic growth of 0.5 percent this year, representing a moderate recovery after the slowdown observed in recent years, influenced by internal challenges and uncertainties in international markets.
This macroeconomic projection was updated in light with the most recent data released by the country’s National Institute of Statistics (INE).
The organization also believes that the national economy could begin a gradual recovery trajectory next year, although risk factors persist, “including the evolution of commodity prices in international markets.”
By the end of March, the country paid fully its outstanding debt of 515.04 million Special Drawing Rights (equivalent to 630.1 million US dollars) to the IMF.
Mozambique was scheduled to repay the IMF 98 million dollars in 2026, 107.5 million in 2027, 129.3 million in 2028, and 136.4 million dollars in 2029. This schedule was thrown away, since Mozambique opted to pay the debt in advance.
Under the last Extended Credit Facility (ECF) programme, the IMF had approved around 468 million dollars for Mozambique in 2022. The programme was suspended in April 2025, after four tranches totalling approximately 343 million dollars had been disbursed.
The fact that Mozambique is no longer in arrears to the IMF may help the government’s efforts to obtain further loans from the Fund.
Am/
