Africa-Press – Mozambique. Mozambique’s Ministry of Finance has acknowledged that the country is facing “liquidity pressures” in the short term, but maintains that the medium-term economic outlook “remains structurally sound”, while continuing work on a programme with the International Monetary Fund (IMF).
“Mozambique is consolidating the foundations of a modern, diversified and competitive economy. Along this path of transformation, the authorities recognise that the country is facing short-term liquidity pressures,” reads a statement sent on Friday to Lusa, in which the ministry says it has taken note of the publication this week of the report on the IMF’s latest consultation with the country and its conclusions.
These treasury pressures, the Ministry of Finance explains, stem from “pressing development needs”, a “reduction in external support”, and “an unprecedented series of exogenous shocks”.
“Nonetheless, the medium-term economic prospects remain structurally sound. The gradual recovery of the economy reflects fiscal reforms and a set of policy measures aimed at energising the productive sector,” it stresses.
It adds that, “as highlighted by the IMF”, Liquefied Natural Gas projects — namely the resumption of the TotalEnergies megaproject in Cabo Delgado — “are expected to generate substantial revenues from 2030”, acting “as a catalyst for integrated value chains and core industrial platforms” central to the country’s economic transformation.
In its response to the IMF consultation report, the Ministry of Finance confirms “that macroeconomic stability can be ensured through a targeted reform programme aligned with national priorities”, including “proactive public debt management” to “strengthen the fiscal position, reduce refinancing risks and minimise debt service costs, thereby freeing up resources for social development and the structural transformation of the economy”.
The Ministry of Finance reiterates the need for “a new IMF-supported programme, to anchor the reform package, catalyse partner financing and protect the most vulnerable populations”, alongside “structural reforms aimed at unlocking Mozambique’s long-term growth potential and consolidating prudent public resource management frameworks”.
It further notes that, as Lusa reported last October, the Government hired US firm Alvarez & Marsal as “financial adviser to support the implementation of this strategy”.
“We remain committed to constructive dialogue with all stakeholders, including creditors and development partners, as we move forward in this process of economic transformation,” the government statement concludes.
The IMF does not anticipate decisions on new support for Mozambique, recalling that outstanding credit to the institution has already reached 226% of quota, according to the most recent country assessment consulted by Lusa.
“A post-financing assessment is scheduled for August 2026,” the IMF’s recommendations state, following regular consultations under Article IV conducted in 2025 and approved on 13 February. The Fund also foresees new consultations within 12 months but provides no indication regarding the possibility of a new financial support programme sought by Mozambique.
The IMF recalls that under the latest Extended Credit Facility (ECF) programme, approved in 2022, financing of around US$468 million (€398.5 million) was granted to Mozambique. However, that programme was suspended in April 2025, after approximately US$343 million had been disbursed in four tranches.
The report also states that Mozambique is expected to repay the IMF US$98 million this year, and around US$107.5 million in 2027, in addition to US$129.3 million in 2028 and US$136.4 million) in 2029.
Source: Lusa
