Africa-Press – Mozambique. Mozambique’s public debt rose by 1.5% in the third quarter of 2025 compared with the previous quarter, reaching a new record of 1.128 trillion meticais (€15.055 billion), according to data accessed by Lusa on Monday.
According to figures from the Ministry of Finance’s public debt bulletin for the third quarter, the debt ratio — including public debt contracted domestically and externally, as well as guaranteed debt — reached the equivalent of 73% of gross domestic product (GDP) at the end of September.
The bulletin states that “the growth of Central Government debt was mainly influenced by domestic debt, as a result of the refinancing of short-term debt, the issuance of debt through advances from the Central Bank, and liability management operations”, which resulted in the rollover of Treasury Bonds maturing in 2025.
As a result, Central Government domestic debt increased by 4.2%, from 444.99 billion meticais (€5.94 billion) to 463.72 billion meticais (€6.19 billion) by the end of the third quarter.
Mozambique’s sovereign risk closed the first half of the year at a “severe level”, due to pressure from public debt, according to a report by the central bank.
“In June 2025, sovereign risk remained at a severe level. The persistence of sovereign risk at a severe level stems from pressure on public debt,” stated the previous semi-annual financial stability bulletin of the Bank of Mozambique.
The document adds that the ratio of credit to the government relative to total credit “remained at a severe level, at 44.84%, compared with 46.01% in December 2024”.
“On the other hand, the public debt-to-GDP ratio remained at a high-risk level”, standing above 73% in June, compared with 71.79% in December 2024.
Mozambique’s Minister of Finance, Carla Loveira, said on October 29 that the sustainability of public debt is “one of the greatest challenges” facing the Mozambican economy, noting that “reforms” are under way to ensure its sustainable management.
On October 27, Lusa reported that the Mozambican government hired US-based consultancy Alvarez & Marsal to “support the preparation of the public debt restructuring plan” and to “assist in drafting the Public Debt Strategy for 2026–2029”.
Alvarez & Marsal, headquartered in New York with a global presence, is described as a specialist in corporate recovery and performance improvement, having been involved in cases such as Lehman Brothers.
Mozambique closed 2025 with a new Treasury Bond (OT) exchange operation on the stock exchange worth more than 8.36 billion meticais (€111.6 million), according to official data compiled by Lusa.
According to figures from the Mozambique Stock Exchange (BVM), this refers to the issuance of the OT-2025 10th Series, dated December 31, for which the demand-to-supply ratio stood at 93.71%. “With the total demand allocated”, the issuance amounted to 8.364 billion meticais (€111.6 million).
Of this total, 7.416 billion meticais (€98.9 million) corresponded to the exchange of previous bonds, while 949.18 million meticais (€12.6 million) related to “new allocations”, according to the BVM.
In the days preceding this operation, Mozambique also raised nearly 8.0 billion meticais (€106.1 million) through three Treasury Bond issuances via the stock exchange between December 26 and 29.
These three issuances add to six previous Treasury Bond operations carried out between March and September, totalling 26.674 billion meticais (€355 million), five of which were entirely for the exchange of previous issuances, according to Ministry of Finance data reported by Lusa in November.
