What You Need to Know
Mozambique’s government has reported that state revenue for 2025 is expected to be €500 million below projections, totaling approximately €4.629 billion. The Ministry of Finance’s report highlights that income taxes and taxes on goods and services will remain the primary revenue sources, despite a decline in revenue performance in the third quarter.
Africa-Press – Mozambique. Mozambique’s government estimates that state revenue reached 83.9 billion meticais (€1.117 billion) in the fourth quarter, leaving the annual total 38.1 billion meticais (€507 million) below projections.
According to a dynamic fiscal risk monitoring report by the Ministry of Finance, consulted by Lusa on Friday, if this performance is confirmed, state revenue for the whole of 2025 is expected to amount to approximately 347.7 billion meticais (€4.629 billion), falling short of the target set.
“In addition, income taxes and taxes on goods and services are expected to remain the main sources of revenue in the period, with estimated shares of 37.2% and 32.4%, respectively,” the report states.
It adds that state revenue in the third quarter of 2025 fell by 6% year-on-year in nominal terms, with budget execution at around 88.2 billion meticais (€1.174 billion), about 16.3 billion meticais (€217 million) below the quarterly forecast.
Also, during the period from July to September, tax revenues were the main source of state resources, accounting for around 85% of total revenues. Within this composition, income taxes “performed well, reaching the target set for the period and accounting for 50% of the total composition”.
“On the other hand, taxes on goods and services were around 18% lower than the quarterly forecast, accounting for 35% of state revenue, reflecting possible constraints on economic activity and the efficiency of tax collection,” the document concluded.
Mozambique has faced various economic challenges in recent years, impacting its fiscal stability. The government’s reliance on tax revenues, particularly from income and goods and services, has been critical for funding public services and infrastructure. However, fluctuations in economic activity and tax collection efficiency have raised concerns about meeting revenue targets, necessitating ongoing fiscal monitoring and adjustments to economic policies.
The Ministry of Finance’s dynamic fiscal risk monitoring report reflects the government’s efforts to assess and address these challenges. As the country navigates its economic landscape, understanding the implications of revenue shortfalls
