Mozambique public debt up 5% YoY in 2025

Mozambique’s public debt rose nearly 5% year-on-year in 2025, having closed 2024 at 1.043 trillion meticais (€13.8 billion) and reaching 1.095 trillion meticais (€14.5 billion) by the end of 2025, according to data obtained by Lusa today. According to information from the Ministry of Finance on budget execution, this amount, compared with 1.043 trillion meticais (€13.8 billion) on 31 December 2024, was divided at the end of 2025 into 621.284 billion meticais (€8.25 billion) of external debt and 474.013 billion meticais (€6.29 billion) of domestic borrowing. Domestic borrowing includes 95.665 billion meticais (€1.27 billion) of financing to the state by the Bank of Mozambique, compared with 66.565 billion meticais (€884 million) provided by 31 December 2024, according to the historical data released by the Ministry of Finance.

In debt servicing alone, the Mozambican state paid nearly 53.345 billion meticais (€708.2 million) in 2025, representing 89.1% of the annual budget and a 19% decrease compared with 2024, the Ministry of Finance document states. Of this total, domestic interest accounted for 40.6865 billion meticais (€540.2 million) and interest on external financing also reached 12.5162 billion meticais (€166.2 million) last year. The Finance Ministry document also notes that, among Mozambique’s state operating expenses in 2025, debt service represented 15.2% of the total.

In its recent regular assessment of Mozambique, concluded this month, the International Monetary Fund (IMF) again emphasised the “unsustainability” of Mozambique’s public debt. “Mozambique’s external debt is assessed as high risk of insolvency, while overall debt is assessed as critical. Debt is currently considered unsustainable, mainly due to the political infeasibility of a comprehensive adjustment that could potentially safeguard debt sustainability,” theIMF notesin the assessment.

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It also recognises that “additional risks to the deterioration of the debt trajectory” include the “contraction of non-concessional debt on unfavourable terms” or potential new delays in the resumption of the liquefied natural gas (LNG) megaprojects. For the IMF, a “comprehensive and coordinated strategy” is required to “reduce macroeconomic imbalances and help restore debt sustainability,” particularly through “fiscal consolidation via containment of the wage bill,” as well as revenue-side measures. “It is essential to restore stability while creating fiscal space for development and safety nets for the most vulnerable. Voluntary market-based liability management may also be necessary to address severe short-term financing pressures,” the IMF states in the same report.

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