Mozambique clears 514 million SDRs, IMF credit outstanding now zero

Mozambique fully repaid its debt to the International Monetary Fund (IMF), settling 514.04 million SDRs in the just-ended month of March, while talks on a new assistance programme continue. An IMF update covering 1–30 March 2026 shows that, at the start of the period (28 February 2026), Mozambique’s outstanding debt stood at 514,040,000 special drawing rights (SDRs), equivalent to €630.1 million. In its February assessment, the IMF did not announce decisions on new support, which Mozambique has been seeking for a year.

At that time, the country’s outstanding credit with the IMF had reached 226% of its quota. “A post-financing review is scheduled for August 2026,” the IMF noted following Article IV consultations in 2025, adding that further consultations are planned within 12 months but giving no information on a potential new financial support programme. Under the last Extended Credit Facility (ECF) programme, the IMF had approved around US$468 million (€398.5 million) for Mozambique in 2022.

The programme was suspended in April 2025, after four tranches totaling approximately US$343 million (€292 million) had been disbursed. Mozambique was scheduled to repay the IMF US$98 million (€83.4 million) in 2026, US$107.5 million (€91.5 million) in 2027, US$129.3 million (€110 million) in 2028, and US$136.4 million (€116.1 million) in 2029. The IMF highlighted Mozambique as a major beneficiary of technical assistance and capacity-building support, covering governance, public financial management, revenue mobilisation, management of natural resource wealth, monetary and macroprudential frameworks, and statistics for the government, real sector, and financial sector.

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President Daniel Chapo said in June 2025 that a new programme was expected to be signed that year, aligned with the Government’s vision and public sector reforms. “Later this year, if all goes well, we will sign a new programme that will allow, with the Government’s new vision, us to continue an excellent relationship with the IMF,” he said. Deputy Managing Director of the IMF, Bo Li, confirmed on 17 May 2025 in Maputo that a new programme was planned.

“Our team will work together. In the coming weeks and months we will discuss a new programme, and we are committed to supporting the Mozambican economy to help maintain macroeconomic and financial stability,” he said after meeting Chapo. On 18 April 2025, the IMF and Mozambican authorities agreed to end consultations under the previous aid plan and begin negotiations for a new programme.

“To better align IMF support with the vision and priorities of the new Government, Mozambican authorities requested the start of discussions for a new IMF programme,” the IMF said. This month, the Mozambican Government confirmed that the IMF remains “open” to providing a support programme, including financing for the State Budget.

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