Mozambique: Government forecasts 50.3 billion meticais for debt servicing this year

The 2025 Annual Public Debt Report, to which Lusa gained access today, forecasts debt servicing payments of 38.659 billion meticais (€515 million) in principal repayments and 11.65 billion meticais (€156 million) in interest payments. According to the document from the Ministry of Finance, «the predominance of capital repayment in the projected debt service reflects the maturity profile of the external portfolio». This projection follows a 39.03% reduction in external debt servicing in 2025 to $542.73 million (€467 million), driven by lower capital repayments and interest payments, as well as the rescheduling of certain financial obligations.

According to the document, the largest payments forecast for 2026 are expected to be concentrated after January in March, July and September – months that account for more than half of the projected annual debt service. March and September alone account for payments totalling 14-06 billion meticais (€188 million). The report also warns of a worsening of financial pressure between 2028 and 2029, when external debt servicing could reach 60.15 billion meticais (€803 million), due to the start of principal repayments on the MOZAM 2032 ‘eurobonds’.

This instrument alone is expected to account for repayments of 56.19 billion meticais (€750 million). In 2025, arrears on external public debt totalled 14.7 billion meticais (€196 million), of which 12.7 billion meticais (€170 million) related to principal and 1.95 billion meticais (€26 million) to interest. The document states that «the largest amounts in arrears were concentrated» in China, at 6.42 billion meticais (€85 million), followed by the International Monetary Fund (IMF), at 3.75 billion meticais (€50 million), the Islamic Development Bank (IDB), with 1.18 billion meticais (€15.8 million), and Portugal, with 1.07 billion meticais (€14.3 million).

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The document states that the trend in arrears was linked to «fiscal constraints, against a backdrop of high debt servicing requirements and the management of the State’s financing priorities». In addition to these amounts, Mozambique has outstanding liabilities of $394.33 million (€340 million) to Libya, Angola, Bulgaria and Poland, relating to creditors who have not granted debt relief under the terms agreed within the framework of the Paris Club. The Government states that it continues «to maintain dialogue with the aforementioned creditors, with a view to identifying appropriate mechanisms for settling these financial obligations».

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