Mozambique on track for new IMF agreement, government says

The Mozambican government has acknowledged that it is taking steps towards agreeing a new support programme with the International Monetary Fund (IMF), after the early repayment of the country’s total debt of €630 million. “We are on track to return to an agreement with the IMF,” said minister Salim Valá, the government spokesperson for the weekly Council of Ministers meeting held today in Maputo, when asked by journalists. “On both sides, there are commitments that must be made, that must be agreed, and we remain aligned and committed so that Mozambique can have an agreement with the IMF,” he added, stressing the importance of the country having settled its debt to the institution in March.

“The debt repayment was a very concrete action. Despite its limitations, Mozambique is still a developing country. It mobilised efforts and resources and took the decision to pay what was owed, also to demonstrate commitment, that it is a serious country, a serious government, and wants to honour its commitments in order to open new windows for other opportunities and agreements with a very relevant institution such as the IMF,” added the Minister of Planning and Development.

Mozambique says it wants to negotiate a new support programme with the IMF during meetings taking place this week in Washington with officials from international financial institutions. “The early repayment of the IMF debt does not mean that engagement with the Fund has ended. On the contrary, we are opening a new chapter with the IMF and we will, of course, this week, hold meetings at the Fund level to engage on the new programme,” said the National Director of Fiscal and Financial Analysis, Alfredo Mutombene.

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He explained that the meetings began on Monday and run until Friday, as part of the IMF and World Bank spring meetings. The Mozambican delegation is led by Finance Minister Carla Loveira and is scheduled to hold technical meetings with officials from both financial institutions to discuss new forms of economic cooperation. Mozambican President Daniel Chapo described the decision on 9 April to fully and early settle the €630 million IMF debt as “courageous”, saying it demonstrates Mozambique’s “responsibility”, using the country’s international reserves.

“This courageous decision should be seen in a positive and strategic light, as an unequivocal sign of macroeconomic responsibility and the strengthening of Mozambique’s international stability. And because, equally, the dignity of a people has no price,” said Chapo. “Therefore, we will continue to adopt measures that stimulate domestic production and attract more investment, through strengthening a more favourable business environment and an increasingly competitive economy,” he added, reiterating openness to a new IMF support programme, under negotiation since 2025, when the existing programme was terminated before completion. The Mozambican Ministry of Finance confirmed on Thursday that it had made an “integral and early repayment” of €630 million to the IMF, settling loans contracted under the Poverty Reduction and Growth Trust (PRGT).

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