Mozambique seeks new IMF programme after early debt repayment

Mozambique has said it intends to negotiate a new support programme with the International Monetary Fund (IMF) following the early repayment of its debt, during meetings taking place this week in Washington with officials from international financial institutions. “The early repayment of the debt [€630 million] to the IMF does not mean that engagement with the Fund has ended. On the contrary, we are opening a new chapter with the IMF and will, naturally, this week hold meetings at Fund level to engage on a new programme,” said the National Director for Fiscal and Financial Analysis, Alfredo Mutombene, quoted today by local media.

The official explained that the meetings began on Monday and will 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 expected to hold technical meetings with officials from both financial institutions to discuss new forms of economic cooperation. According to Alfredo Mutombene, the World Bank’s new policy framework includes initiatives focused on job creation through projects with significant economic impact.

“For this specific area, there are projects in clearly defined sectors that are labour-intensive, namely energy, development corridors, agribusiness and tourism,” he said. Mozambican President Daniel Chapo described the decision on 9 April to fully and ahead of schedule repay the €630 million debt to the IMF as “courageous”, stating that it demonstrates Mozambique’s “responsibility”, using the country’s international reserves. “This courageous decision should be viewed in a positive and strategic way, as a clear sign of macroeconomic responsibility and the strengthening of Mozambique’s international stability.

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And because, equally, the dignity of a people has no price,” said Chapo. “We will therefore continue to adopt measures that stimulate domestic production and attract more investment, by strengthening a more favourable business environment and an increasingly competitive economy,” he added, reiterating the country’s willingness to enter into a new IMF support programme, under negotiation since 2025. Mozambique’s Ministry of Finance confirmed on Thursday that it had made a “full and early repayment” of €630 million to the IMF, settling financing contracted under the Poverty Reduction and Growth Trust (PRGT). In a statement, the ministry said it had carried out the “early repayment of all obligations” linked to Mozambique’s IMF PRGT programme, totalling 698,587,604 US dollars (€630 million).

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