MAPUTO, Sept 19 – Mozambique is seeking to advance discussions on a new International Monetary Fund-supported programme after an IMF mission concluded in Maputo, although the Fund said further reforms are needed before an agreement can move forward.
Mozambique’s Finance Ministry said a follow-up mission could take place as early as November to discuss the conditions and targets that could underpin a new programme. The IMF said discussions on the reforms required to pave the way for Fund support would continue in the coming months.
The IMF mission, led by Mozambique mission chief Pablo Lopez-Murphy, visited Maputo from September 9 to 18. The team met Prime Minister Maria Benvinda Levi, Finance Minister Carla Loveira and Bank of Mozambique Governor Felisberto Navalha, alongside other government officials, private-sector representatives, civil society organisations and development partners.
At the conclusion of the mission, the IMF said Mozambique continues to face significant fiscal and external challenges, including tight financing conditions, climate shocks and energy-related disruptions. At the same time, the Fund noted that the country’s economic activity is showing signs of recovery and that inflation remains contained.
“The mission welcomed the authorities’ commitment to advancing reforms. Continued policy efforts will be needed to address fiscal and external imbalances, restore debt sustainability, and create the conditions for stronger, more inclusive and resilient growth,” Lopez-Murphy said.
The IMF added: “Discussions on the reforms needed to pave the way for a Fund-supported program will continue in the coming months.”
Mozambique’s previous IMF programme ended in April 2025. The country has since sought another arrangement as it confronts persistent fiscal and external pressures and restricted access to financing.
Debt sustainability remains a central issue in the discussions. The IMF and World Bank have assessed Mozambique’s debt burden as unsustainable, while the country continues to face significant financing constraints. The IMF’s February 2026 assessment called for stronger fiscal consolidation, improved public financial management, better debt management and greater transparency to restore debt sustainability.
Mozambique’s current difficulties also reflect the longer-term impact of the 2016 hidden-debt scandal, which severely damaged investor confidence and constrained the country’s access to international financing.
Delays to major liquefied natural gas projects have added to the pressure. The projects had been expected to generate substantial export earnings, government revenue and foreign investment, but delays have slowed the anticipated improvement in Mozambique’s external and fiscal position.
Despite those constraints, the IMF said fiscal consolidation that began in 2025 is continuing, supported by expenditure restraint. The Fund also said Mozambique’s medium-term prospects remain significant because of its natural gas resources.
Mozambique cleared its outstanding financial obligations to the IMF earlier this year, removing one obstacle to renewed engagement with the Fund. The latest mission, however, indicates that clearing arrears alone will not be sufficient for a new programme, with further policy reforms required to address debt sustainability, external imbalances and the country’s broader financing needs.
Financial markets responded cautiously to the IMF’s assessment. Mozambique’s dollar-denominated bond maturing in September 2031 gave up some of its earlier gains after the Fund’s statement and was bid at 94.29 cents, according to Tradeweb data cited by Reuters.
The next stage of discussions will therefore focus on the reform package and programme conditions required to establish a new IMF-supported framework, with a possible follow-up mission in November providing a potential opportunity to advance those negotiations.
