MAPUTO, June 12 – The International Monetary Fund has concluded a week-long mission to Mozambique, holding discussions with government officials on a potential fund-supported programme aimed at restoring fiscal stability and addressing the country’s mounting debt challenges.
The IMF delegation, led by Mission Chief Pablo Lopez Murphy, visited Maputo from June 8 to June 12 to assess recent economic developments and explore options for future financial support.
According to the IMF, Mozambique continues to face a challenging economic environment despite signs of a gradual recovery.
“Mozambique is facing a challenging economic situation,” Murphy said in a statement issued at the conclusion of the mission.
He noted that economic activity is beginning to recover following the contraction recorded in 2025, but growth remains subdued and significant vulnerabilities persist.
During the discussions, IMF officials reviewed the government’s plans to strengthen public finances, improve debt sustainability and support economic recovery.
The talks also focused on identifying areas where the Fund could assist Mozambique through a new programme arrangement.
The Southern African nation remains heavily indebted and continues to grapple with the legacy of a prolonged debt crisis.
In February, the IMF reclassified Mozambique’s public debt as unsustainable, citing a deterioration in fiscal conditions and growing financing pressures.
Mozambique’s debt challenges can be traced back to the country’s 2016 hidden debt scandal, which severely damaged investor confidence and restricted access to international financing.
The scandal involved previously undisclosed government-backed borrowing that ultimately triggered a sovereign debt crisis and led to years of economic instability.
Since then, authorities have been working to rebuild credibility with international investors and development partners while implementing reforms aimed at improving fiscal management and transparency.
The latest discussions with the IMF come as Mozambique seeks to stabilize its economy amid ongoing financial pressures and rising development needs.
A new IMF-supported programme could provide an important framework for economic reforms, strengthen investor confidence and help unlock additional financing from development partners.
While no agreement has yet been announced, the conclusion of the mission marks another step in Mozambique’s efforts to restore macroeconomic stability and place public finances on a more sustainable path.
