MAPUTO, Feb 23 – The World Bank is planning to provide Mozambique with up to $6 billion in financing over the next five years, as the Southern African nation works to stabilize its economy and address structural vulnerabilities.
According to the bank’s division director for Mozambique and several Indian Ocean countries, approximately $3 billion will come directly from the World Bank’s balance sheet, while an additional $3 billion is expected to be mobilised from partner institutions and co-financing sources. Most of the funding will be concessional, offering favourable terms to support long-term development.
The financing package is expected to play a key role in supporting Mozambique’s fiscal stability, infrastructure development, and economic reform efforts, particularly as the country navigates ongoing financial pressures and limited external financing options.
The announcement comes shortly after the International Monetary Fund warned that Mozambique faces rising debt risks and structural vulnerabilities, despite improving economic prospects. While the resumption of a major liquefied natural gas project and the country’s removal from the Financial Action Task Force grey list have improved sentiment, significant risks remain.
These risks include elevated public debt levels, security concerns, climate-related shocks, and institutional constraints, which continue to weigh on long-term growth prospects.
The World Bank’s planned financing reflects growing international support for Mozambique’s recovery efforts and highlights the importance of concessional funding in strengthening economic resilience, restoring fiscal balance, and enabling sustainable development.
