Maputo, May 15, 2026 (Lusa) - Mozambique's public debt jumped 20% over the last five years, closing 2025 at 72.23% of Gross Domestic Product (GDP), according to CGE (State General Account, the government's official financial report) data, which Lusa saw on Friday.
The government approved the document, which now goes to parliament for analysis. It shows public debt grew from 909,505 million meticais in 2021, then worth $16.181 billion (€13.9 billion), to 1.09 trillion meticais, or $17.065 billion (€14.668 billion).
“Rapidly growing domestic debt drove this increase, especially short-term debt due to weak demand for medium-term instruments,” the 2025 CGE states.
The report adds that the public debt stock “remains predominantly composed of external debt”, representing 56% of the total, while domestic debt accounts for the remaining 44%.
The document shows that the accumulated public debt balance at the end of the 2025 financial year rose to 72.23% of GDP, excluding state guarantees, which means a nominal increase of 4.5% against 2024.
The report highlights Treasury Bonds (OT) the amount of which rose 6% over the last year to 193,298 million meticais (€2.6 billion), or 12.8% of GDP.
It also notes Treasury Bills (BT) grew 21.2% to 159,621 million meticais (€2.147 billion), or 10.57% of GDP last December.
The International Monetary Fund (IMF) warned in February that Mozambique “faces increasingly difficult financing conditions”, leading to cuts in purchasing goods and services in 2025, a year with an estimated economic growth of 0.5%.
In conclusions from its Article IV consultation (regular economic review) with Mozambique, approved by the executive board and released by the institution, the IMF said the government “faces increasingly difficult financing conditions”, pointing to “delays in debt servicing.”
“Domestic bank holdings of public securities — the main financing source for large and persistent fiscal deficits — stagnated. Net external financing has been negative. These restrictive financing conditions helped lower the estimated budget deficit significantly in 2025 to 4.5% of GDP, down from 6.2% in 2024, mainly due to reduced spending on goods, services and capital projects,” the IMF noted at the time.
The fund also said Mozambique “continues to face a complex macroeconomic environment, featuring moderate growth, fiscal and debt vulnerabilities, and a decrease in foreign aid.”
“At the same time, the country faces urgent development needs, capacity constraints and frequent natural disasters,” it added.
IMF directors noted “substantial risks and vulnerabilities stemming from large domestic and external imbalances, weak growth, high public debt, security challenges, institutional weaknesses and climate shocks” facing Mozambique in the conclusions approved by the executive board.
They called for “an urgent comprehensive package of policy reforms to consolidate macroeconomic stability and lay the foundations for stronger and more durable growth.”
They also noted the “critical need for an ambitious and credible fiscal consolidation to help reduce financing needs and restore debt sustainability, as well as to create fiscal space to finance vital social and development needs.”
PVJ/LYT // AYLS
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