Maputo, Oct. 29, 2025 (Lusa) - Mozambique's Finance Minister, Carla Loveira, said on Wednesday that the sustainability of public debt is "one of the biggest challenges" facing the Mozambican economy and that "reforms" are underway to ensure its sustainable management.
"One of the biggest challenges facing our economy is the sustainability of public debt. It is our obligation, as managers of state finances, to ensure that every metical borrowed is used efficiently, productively and responsibly," said Carla Loveira, at the opening of the Coordinating Council of the Ministry of Finance, which is being held today in Maputo province.
The minister said that "a series of reforms are underway to ensure the sustainability of the public debt", which include drawing up the Public Debt Management Strategy covering the period from 2025 to 2029, revising the regulation that establishes the legal framework for the capital market and "identifying specialised advice on public debt matters".
"These actions are aimed at strengthening the mechanisms for managing, controlling and monitoring the levels of national public debt, ensuring that the public debt is sustainable and creating more fiscal space for financing productive infrastructure projects with proven economic and social returns," she said.
Carla Loveira said that Mozambique's government maintains a "permanent dialogue" with "international partners, to ensure that the national debt policy remains within the limits of fiscal sustainability and in line with best international practices".
"Responsibility in contracting and utilising public debt is not only technical, it is also ethical and intergenerational, as it defines the economic legacy we will leave to future generations," he added.
According to government figures, Mozambique's public debt reached a record 1.072 trillion meticais (€14.4 billion) on 30 June.
Lusa reported on 27 October that Mozambique's government had hired the Americans Alvarez & Marçal to "assist in drawing up a plan to restructure Mozambique's public debt", according to a Cabinet decision.
According to the resolution, of 22 October, the international consultancy was hired by direct agreement and aims to draw up a plan to restructure the country's public debt, "in line with the government's objectives of ensuring fiscal consolidation in the short and medium term", but also to "provide support in drawing up the Public Debt Strategy 2026-2029".
Alvarez & Marsal, headquartered in New York and with a global presence, is described as a company specialising in recovery and performance improvement, with interventions including those for Lehman Brothers and Warnaco.
The governor of the Bank of Mozambique, Rogério Zandamela, warned on 29 September that the country's public debt could no longer grow and expected the government to take measures to contain it.
"It can't grow. I know, I'm sure, that the government is doing everything possible to keep this debt at reasonable levels so it doesn't create problems for the economy. Because if it continues to grow to the point where it reaches worrying levels of unsustainability, it could cause problems," Zandamela warned.
The governor of the Bank of Mozambique was speaking to journalists after the Monetary Policy Committee (CPMO) meeting, which is held every two months, emphasising the importance of containing the impact of debt growth, especially domestic debt.
"Yes, it has an impact on economic growth, it can't grow infinitely. There comes a time when it has to be taken care of, with appropriate measures, revenue measures, expenditure measures, all kinds of adjustments that are necessary to be able to reduce, contain or mitigate the growth of this debt," he said.
The CPMO concluded that the "pressure on domestic public debt continues to worsen", recognising an "impact on the normal functioning of the government securities market".
PVJ/ADB // ADB.
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