INSUBCONTINENT EXCLUSIVE:
Mozambique faces a severe debt crisis that threatens its economic stability and development prospects.Recent reports paint a grim picture of
euros in internal debt alone
country must pay 38 billion meticais (545 million euros) in 2025 and 34 billion meticais (480 million euros) in 2026.The surge in internal
public debt is not an isolated issue
Crisis: A Nation Burdened by Internal and External Obligations
This debt crisis stems from multiple factors.The hidden debt scandal of 2016, where large loans were taken without parliamentary approval,
leading to increased expenses and IMF warnings.Between December 2023 and May 2024, internal public debt jumped by 51.9 billion meticais,
bringing the total close to 370 billion meticais.External debt also poses significant challenges
Eurobonds maturing in 2031, up from 5% previously
This translates to $81 million annually from 2023 to 2028, rising to $225 million per year between 2028 and 2031.The IMF projects
However, public debt is expected to reach a staggering 97.5% of GDP, among the highest in Africa.In addition, under current arrangements,
its debt while fostering sustainable economic growth will be critical in the coming years, as the international community watches closely.
