Mozambique: IMF calls for further reforms before any new program

The International Monetary Fund concluded a ten-day mission in Mozambique on September 18 without reaching an agreement on a new financial support program. The institution believes that Maputo must make further progress on several reforms to reduce budgetary and external imbalances and restore debt sustainability.

The mission, led by Pablo Lopez-Murphy from September 9 to 18, met with Prime Minister Maria Benvinda Levi, Finance Minister Carla Loveira, and the Governor of the Bank of Mozambique, Felisberto Navalha. The IMF stated that discussions on reforms that could support a future program will continue in the coming months.

The Mozambican government aims to quickly revive support from the Fund. The Ministry of Finance indicated that a new mission could take place in November to discuss the objectives and conditions of a potential program, although no amount or disbursement schedule has been announced at this stage.

The IMF describes the economy as still lacking dynamism but showing signs of recovery. Inflation remains contained, and the budget adjustment initiated in 2025 continues, primarily through expenditure control, in a context where financing conditions remain tight.

Debt is one of the main obstacles. The Fund and the World Bank consider Mozambique’s public debt to be unsustainable, while the country continues to face high financing needs and delays in several major gas projects that are expected to boost exports and public revenue.

Mozambique ended its previous program with the IMF earlier than expected in April 2025. Since then, authorities have sought to restore access to external financing and recreate the conditions for new multilateral support.

The IMF also highlights the medium-term potential related to the development of the country’s gas resources but conditions any sustainable improvement in prospects on the reduction of macroeconomic imbalances and the restoration of a sustainable debt trajectory.