The International Monetary Fund has discussed Mozambique’s request for a fund-supported arrangement, as it concluded a week-long mission to the heavily indebted African country on Friday.
Mozambique was facing a “challenging economic situation”, Pablo Lopez Murphy, who led the IMF team that visited Maputo from June 8 to 12, said.
“Economic activity is gradually recovering from a contraction in 2025 but growth remains subdued,” he said.
The IMF’s objective was to review economic developments, discuss the authorities’ plans to restore fiscal and debt sustainability and explore how the fund could best support Mozambique.
The IMF reclassified the country’s debt as unsustainable in February, citing deteriorating public finances. The debt problems date to a a 2016 hidden-debt scandal, which wrecked investor confidence and curbed access to funding.
- The IMF concluded a week-long mission to Mozambique, discussing the country's request for a fund-supported arrangement.
- Mozambique is experiencing a challenging economic situation, with economic activity gradually recovering from a 2025 contraction but growth remaining subdued.
- The IMF team reviewed economic developments and discussed Mozambique's plans to restore fiscal and debt sustainability.
- The IMF classified Mozambique's debt as unsustainable in February due to deteriorating public finances.
- Mozambique's debt issues stem from a 2016 hidden-debt scandal that undermined investor confidence and limited funding access.
