Mozambique’s public debt rose nearly 5% in 2025 compared to the previous year, closing at 1.095 trillion meticais (€14.5 billion), according to data accessed today by Lusa.
According to information from the Ministry of Finance on budget execution, that total — compared with 1.043 trillion meticais (€13.8 billion) on December 31, 2024 — was divided at the end of 2025 into 621,284 million meticais (€8.25 billion) of external debt and 474,013 million meticais (€6.294 billion) of domestic debt.
Included in the domestic debt figure is 95,665 million meticais (€1.27 billion) in financing to the state by the Bank of Mozambique, compared with 66,565 million meticais (€884 million) extended up to December 31, 2024, according to historical data provided by the Ministry of Finance.
In debt servicing alone, the Mozambican state paid nearly 53,345 million meticais (€708.2 million) in 2025, representing 89.1% of the annual budget and a 19% decrease compared to 2024, the Ministry of Finance document states.
Of that total, domestic interest payments corresponded to 40,686.5 million meticais (€540.2 million), while interest on external financing reached 12,516.2 million meticais (€166.2 million) last year.
The document also notes that among Mozambique’s state operating expenditure in 2025, debt servicing represented 15.2% of the total.
In its recent regular assessment of Mozambique, concluded this month, the International Monetary Fund again stressed the “unsustainability” of Mozambique’s public debt.
“Mozambique’s external debt is assessed as being at high risk of insolvency, while overall debt is assessed as being in a critical situation. The debt is currently considered unsustainable, primarily due to the political infeasibility of a comprehensive adjustment that could potentially safeguard debt sustainability,” the IMF states in the assessment.
It also acknowledges that “additional risks to the deterioration of the debt trajectory” include the “contracting of non-concessional debt on unfavourable terms” or potential further delays in the resumption of liquefied natural gas (LNG) megaprojects.
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The IMF calls for a “comprehensive and coordinated strategy” to “reduce macroeconomic imbalances and help restore debt sustainability,” namely through “fiscal consolidation by containing the wage bill,” as well as revenue-side measures.
“It is essential to restore stability while creating fiscal space for development and safety nets for the most vulnerable. Market-based voluntary liability management may also be necessary to address severe short-term financing pressures,” the IMF argues in the same report.
