Mozambique’s public debt stock has skyrocketed by 20% over the last five years, closing 2025 at the equivalent of 72.23% of the Gross Domestic Product (GDP), according to data from the General State Account (CGE) to which Lusa had access today.
According to the document approved by the Government, which now proceeds to parliament for analysis, the public debt grew from 909,505 million meticais in 2021, then equivalent to 16,181 million dollars (13,900 million euros), to 1.090 trillion meticais or 17,065 million dollars (14,668 million euros).
“This increase was largely driven by the accelerated growth of domestic indebtedness, with a greater emphasis on short-term debt justified by the weak demand for medium-term instruments,” reads the 2025 CGE.
It adds that the public debt stock “remains predominantly composed of external debt,” which represents 56% of the total, while the remaining 44% corresponds to domestic indebtedness. The document also states that the accumulated public debt balance at the end of the 2025 fiscal year, excluding State guarantees, rose to the equivalent of 72.23% of the GDP.
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This represented a nominal increase of 4.5% compared to 2024, with a highlight on Treasury Bonds (OT), whose stock rose 6% in the last year to 193,298 million meticais (2,600 million euros), equivalent to 12.8% of the GDP. Treasury Bills (BT) also grew 21.2% to 159,621 million meticais (2,147 million euros), equivalent to 10.57% of the GDP as of last December.
The International Monetary Fund (IMF) warned in February that Mozambique “faces increasingly difficult financing conditions,” leading to cuts in the acquisition of goods and services.
In the conclusions of the Article IV consultation with Mozambique, approved by the executive board and released by the institution, the IMF states that the “Government faces increasingly difficult financing conditions,” pointing immediately to “delays in debt service.”
The holding of public securities by national banks—the main source of financing for the large and persistent fiscal deficits—has stagnated. Net external financing has been negative. Facing these restrictive financing conditions, the fiscal deficit is estimated to have decreased significantly in 2025.
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The deficit dropped to 4.5% of the GDP, compared to 6.2% in 2024, mainly due to the reduction of expenses on goods, services, and capital projects, the IMF pointed out at the time. It also emphasized that Mozambique “continues to face a complex macroeconomic environment, marked by moderate growth, fiscal and debt vulnerabilities, and a decrease in foreign aid.”
At the same time, the country faces pressing development needs, capacity limitations, and frequent natural disasters, the report reads.
In the conclusions approved by the executive board, the IMF directors emphasize “the substantial risks and vulnerabilities arising from large internal and external imbalances, weak growth, high public debt, security challenges, institutional weaknesses, and climate shocks.”
They stress “the urgency of a comprehensive package of policy reforms to consolidate macroeconomic stability and lay the foundations for stronger and more lasting growth,” as well as the “critical need for an ambitious and credible fiscal consolidation to help reduce financing needs.”
