The stock of direct debt of the State-Owned Enterprise sector (SEE) recorded a 2.1% increase in the third quarter of 2025, reaching approximately €625.4 million, according to data released by the Ministry of Finance.
This growth corresponds to an increase of €12.8 million compared to the previous quarter and was driven mainly by the contracting of new external financing by Empresa Moçambicana de Seguros (EMOSE), amounting to €7 million. The operation aimed to strengthen the company’s cash flow and support new investments.
The rise in debt was also influenced by PETROMOC, LAM and CFM, whose levels of domestic indebtedness increased. PETROMOC, for example, saw its balance grow by €6 million, allocated to co-financing the expansion of the Pemba Fuel Terminal. EMOSE recorded an increase of €4.5 million, while LAM posted a more modest rise of around €300,000.
By contrast, the external component of SEE debt declined by 2.5%, falling from €292.4 million to €285 million. This contraction was driven mainly by a reduction in the debt levels of investee companies, such as the National Investment Bank (BNI), whose debt fell by more than 75%, and PETROMOC, with a 25% reduction.
In contrast, Electricidade de Moçambique (EDM) saw its external debt rise slightly by around €1.5 million, representing an increase of 2.7% compared to the previous quarter. Overall, SEE domestic debt increased from €327 million to €340.4 million, a rise of 4.1%. This trend highlights a growing reliance on domestic financing by state-owned enterprises, at a time when the cost of external credit remains high and access to new international financing lines is still limited.
The structure of corporate debt remains heavily exposed to variable interest rates, which account for 90% of the total. Only 10% is linked to fixed rates, which could increase financial burdens if benchmark interest rates rise.
From a currency perspective, most of the SEE’s direct debt is denominated in US dollars, representing 68.2% of the total, while the metical accounts for 31.4% and the euro just 0.4%.
Text: Felisberto Ruco
