The Confederation of Economic Associations (CTA) met on Thursday (2nd) in Maputo with a delegation from the International Monetary Fund (IMF) to discuss reforms aimed at reducing public debt and strengthening the national private sector.
According to the Mozambican Information Agency (AIM), CTA’s Deputy Executive Director, Eduardo Macuácua, explained that harmonizing the tax obligations of national companies is one of the priorities discussed with the IMF. “What we collect as revenue is below the level of public expenditure. The IMF proposes reducing spending to balance this deficit, but it is also important to broaden the tax base,” he said.
Macuácua noted that currently only 20 to 30% of the formal economy pays taxes, while most of the informal economy contributes little to state revenues. “It is urgent to simplify business registration and licensing processes so that more operators can formalize and pay taxes,” he argued. He also suggested that the government review the benefits and exemptions granted to certain foreign investments to strengthen public revenue and promote greater tax equity.
During the meeting, the IMF shared experiences from other countries facing similar challenges and accepted the CTA’s invitation to participate in the 20th Annual Private Sector Conference (CASP), scheduled for November 12–14 in Maputo.
Mozambique’s public debt continues to rise, reaching around 1.1 trillion meticais (17.4 billion USD) in the second quarter of 2025, equivalent to 79.1% of GDP. The domestic debt component grew significantly, while external debt saw a slight decrease, putting pressure on public finances.
Despite this, the cost of debt servicing (interest and amortizations) fell by 7.5% in the first half of 2025 compared to 2024, to about 27 billion meticais. The Bank of Mozambique has repeatedly warned of the need to boost revenue and contain spending to ensure fiscal sustainability.
Source: Diário Económico
