In 2025, the Islamic State in Mozambique (ISM) diversified its sources of funding, resorting to kidnappings, extortion, and artisanal mining, although it is not yet clear whether these practices replace or merely complement external financial support, analyst Peter Bofin said on Thursday, 22 January, cited by Lusa.
According to the senior researcher at the Armed Conflict Location & Event Data Project (ACLED) for Southern Africa, the ISM traditionally relied on external funding from al-Karrar, an Islamic State financial cell that, based in Somalia, oversees the group’s financial operations and recruitment in central, eastern, and southern Africa.
Bofin noted that this flow of funding may have been affected by the intensification of military operations against Islamic State structures in Somalia, carried out by Puntland forces with support from the United States and the United Arab Emirates since early 2025.
In this context, the ISM appears to have expanded its sources of income, increasingly relying on kidnappings for ransom, extortion, and illegal mining activities, although there is no confirmation that these practices entirely replace external funding.
“Ransom kidnappings quadrupled in 2025, representing about 10% of all group activity that year,” the analyst said during a webinar titled “Ransom, Gold, and War Spoils: The Islamic State’s New Cash Flow in Mozambique.”
On the ground, these actions include the setting up of roadblocks to stop people, vehicles, and goods, especially along National Road N380, which connects the south to the north of Cabo Delgado province, as well as the seizure of vessels and crews along the coast.
In some cases, civilians are kidnapped during attacks on villages and later released upon payment of ransom, he added.
According to the expert, these practices “have broader impacts on the local economy,” as they restrict the circulation of essential goods and hinder the delivery of humanitarian aid in conflict-affected areas.
At the same time, ISM presence in artisanal and small-scale mining areas for resources such as gold and precious stones increased significantly in 2025, amid a context of rising international gold prices, which grew by more than 60%.
However, Bofin clarified that there is no evidence that the group directly controls mining operations, with only indications of forced payments and occasional seizure of gold and gemstones.
Regarding armaments, the ISM continues to acquire most weapons and ammunition through capture in clashes with the Mozambican Defence Armed Forces (FADM), a recurring practice since the beginning of the insurgency, which intensified throughout 2025.
Last year, the group was active in 16 of the 17 districts of Cabo Delgado province and also conducted operations in the neighbouring provinces of Nampula and Niassa.
Cabo Delgado, a province rich in natural resources, especially natural gas, has faced extremist attacks for eight years, since the first recorded assault on 5 October 2017 in the district of Mocímboa da Praia.
