The Islamic State in Mozambique (ISM) diversified its sources of funding in 2025, resorting to kidnappings, extortion and artisanal mining, although it is not yet clear whether these practices are replacing or merely complementing external financial support, analyst Peter Bofin said on Thursday, 22 January, as quoted by the Lusa news agency.
According to the senior researcher for Southern Africa at the Armed Conflict Location & Event Data (ACLED) organization, ISM traditionally depended on external funding from the al-Karrar office, a financial cell of the Islamic State which, operating from Somalia, oversees the group’s financial and recruitment operations in central, eastern and southern Africa.
Bofin noted that this flow of funding may have been affected by intensified 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 the beginning of 2025.
Against this backdrop, ISM is believed to have expanded its revenue streams, increasingly turning to kidnappings for ransom, extortion and activities linked to illegal mining, although there is no confirmation that these practices have fully replaced external funding.
“Kidnappings for ransom quadrupled in 2025, accounting for around 10% of all the group’s activity that year,” the analyst said during a webinar titled “Ransom, Gold and Spoils of War: The Islamic State in Mozambique’s New Cash Flow.” On the ground, these actions include setting up roadblocks to stop people, vehicles and goods—particularly on National Road N380, which links the south to the north of Cabo Delgado province—as well as the hijacking of vessels and crews along the coast.
In some cases, he added, civilians are abducted during attacks on villages and later released upon payment of ransoms.
These practices, according to the specialist, “have broader impacts on the local economy,” by restricting the movement of essential goods and hindering the delivery of humanitarian assistance in conflict-affected areas.
At the same time, ISM’s presence in areas of artisanal and small-scale mining of resources such as gold and precious stones increased significantly in 2025, amid rising international gold prices, which climbed by more than 60%.
Even so, Bofin clarified that there is no evidence that the group directly controls mining operations, with only indications of forced payments and the occasional seizure of gold and precious stones.
Regarding weaponry, ISM continues to rely primarily on the capture of weapons and ammunition during clashes with the Mozambique Armed Defence Forces (FADM), a recurring practice since the start of the insurgency that intensified throughout 2025.
Last year, the group was active in 16 of the 17 districts of Cabo Delgado province and also carried out operations in the neighboring provinces of Nampula and Niassa.
Cabo Delgado, a province rich in natural resources, particularly natural gas, has faced extremist attacks for eight years, since the first assault recorded on 5 October 2017 in the district of Mocímboa da Praia.
Source: Diário Económico
