Disbursements of external loans to the country fell by 2.9% in 2024, amounting to $534.3 million (34.1 billion meticais), with more than half allocated to the public sector, according to data from the central bank, cited on Monday, June 23, by Lusa.
According to a report on Mozambique’s 2024 balance of payments from the Bank of Mozambique, this figure contrasts with the $550 million (35.1 billion meticais) disbursed in 2023—a decrease “primarily driven by a 7.5% drop in external debt contracting by other sectors.”
The document explains that “the public sector continued to lead external disbursements to Mozambique last year, with $285.8 million (18.2 billion meticais), a 1.6% increase compared to 2023, mainly for project loans and a small portion, $2.3 million (146 million meticais), for on-lending agreements.” “This growth was driven by an increase in multilateral credits,” the report notes.
Meanwhile, the private sector received $248.5 million (15.8 billion meticais), a 7.5% reduction compared to 2023, with $51 million (3.2 billion meticais)—a 73.9% year-on-year drop—allocated to the energy sector. Loans to companies in the energy industry were intended to support the national strategy to diversify electricity production sources, while those in the financial sector were aimed at promoting rural activities.
The financial sector secured $106.4 million (6.7 billion meticais) in disbursements, while the industrial sector received $74.1 million (4.7 billion meticais), among others, according to data from the central bank.
Source: DE
