Mozambique’s external public debt recorded a reduction of around 0.6% last year, as a result of measures adopted by the Government to curb the country’s external borrowing, Finance Minister Carla Louveira announced on Saturday (31).
Speaking on Saturday in Maputo on Rádio Moçambique’s Linha Directa program, the minister explained that the decrease is mainly due to the Government’s focus on rationalizing public spending and limiting new hires and acquisitions.
“That is why the Head of State, in his inaugural speech, presented a set of reforms such as the procurement centralization and measures associated with spending rationalization, namely unnecessary contracts for goods and services,” said Carla Louveira, emphasizing that all levels of public administration — central, provincial, and district — must implement the containment measures.
According to the minister, the goal is to adjust the State’s expenditure structure to the real capacity for domestic revenue collection, reducing dependence on external borrowing instruments. “We must try to create an expenditure structure that is, broadly speaking, sustainable within our capacity to raise internal resources,” she added.
At the end of 2025, Mozambique’s external public debt stood at around 17 billion dollars, remaining one of the main challenges for public finances in a context of pressure on state finances and the need for greater budgetary discipline.
Source: Diário Económico
