The Ministry of Finance has acknowledged that Mozambique is “facing liquidity pressures” in the short term but assures that the country’s medium-term economic outlook “remains structurally solid,” while work continues on a program with the International Monetary Fund (IMF).
“Mozambique is consolidating the foundations of a modern, diversified and competitive economy. Along this path of transformation, the authorities recognize that the country faces short-term liquidity pressures,” a statement cited this Friday, February 20, by Lusa said.
In the document, the Ministry stated it had taken note of the publication this week of the IMF’s latest consultation report on the country and its conclusions, clarifying that the treasury pressures stem from “urgent development needs, reduced external support, and an unprecedented series of exogenous shocks.”
“Nevertheless, the medium-term economic outlook remains structurally solid. The gradual recovery of the economy reflects fiscal reforms and a set of policy measures aimed at boosting the productive sector,” it stressed.
The institution added that, “as highlighted by the IMF, liquefied natural gas (LNG) projects — namely the resumption of the TotalEnergies megaproject in Cabo Delgado — are expected to generate substantial revenues from 2030 onward, acting as a catalyst for integrated value chains and industrial platforms central to the country’s economic transformation.”
Still in its reaction to the IMF consultation report, the Ministry of Finance confirmed “that macroeconomic stability can be ensured through a targeted reform program aligned with national priorities, including proactive public debt management to strengthen the fiscal position, reduce refinancing risks and minimize debt servicing costs, thereby freeing resources for social development and the structural transformation of the economy.”
The Government insists on a new IMF-supported program to anchor the reform package, catalyze partner financing and protect the most vulnerable populations, alongside structural reforms aimed at unlocking Mozambique’s long-term growth potential and consolidating prudent public resource management frameworks.
“We remain committed to constructive dialogue with all stakeholders, including creditors and development partners, as we move forward in this process of economic transformation,” it concluded.
The Executive therefore acknowledges immediate financial constraints but seeks to frame them as temporary and linked to external factors and the public investment cycle. The focus now is on securing a new IMF program and managing debt until gas revenues begin to flow, which are seen as decisive for the structural rebalancing of public finances. Until then, the pace of reforms and the State’s financing capacity will be key to determining whether macroeconomic stability can be maintained during the transition period.
Source: Diário Económico
