The Mozambican government reduced its direct debt to the Brazilian state by 11.1%, bringing it to $25.6 million by the end of September. According to the public debt report, this amount represented 0.3% of the country’s total external debt.
The document cited by Lusa recalls that in the second quarter of 2025, the amount was around $29 million, highlighting that the reduction occurred in the period leading up to Brazilian President Lula da Silva’s visit to Mozambique in November.
Given this scenario, the report reveals that on November 26, the Brazilian Senate’s Economic Affairs Committee (CAE) approved the authorization of the “Restructuring Agreement” for another component of the debt, valued at US$143 million, essentially relating to Mozambique’s arrears with the National Bank for Economic and Social Development (BNDES).
“This is a proposal from the Presidency of the Republic, from 2024, presented as a matter of urgency by Senator Fernando Farias to be converted into a draft resolution. The decision comes after Lula da Silva’s visit to the country, where he promised to relaunch the relationship between the two nations, especially in the economic area,” it describes.
Thus, it is expected that the first installment of US$6.7 million will be paid by Mozambique 60 days after the signing of the future agreement, followed by 10 semi-annual installments of the remaining amount, with an interest rate of 3.6% per annum. “If payment is not made on time, default interest will be 1% above the interest rate,” it states.
The text adds that Mozambique’s debt to Brazil consists of arrears from two operations, the first being remaining credits from the Debt Restructuring Agreement signed by the two countries in 2004.
“Due to the economic crisis caused by the COVID-19 pandemic, several countries, in a multilateral agreement, suspended debt payments. In the case of Mozambique, the request for suspension was submitted in 2020,” the same information reads, adding that the second operation covers the financing of the construction of Nacala International Airport in the province of Nampula, in the north of the country.
Last year, the governments of Mozambique and Brazil signed nine legal instruments aimed at strengthening bilateral cooperation, during Brazilian President Lula da Silva’s fourth visit to the country.
These instruments relate to civil aviation, legal training, diplomacy, research and resilient agroforestry production, governance and socioeconomic development, training, promotion of entrepreneurship, international cooperation in teaching, health and education research, and promotion of investment and exports.
Lula da Silva promised to strengthen the partnership with the country. “We have a bilateral relationship that is now 50 years old, which we are celebrating with more work, reinforcing the friendship between our countries,” he said in a message posted on his official social media account shortly after being received at the Presidency of the Republic in Maputo by the head of state, Daniel Chapo.
Trade between Mozambique and Brazil exceeded US$100 million in 2024, according to data released by the Confederation of Economic Associations of Mozambique (CTA), which considers that trade is still below its potential.
