The Ministry of Finance has warned that Mozambique’s public debt could reach 76.9% of Gross Domestic Product (GDP) in 2026, while the average economic growth is projected at 4.2% for the period 2026–28.
These projections are included in the 2026 Fiscal Risk Report, released on Thursday, the 16th, by the Ministry of Finance. The document reveals that Mozambique’s public debt remains well above internationally recommended prudential limits, requiring greater restraint and discipline in the management of public finances.
During the Dissemination Seminar of the 2026 Fiscal Risk Report, it was also highlighted that domestic debt doubled between 2020 and 2024, reflecting growing pressures on public accounts. The ministry emphasized the urgent need to strengthen budgetary discipline to avoid future risks to fiscal sustainability. Key risks identified in the report include the wage bill, contingent liabilities of public companies, natural disasters, and the vulnerabilities of the social security system and local municipalities. Three public companies – Moçambique Telecom (TMcel), Caminhos-de-Ferro de Moçambique (CFM), and Electricidade de Moçambique (EDM) – account for most of the financial risks, representing significant potential obligations for the State.
The report further notes that, although Mozambique maintains a positive economic growth trajectory, factors such as volatility in international markets, inflationary pressures, and external shocks could compromise fiscal stability and the sustainability of public debt. To mitigate these risks, the report proposes measures such as strict control of public sector hiring, strengthening revenue collection, and diversifying the tax base. It also suggests the creation of innovative financial mechanisms, such as sovereign funds and parametric insurance, aimed at addressing climate and budgetary shocks.
At the opening of the seminar, Albertina Forquilha, Permanent Secretary of the Ministry of Finance, emphasized that the report “is not just a technical document, but an invitation to action and joint work between the government, the private sector, civil society, and development partners, to build a Mozambique that is fiscally resilient, economically strong, and socially just.”
The report reinforces the Government’s commitment to transparency and good governance, serving as a tool for planning and evidence-based fiscal policy formulation. The ceremony was attended by representatives from the Assembly of the Republic, the Administrative Court, public and private institutions, civil society, and development partners.
Source: Mozambique News Agency (AIM)
