The Mozambican government has hired the U.S. consulting firm Alvarez & Marsal to provide technical assistance in preparing a new public debt restructuring plan, according to Resolution 34/2025 of October 22, reported by Lusa.
The measure, approved by the Council of Ministers, was implemented through direct contracting and aims to develop a plan aligned with short- and medium-term fiscal consolidation goals. The consultancy will also support the formulation of the Public Debt Strategy for the 2026-29 period.
Headquartered in New York with a presence on multiple continents, Alvarez & Marsal is internationally recognized for its work in financial and corporate restructuring, having been involved in cases such as Lehman Brothers and Warnaco. The government’s decision comes amid growing concern about the trajectory of national public debt.
At the end of September, the Governor of the Bank of Mozambique, Rogério Zandamela, warned that state borrowing “cannot continue to grow”, emphasizing the urgent need for containment measures.
“Debt cannot keep growing. I know, and I am certain, that the Government is doing everything possible to contain this debt at reasonable levels so that it does not create problems for the economy. If it continues to grow to the point of reaching unsustainable levels, it could cause serious issues,” said Zandamela after the bimonthly Monetary Policy Committee meeting.
The governor also highlighted the negative impact of domestic debt on economic growth, noting that its expansion “cannot be infinite” and requires concrete actions regarding revenue, expenditure, and other budgetary adjustments.
The most recent assessment by the Monetary Policy Committee pointed to increasing pressure on domestic debt, currently estimated at 454.4 billion meticais ($6.1 billion), an increase of 38.8 billion meticais ($522.2 million) compared to December 2024.
According to available data as of June 30, total public debt reached a record $14.4 billion.
For 2026, the government expects a fiscal deficit exceeding 6% of GDP, with ongoing measures to control the wage bill and stabilize debt service costs, without compromising public investment needed to stimulate economic growth.
“Consolidation efforts should not overlook the need to create conditions for investment allocation, allowing the economy to continue growing,” stated the Secretary of State for Treasury and Budget on September 26 during a public address in Maputo.
Source: Diário Económico
