By the end of 2025, the government had settled approximately $275 million in debts owed to the private sector as part of a fiscal consolidation strategy aimed at ensuring the sustainability of public spending, according to the Mozambique Information Agency (AIM).
The information was released by Finance Minister Carla Louveira during a public speech in Maputo, in which she explained that the amount paid corresponds to a substantial part of the total liabilities identified, estimated at around US$473.8 million.
According to the minister, approximately US$195.8 million remains to be validated, whose commitments were made outside the formal planning channels and are still awaiting confirmation from the Inspectorate-General of Finance. Without this validation, they cannot be entered into the budget system or settled.
Carla Louveira assured that, despite the pressures on public finances resulting from the weight of the wage bill, climate shocks, and constraints on revenue collection, the fiscal situation remains under control. The minister highlighted the strengthening of expenditure control mechanisms, progress in payments to suppliers, and the implementation of ongoing structural reforms.
The Minister of Finance also mentioned the contribution of the monetary policy conducted by the Bank of Mozambique, noting that the normalization of the reference interest rate, currently in single digits, has created more favorable conditions for financing the economy, both on the credit and deposit sides.
State personnel expenditure continues to account for the largest share of the State Budget. To contain this burden, the Executive has adopted strict measures, such as limiting new hires, controlling overtime and subsidies, and correcting irregularities detected in the implementation of the Single Salary Scale (TSU).
Among the control mechanisms, the implementation of biometric proof of life stands out, covering both active employees and pensioners, allowing the payroll to be cleaned up and eliminating undue situations.
In response to allegations of illegal charges in the release of public funds, the minister indicated that oversight and anti-corruption systems had been strengthened, notably with the creation of a hotline and an electronic reporting platform, in coordination with the Public Prosecutor’s Office.
Regarding the payment of the 13th salary for 2026, Carla Louveira confirmed that the first phase, corresponding to 40% of the amount, has already been completed, covering around 370,000 employees, pensioners, and members of the Defense and Security Forces. The second phase will be carried out after the payment of current salaries, by the end of February.
The minister acknowledged delays in capital transfers to local authorities, explaining that these are partly due to a shortfall of around US$504.5 million in revenue collection, in a context where certain fixed expenses remained at the levels provided for by law.
Regarding the impact of the recent floods in the central and southern regions of the country, Louveira said that the government has been mobilizing contingency lines, the disaster fund, and support from partners such as the World Bank and the African Development Bank, with a view to ensuring a swift response and the resumption of economic activity, without the need to resort to an amending budget.
Finally, the minister highlighted the progress made in the process of creating the Development Bank of Mozambique, whose legal and institutional framework should be completed later this year, following a national public consultation. The new institution is expected to play a decisive role in promoting productive investment and accelerating the country’s economic growth.
