Mozambique’s government approved the Medium-Term Fiscal Framework (CFMP) for the 2027–29 period during the 19th session of the Council of Ministers, held on Tuesday, 7 July. The instrument defines macroeconomic and fiscal projections, fiscal strategy, and overall public expenditure ceilings for the next three years, serving as the basis for the preparation of the Economic and Social Plan and State Budget (PESOE).
According to Council of Ministers spokesperson Inocêncio Impissa, the CFMP 2027–29 aims to strengthen discipline, predictability, and transparency in the management of public finances. The framework establishes a prudent and realistic fiscal outlook, with a focus on macroeconomic stability and the sustainability of public accounts.
Also during the 19th session, the Cabinet approved the Public Finance Management Strategy 2026–35 (EGFP), which aims to modernise the management of public resources, making the system more transparent, efficient, and results-oriented. The strategy provides for improved utilisation of public funds, strengthened fiscal balance, and enhanced delivery of services to citizens.
At the same session, the government approved a resolution authorising the payment of US$50 million to guarantee the supply of liquid fuels, a measure designed to ensure continuity of fuel supply across the national territory.
Inocêncio Impissa explained that the decision is intended to reduce the impact of fuel shortages on consumers and economic activity. Payments to external suppliers will be made through a bank account held by the Ministry of Finance at the Bank of Mozambique, with funds made available in advance by the entity responsible for the request.
The Council of Ministers also approved the Implementation Plan for Law No. 11/2026, of 30 June, relating to the revision of the decentralisation package.
During the same session, the government reiterated that the 2026 Global Post-Flood Recovery and Reconstruction Plan is valued at approximately US$1.6 billion, equivalent to 102 billion meticais.
According to the spokesperson, the resources will be directed towards addressing damage caused by the floods, which affected housing, public and private infrastructure, agriculture, and other key sectors of the national economy.
Inocêncio Impissa also noted that recent climate events, combined with major political and economic developments recorded in the country, contributed to a downward revision of the GDP growth forecast, which was cut from 2.8% to 0.59%.
“The 2026 Global Post-Flood Recovery and Reconstruction Plan aims to promote a resilient, inclusive, and sustainable recovery of affected areas, ensuring socioeconomic stabilisation, the restoration of livelihoods, and the strengthening of capacity to respond to future disasters,” he said.
Source: Diário Económico
Original article: https://www.diarioeconomico.co.mz/2026/07/08/economia/executivo-aprova-cenario-fiscal-de-medio-prazo-para-2027-29/
