Mozambique's economic week was defined by three major developments: the state's placement of more than 45 billion meticais in Treasury bonds since January, the launch of a new International Monetary Fund mission in Maputo, and a sharp widening of the trade deficit in the first half of the year. Together, these events underscore persistent challenges around state financing, macroeconomic stability, and the country's external accounts.
The Mozambique Stock Exchange (BVM) disclosed that the government has placed more than 45 billion meticais through ten Treasury bond issuances since the start of the year. The most recent operation, conducted in August, raised 5.2 billion meticais through the tenth series of the 2026 Treasury bond programme (OT-2026-S10).
According to the issuance prospectus, the operation was conducted via direct subscription and was intended to securitise supplier debt. The bond carries a three-year tenor, maturing on 10 August 2029, with a fixed annual interest rate of 8.5% throughout its term.
When combined with the nine previous issuances since January, the total amount placed in Treasury bonds exceeded 45 billion meticais, equivalent to approximately 616 million euros. All operations were executed through the BVM.
An IMF delegation has begun a ten-day mission in Maputo to assess the conditions required for negotiating a new financing programme for Mozambique. Led by Pablo Lopez Murphy, the mission is expected to hold meetings with the government, the Bank of Mozambique, the private sector, and financial institutions.
Discussions will focus on the country's macroeconomic situation, ongoing reforms, and the conditions for a potential programme under the Extended Credit Facility. According to the Ministry of Finance, the visit takes place at the government's request and follows on from the process initiated after the closure of the previous programme agreement.
The mission will also assess compliance with recommendations made by the IMF in June, when a separate team visited Maputo to discuss measures aimed at restoring macroeconomic stability and debt sustainability. 'This visit is part of the long-standing cooperative relationship between the Mozambican state and that international financial institution,' the Ministry of Finance stated.
The current negotiations trace back to April 2025, when the government and the IMF decided not to proceed with the remaining reviews of the then-active Extended Credit Facility programme and instead opted to discuss a new agreement. Approved in May 2022, the previous programme envisaged financing of approximately US$468 million, of which Mozambique received around US$343 million across four disbursements.
Mozambique's trade deficit more than doubled in the first half of the year, reaching US$89 million, even as the current account deficit fell by nearly 39%. Data from the government's balance of payments report covering January to June show that the deterioration was driven primarily by rising imports, while exports remained broadly flat.
According to the Ministry of Finance, exports exceeded US$1.8 billion while imports reached US$1.9 billion. In the first half of 2025, the trade deficit had stood at US$43 million, meaning the imbalance more than doubled over the period under review.
Exports from large-scale projects grew by 0.5%, holding at approximately US$1.5 billion. Outside these major projects, exports fell by 2%, from US$390 million to US$382 million, while imports rose 2.4% to US$1.9 billion. Between January and June, exports corresponded to 21.97% of the annual target, and imports to 20.34%.
Source: Diário Económico
Original article: https://www.diarioeconomico.co.mz/?p=539766
