The Mozambican government expects to disburse approximately 50.3 billion meticais (US$780 million) this year to service its external public debt, according to the 2025 Annual Public Debt Report released by the Ministry of Finance.
Of the total projected amount, 38.6 billion meticais (US$598.9 million) is earmarked for principal repayments, while 11.6 billion meticais (US$180.7 million) covers interest payments. The bulk of resources will therefore be directed towards reducing the outstanding external debt stock.
The report states that ‘the predominance of principal amortisation in the projected debt service reflects the maturity profile of the external portfolio and demonstrates the importance of efficient liquidity management and financing needs throughout the fiscal year.’ The document notes that this structure demands greater predictability in revenue collection and resource mobilisation to ensure that financial obligations are met.
The distribution of payments projected for 2026 shows a concentration of obligations in January, March, July, and September. Of these, March and September will represent the periods of greatest financial pressure, together accounting for more than 14 billion meticais (US$217.9 million) in payments.
In 2025, total external public debt service amounted to 34.7 billion meticais (US$542.7 million), a decline of 39.03% from the 54.9 billion meticais (US$858.4 million) recorded in 2024. The reduction stemmed from lower principal amortisations, down 43.4%, and reduced interest payments, down 13.76%, partly associated with the temporary rescheduling of certain obligations.
Projections for the 2026–2030 period point to a significant increase in debt service costs from 2028 onwards. The peak is expected between 2028 and 2029, when annual payments could reach approximately 60.2 billion meticais (US$932.1 million), driven by the onset of amortisation on bonds issued in international capital markets.
The primary factor behind this projected rise is the amortisation of the MOZAM 2032 international sovereign bond. The operation is estimated at 56.2 billion meticais (US$870.7 million), with payments beginning in 2028. The report cautions that ‘the concentration of these payments reflects the relevance of the sovereign bond in the structure of future external debt service.’
Despite the anticipated increase in debt service costs, external debt sustainability indicators improved in 2025. The ratio of the Present Value of Debt to GDP fell from 33.1% to 29.6%, while the debt service-to-exports ratio declined from 10.4% to 7%, and the debt service-to-government revenue ratio dropped from 15.8% to 9.6%.
During the same period, external public debt arrears totalled 14.7 billion meticais (US$230 million), of which 12.8 billion meticais (US$199.4 million) relate to principal and 1.9 billion meticais (US$30.62 million) to interest. The figure also includes arrears owed to bilateral creditors that did not participate in the Paris Club Debt Relief Initiative, with the government continuing negotiations to establish sustainable settlement mechanisms.
Source: Diário Económico
Original article: https://www.diarioeconomico.co.mz/2026/08/05/economia/governo-preve-pagar-780-m-de-divida-externa-este-ano/
