The rating agency Fitch acknowledges that the suspension of support from the United States Agency for International Development (USAID) to Mozambique has contributed to worsening the foreign currency shortage in the country, given that disbursements from the agency represented about 3% of the Gross Domestic Product (GDP).
According to Fitch, in its most recent assessment of Mozambique, the shortage of foreign currency in 2025 has intensified partly due to the drop in external funding to the Government, including the suspension of USAID, which disbursed 37 billion meticais (586 million USD) in 2024 for priority projects in health and education.
The definitive closure of USAID, announced on July 1st this year by the new United States Government led by Donald Trump, resulted in the loss of around 2,500 jobs in Mozambique, according to government data. The Minister of Labour, Gender and Social Action, Ivete Alane, acknowledged the situation as a “problem” for the economy, despite the lack of detailed official estimates. In its August assessment, Fitch maintained Mozambique’s credit rating at CCC, the last level before financial default, further highlighting that the increase in the mandatory conversion of export revenues to local currency—from 30% to 50%—should help ease pressure on the foreign currency shortage. Additionally, the agency points to expectations of a new program with the International Monetary Fund (IMF) by the end of the year.
The Bank of Mozambique is implementing measures to improve liquidity in the foreign exchange market by redistributing available foreign currency to better meet the needs of importers, exporters, and investors. Central bank governor Rogério Zandamela stated that these measures include reducing the daily retention limits for foreign currency acquired by banks, aiming to improve public access to foreign currencies. The Confederation of Economic Associations (CTA), the country’s largest business association, warned in February about the persistent shortage of foreign currency in the banking market, which affects key sectors such as health, aviation, fuel, and food imports, thereby complicating business operations.
Source: Lusa
