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The International Monetary Fund (IMF) said on Friday it discussed Mozambique’s request for a fund-supported arrangement as it concluded a week-long mission to the heavily indebted African country.
Mozambique is facing a “challenging economic situation”, said Pablo Lopez Murphy, who led the IMF team that visited Maputo from June 8 to 12.
“Economic activity is gradually recovering from a contraction in 2025, but growth remains subdued,” he said.
The IMF staff team told Reuters its objective was to review recent economic developments, discuss the authorities’ plans to restore fiscal and debt sustainability, and explore how the fund can best support Mozambique in future.
The IMF reclassified the Southern African country’s debt as unsustainable in February, citing a deterioration in public finances.
The country’s debt problems date back to a 2016 hidden-debt scandal, which wrecked investor confidence and curbed access to funding.
Reuters
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