Mozambique: IMF mission could open the way for new loan program

Mozambique’s Finance Ministry said on Friday that it hoped a mission of the International Monetary Fund, which ended this week, would pave the way for a?new support?programme. The fund suggested?that more reforms might be needed first.

In a press release, the ministry stated that a possible follow-up mission could take place, possibly in November to discuss program conditions and goals.

In a statement at the end of its mission, the IMF stated that discussions on "the reforms necessary to pave a way for a Fund supported program" will continue in the upcoming months.

Data from Tradeweb showed that the dollar bond of Mozambique maturing in September 2030 pared its gains following the IMF statement. It was now bid at 94.29cents.

The mission from September 9 to 18, led by IMF mission head Pablo Lopez-Murphy met with Prime Minister 'Maria Benvinda Levi', Finance Minister Carla Loveira, and Central Bank Governor Felisberto Navelha.

The previous IMF program for the resource-rich nation of Southern Africa ended in early April 2025. Talks about a new agreement are expected to be based on economic reforms.

The fund stated that the economic activity is "subdued" but showing signs of improvement, with inflation being contained and fiscal consolidation which began in 2025 continuing.

Mozambique faces a heavy debt load that has been deemed unsustainable by the World Bank and International Monetary Fund.

The company's troubles date back to the 2016 scandal of hidden debt, which ruined investor confidence and curtailed access to financing.

The situation has gotten worse due to delays in major natural gas projects, which were expected to boost revenue, exports and government finances.

Analysts said that Mozambique's case for new funding would be strengthened if it cleared its outstanding obligations with the IMF.

(source: Reuters)