IMF Begins Talks on New Support Programme for Mozambique

June 13, 2026

Mintesinot Nigussie

The International Monetary Fund (IMF) has started discussions with Mozambique on a potential Fund-supported programme as the country grapples with weak growth, rising inflation pressures and persistent external financing constraints.

An IMF mission led by Pablo López Murphy visited Maputo from June 8 to 12 to assess recent economic developments, review the outlook and engage with authorities on policy options to stabilise the macroeconomic environment.

In a statement at the end of the visit, López Murphy said Mozambique’s economy was recovering gradually from a contraction in 2025, but growth remained subdued while inflation had picked up from moderate levels.

He said fiscal imbalances had narrowed in 2025, supported by tight financing conditions, though underlying debt and fiscal vulnerabilities remained. External pressures, he added, had widened over the same period due to weaker exports and higher imports linked to large investment projects, while foreign exchange shortages continued to constrain economic activity.

The IMF also pointed to rising global risks, including higher fuel and fertiliser prices linked to geopolitical tensions in the Middle East, alongside climate-related shocks affecting domestic output.

“These adverse developments pose additional downside risks to growth and upside risks to inflation,” López Murphy said.

Discussions between the IMF and Mozambican authorities focused on measures to restore macroeconomic stability and improve debt sustainability. Policy priorities included strengthening fiscal discipline while protecting vulnerable groups, reinforcing monetary and exchange rate frameworks, safeguarding financial stability, and advancing governance reforms to support private sector-led growth.

The IMF said the talks included Mozambique’s request for a Fund-supported arrangement. Further engagement is expected in the coming months as the Fund team returns to Maputo to continue discussions.