IMF Holds Talks With Mozambique on Potential Fund-Supported Programme

The International Monetary Fund has begun discussions with Mozambique on reforms that could pave the way for a Fund-supported programme as the country faces fiscal and external imbalances, tight financing conditions and disruptions linked to climate and energy.

An IMF team led by Pablo Lopez-Murphy, the Fund’s mission chief for Mozambique, visited Maputo from September 9 to 18 to assess recent economic developments and discuss potential reforms.

The team met Prime Minister Maria Benvinda Levi, Finance Minister Carla Loveira and Felisberto Navalha, governor of the Bank of Mozambique, alongside senior government and central bank officials.

The IMF also held discussions with members of the Parliamentary Budget Commission, private-sector representatives, civil society organisations and development partners.

Mozambique’s economy continues to face significant macroeconomic pressures, including large fiscal and external imbalances and difficult financing conditions, according to Lopez-Murphy. Adverse climate shocks and energy-related disruptions have added to the challenges.

Economic activity remains subdued but is showing signs of recovery, while inflation has remained contained, the IMF said. Fiscal consolidation that began in 2025 has also continued, supported by restraint in government spending amid limited financing options.

The Fund said Mozambique’s medium-term economic potential remained significant, particularly from the development of its natural gas resources.

“The mission welcomed the authorities’ commitment to advancing reforms,” Lopez-Murphy said. “Continued policy efforts will be needed to address fiscal and external imbalances, restore debt sustainability, and create the conditions for stronger, more inclusive and resilient growth.”

The IMF said discussions on the reforms required to pave the way for a potential Fund-supported programme would continue in the coming months.

Source: FSX Business News