IMF Staff Concludes 2025 Article IV Mission to Mozambique
Economic activity in Mozambique is gradually recovering from the abrupt contraction recorded in the final quarter of 2024, while inflation pressures remain subdued. Growth is projected to stay moderate as factors such as limited funding availability, policy uncertainty, and foreign exchange shortages continue to restrain faster expansion. At the same time, government financing difficulties have become more pronounced. According to the mission, coordinated policy measures are essential to restore macroeconomic stability, address external imbalances, improve growth prospects, support job creation, and reduce poverty.
IMF Delegation Visit and Engagements
An International Monetary Fund team led by Pablo Lopez-Murphy, IMF mission chief for Mozambique, visited Maputo from November 12-21 for discussions under the 2025 Article IV Consultation. The delegation held meetings with Finance Minister Carla Loveira and Bank of Mozambique Governor Rogério Zandamela. The team also engaged with senior government and central bank officials, members of the Parliamentary Budget Commission, private sector representatives, civil society organizations, and development partners.
Statement from the IMF Mission Chief
At the conclusion of the visit, Pablo Lopez-Murphy stated that Mozambique is facing a complex macroeconomic environment. He noted that inflation remains contained and economic activity is gradually recovering from the social unrest that followed the October 2024 elections, although overall growth remains subdued.
He indicated that the economic outlook carries considerable uncertainty. He highlighted that the recent announcement by TotalEnergies regarding the resumption of its major LNG project could support medium-term growth prospects. He also pointed to Mozambique’s removal from the Financial Action Task Force grey list as evidence of progress in anti-money laundering and counter-terrorism financing efforts. These developments, he said, could help attract investment and bolster external financing.
However, he stressed that significant challenges persist. Elevated fiscal and debt vulnerabilities, including government arrears, continue to weigh on short-term growth. Foreign exchange pressures further heighten the difficulties. He warned that without decisive policy steps, these vulnerabilities could intensify, affecting macroeconomic stability and the population’s wellbeing.
Discussions during the mission focused on policies aimed at restoring macroeconomic stability and ensuring debt sustainability. Lopez-Murphy explained that a coordinated policy package, including urgent fiscal consolidation while safeguarding the vulnerable and poor, greater exchange rate flexibility, and structural reforms to strengthen governance and support private sector-led growth, would assist Mozambique in managing its challenges.
The IMF team expressed appreciation to the Mozambican authorities, civil society, and development partners for their candid and constructive engagement and cooperation throughout the mission.