The International Monetary Fund (IMF) has issued a warning regarding Mozambique’s fiscal and financing challenges, highlighting risks that could affect the country’s economic stability. The IMF notes that while Mozambique has made some progress in economic reforms, the nation faces rising debt levels, limited access to external financing, and vulnerabilities in public finances.
Officials stressed the need for prudent fiscal management, debt consolidation, and structural reforms to safeguard economic growth and maintain investor confidence. Key recommendations include improving revenue collection, prioritizing spending efficiency, and ensuring transparency in public sector borrowing.
Economists say that without careful action, Mozambique could encounter higher borrowing costs and tighter credit conditions, which may slow development projects and investment inflows. The IMF’s warning serves as a reminder of the delicate balance African nations face between stimulating growth and maintaining fiscal sustainability in a challenging global economic environment.