Mozambique said on Friday it hopes a recent International Monetary Fund mission will help clear the way for a new financial support programme, though the IMF indicated further economic reforms may be required before a deal can be reached.
The Finance Ministry said discussions could be followed by another IMF mission, possibly in November, to negotiate programme conditions and targets.
In a statement issued at the end of its Sept. 9-18 visit, the IMF said talks on reforms needed to pave the way for a Fund-supported programme would continue over the coming months.
Mozambique’s dollar-denominated bond due in September 2031 pared earlier gains following the IMF statement and was bid at 94.29 cents, according to Tradeweb data.
The IMF delegation, led by mission chief Pablo Lopez-Murphy, held meetings with Prime Minister Maria Benvinda Levi, Finance Minister Carla Loveira and central bank governor Felisberto Navalha.
Mozambique’s previous IMF programme ended early in April 2025, and negotiations over a new arrangement are expected to focus heavily on fiscal and structural reforms.
The IMF said economic activity in the southern African country remained subdued but was showing signs of recovery. Inflation was contained, while fiscal consolidation begun in 2025 was continuing, supported by spending restraint.
Mozambique continues to face a heavy debt burden that has been assessed by the IMF and World Bank as unsustainable.
The country’s financial difficulties stretch back to a 2016 hidden-debt scandal that severely damaged investor confidence and restricted access to international financing.
Delays to major natural gas projects, which had been expected to increase exports, government revenue and foreign currency inflows, have added to the pressure.
Mozambique earlier this year cleared its outstanding obligations to the IMF, a step analysts said could strengthen its position in negotiations for fresh financial support.
