Mozambique faces €1.17bn state debt as Portugal fast-tracks €500m credit line

Portugal is moving to fast-track a €500 million credit line intended to support Portuguese companies operating in Mozambique. João Ferreira, Portugal's Secretary of State for the Economy, indicated that the mechanism may be operationalized in phases to allow funds to reach companies while full implementation procedures continue.

Separately, Mozambique's private sector is facing significant financial strain due to state payment delays. The Confederation of Economic Associations of Mozambique (CTA) reported that debt owed to the private sector for public works has reached 86 billion meticais (approximately €1.17 billion). CTA President Álvaro Massingue called for more predictable certification and payment mechanisms to prevent business failures and reduce the financial costs currently being absorbed by contractors.