Mozambique targets conclusion of new IMF program by year-end

The Mozambican government, through its Ministry of Finance, expects to conclude negotiations for a new financial assistance program with the International Monetary Fund (IMF) by the end of the year. A technical delegation from the IMF is currently in Maputo to establish the groundwork for a Technical Level Agreement, which would then be submitted for formal approval by the IMF Executive Board by the end of 2026.

The discussions focus on joining the Extended Credit Facility (ECF), a tool designed to support low-income countries. Finance Minister Carla Loveira noted that while the economy shows signs of recovery, the Treasury continues to face liquidity challenges. Improving budget execution and ensuring timely public debt payments remain priorities.

The IMF mission, led by Pablo López Murphy, is scheduled to meet with various ministries, the Bank of Mozambique, the private sector, and financial entities. The government expressed confidence in medium-term economic potential, driven by the resumption of Liquefied Natural Gas (LNG) projects and fiscal consolidation measures following Mozambique's removal from the FATF grey list.