The International Monetary Fund published a staff statement after a mission to Maputo, saying it had held initial discussions with the Mozambican authorities on policies to restore macroeconomic stability and debt sustainability and on the authorities’ request for a Fund-supported arrangement. The statement describes an economy recovering gradually from a contraction in 2025, but still facing weak growth, higher inflation, persistent fiscal and debt vulnerabilities, wider external imbalances and continued foreign exchange shortages. According to the IMF team, fiscal imbalances narrowed in 2025 under tight financing conditions, but the overall position remains fragile. Weaker exports and higher imports linked to large investment projects widened external imbalances, while FX shortages continued to weigh on imports and activity. The IMF also said the war in the Middle East had raised fuel and fertilizer prices at a time when Mozambique was already dealing with weak growth and recent climate shocks, increasing downside risks to growth and upside risks to inflation. Discussions with the authorities focused on improving the fiscal position while protecting vulnerable groups, strengthening the monetary and exchange rate policy framework, preserving financial stability, improving governance and supporting private sector-led growth. IMF staff said they will return to Maputo in the coming months to continue discussions on the authorities’ request and their policy plans.
International Monetary Fund2026-06-12
International Monetary Fund holds initial talks with Mozambique on a possible Fund-supported arrangement amid fiscal and FX pressures
The International Monetary Fund said it has begun discussions with Mozambique on a possible Fund-supported arrangement after a mission to Maputo. The IMF described weak growth, rising inflation, fiscal and debt vulnerabilities, wider external imbalances and persistent FX shortages. Staff will return in the coming months to continue talks on the request and policy plans.