• The World Bank plans to mobilize up to $6 billion for Mozambique over five years.
• The institution has already secured nearly $3 billion and seeks an additional $3 billion in grants and concessional financing.
• The IMF estimates Mozambique’s public debt at around 90% of GDP in 2025.

The World Bank plans to mobilize up to $6 billion in financing for Mozambique over the next five years under a new partnership focused on macroeconomic stabilization, public investment financing and support for economic recovery. Fily Sissoko, World Bank Director for Mozambique, announced the initiative during a press briefing.

Sissoko said the institution has already secured nearly $3 billion and plans to raise the remaining $3 billion primarily through grants and concessional loans. The World Bank designed the initiative as part of a broader strategy to strengthen fiscal balance and support the development priorities of a country facing structural financial constraints.

An Economy Still Under Severe Structural Constraints

Mozambique continues to operate in a fragile macroeconomic environment marked by high public debt, limited access to external financing and significant vulnerability to climate shocks. Cyclones and floods regularly damage infrastructure and disrupt economic activity.

The International Monetary Fund (IMF) estimated that public sector debt reached around 90% of gross domestic product in 2025, with nearly 60% held by external creditors. In its latest assessment, the IMF stated that “despite some positive developments — notably low inflation, adequate foreign exchange reserves, the resumption of a major LNG project and removal from the Financial Action Task Force (FATF) grey list — challenges remain considerable.”

In parallel with public sector support, the World Bank Group aims to mobilize nearly $4 billion for the private sector to stimulate productive investment and job creation. In this context, the IMF forecasts economic growth of 3.5% in 2026 following an estimated 2.5% expansion in 2025, signaling a gradual recovery that remains dependent on large-scale investment projects and improvements in the macroeconomic framework.

Moutiou Adjibi Nourou