Mozambique: Public debt interest rates fall as economic prospects improve

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Mozambique: Public debt interest rates fall as economic prospects improve

10:40 CAT | 28 Oct 2025

File photo: Lusa

The interest rates demanded by investors to trade Mozambique’s public debt maturing in 2031 fell on Monday to 11.09%, the lowest figure since 2022, signalling confidence in the economic development of the country.

According to financial news agency Bloomberg, Mozambique state bonds maturing in 2031 rose in value after Eni approved a $7.2 billion (€6.2 billion) liquefied natural gas project and TotalEnergies signalled that it is ready to resume work on a major development project in the province of Cabo Delgado, in the north of the country, withdrawing the ‘force majeure’ that had halted the project.

Debt yields fell 14 basis points to 11.09%, the lowest level since 2022, Bloomberg writes, noting that the debt issue attracted demand from investors seeking higher yields in a landscape where emerging market countries faced high financing costs.

Mozambique has three approved mega-development projects to explore the Rovuma basin’s LNG reserves, ranked among the largest in the world, off the coast of Cabo Delgado, including one by TotalEnergies (13 mtpa) and another by ExxonMobil (18 mtpa), which is awaiting a final investment decision, both on the Afungi peninsula.

So far, only Eni’s Coral Sul project has moved forward, and in early October, Coral Norte, offshore the province, was also secured. The rest are being developed onshore.

A study by the consulting firm Deloitte concluded that Mozambique’s LNG reserves represent potential revenues of US$100 billion (€86.2 billion) in 2024.

The partners in Area 4 of the Rovuma Basin, off Cabo Delgado, Eni, Empresa Nacional de Hidrocarbonetos (ENH), CNPC, Kogas and XRG signed, at the beginning of the month, the Final Investment Decision for that new US$7.2 billion (€6.2 billion) project, a copy of Coral Sul, also operated by Eni, which will double Mozambique’s LNG production to seven million tonnes per annum (mtpa) from 2028.

Since October 2017, the province has faced attacks claimed by movements associated with the extremist group Islamic State, which have caused more than one million displaced persons and 349 deaths in 2024 alone, according to data from the Africa Center for Strategic Studies, a US government institution that analyses conflicts in Africa.

Source: Lusa