Mozambique charts solid path to economic growth recovery

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Mozambique charts solid path to economic growth recovery

4:31 CAT | 29 Oct 2025

Photo: Conselho dos Serviços Provincias de Representação do Estado de Maputo

Mozambique’s finance minister, Carla Loveira, stated today that performance indicators show a “solid path” to “economic growth recovery” in the country, following the contraction experienced after the October 2024 elections.

Speaking at the opening of the Coordinating Council of the Ministry of Finance in Maputo province, Minister Loveira recalled the most recent data on budget execution for the third quarter, noting a slight increase in revenue and a decrease in expenditure on a year-on-year basis.

She added that although data for the first half of 2025 “point to a cumulative economic contraction of 2.4%”, budget projections indicate “economic growth of 2.9% in 2025, an economic acceleration of 3.2% in 2026, and an average of 4.4% for the period from 2026 to 2028”.

“These indicators show the existence of a solid path for the resumption of economic growth. The ongoing reforms in the public finance sector, coupled with the gradual recovery of production and the growth of strategic sectors such as energy, agriculture, natural gas and infrastructure, project a promising, sustainable and inclusive economic growth horizon,” said Minister Loveira.

She pointed out that the priority is “to ensure that this growth translates into macroeconomic stability, inflation control, fiscal consolidation and improved living conditions for Mozambicans”.

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Mozambican state spending fell 15.8% in the third quarter to 314,264 million meticais (€4,216 million), compared to the same period in 2024, the government announced on Tuesday, following a review of budget execution.

The expenditure incurred was equivalent to 61.3% of what was projected for the entire year, compared to 360,713.2 million meticais (€4,839 million) in the same period of 2024.

The Mozambican economy registered year-on-year contractions in Gross Domestic Product (GDP) in the last quarter of 2024 (-4.9%), the first quarter of 2025 (-3.9%) and the second quarter (-0.9%), as a result of the social unrest following the general elections of 9 October.

In her address to the Coordinating Council on Wednesday, Minister Loveira highlighted the signing of guarantee agreements between the manager of the new Mutual Guarantee Fund and Mozambican financial institutions, “marking the beginning of the provision of bank guarantees in the order of US$120 million (€103 million) to support the financing of Micro, Small and Medium Enterprises [MSMEs] and to promote a more inclusive and participatory economy”.

“This measure reinforces our commitment to modern, digitised and efficient management of public finances, ensuring that economic growth benefits all regions and social groups in the country,” Loveira said.

The minister of finance also acknowledged that the “national macroeconomic context has proven challenging, marked by internal and external shocks resulting from adverse factors”.

This was “due to persistent climate shocks, terrorism plaguing some districts of Cabo Delgado province, the impact of international geopolitical tensions, fluctuations in international prices, and the demands of economic reconstruction following post-election tensions”, she said.

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