Mozambique: Medium-Term Debt Management Strategy is crucial for macroeconomic credibility, says CTA

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Mozambique: Medium-Term Debt Management Strategy is crucial for macroeconomic credibility, says CTA

5:20 CAT | 11 Nov 2025

File photo: AIM

The Confederation of Mozambican Business Associations (CTA) believes that the Medium-Term Debt Management Strategy for 2025-2029, which was recently approved by the government, is crucial for macroeconomic credibility and for improving the business environment in the country.

The Medium-Term Debt Management Strategy is a document aimed at “defining a prudent framework for public debt management, meeting the State’s financing needs, balancing costs and risks, in order to ensure the credibility of economic policy and debt sustainability in the medium and long term.”

The strategy has been drawn up at a time when public debt, particularly domestic debt, is continuing to grow every month, to make up for the shortfall in tax collection on the one hand, and the decline of foreign aid on the other.

According to the Bank of Mozambique, in its role as regulator of the national financial system, the pressure on domestic public debt has continued to worsen, and now represents over 40 per cent of the total debt stock, standing at about 454.3 billion meticais (70.8 billion dollars at the current exchange rate), representing an increase of 38.7 billion meticais, when compared to December 2024.

In a statement, the CTA says that the strategy is a milestone in the consolidation of fiscal policies, as it enhances transparency and helps restore the confidence of economic agents, creating conditions to attract private investment and boost the national economy.

According to the organization, these reforms contribute to the recovery of Foreign Direct Investment (FDI), also driven by the implementation of the new Investment Law and Foreign Exchange Law.

“We acknowledge the government’s ongoing efforts to modernize public management and fiscal consolidation, considered essential factors in ensuring predictability and security for investors”, said the CTA document. “The effective implementation of the reforms under way is decisive for the transformation of the political and economic framework and for generating tangible benefits for businesses and citizens”.

The CTA also reaffirmed its commitment to collaborating with the government within the framework of the Public-Private Dialogue (DPP), with a view to identifying and resolving obstacles that affect the business environment, in order to promote a more competitive, productive and job-creating economy.

The CTA also noted that preparations are underway for the 20th edition of the Annual Private Sector Conference (CASP), which will be guided by the motto “Reform to Compete: Moving Towards Economic Recovery”, with an estimated 1.5 billion dollars in new investment projects expected to be mobilized.

Source: AIM