Mozambique to cut direct defence budget by 35% in 2025

Login

Register

http://www.clubofmozambique.com/

Mozambique to cut direct defence budget by 35% in 2025

2:54 CAT | 08 May 2025

File photo: Lusa

Mozambique will cut direct defence spending by 35% in 2025, to just over 20,673 million meticais (€285 million), according to the budget proposal being debated in parliament today.

According to the Economic and Social Plan and State Budget (PESOE) for 2025, this represents the equivalent of 4% of Mozambican gross domestic product (GDP) estimated for this year, compared to 6.3% (31,740 million meticais/€437.3 million) in 2024, and 6.1% (28,846 million meticais/€397.5 million) in 2023.

This cut in expenditure directly budgeted for defence despite terrorist groups having been active in Cabo Delgado since 2017, with recent attacks also in the neighbouring province of Niassa, although on a smaller scale compared to previous years.

With the departure almost a year ago of military personnel from the southern African countries that were supporting the fight against these armed groups, the Armed and Defence Forces of Mozambique (FADM) have gradually resumed responsibility for security on the ground, with support from a contingent from Rwanda and military personnel from Tanzania remaining.

In 2024 alone, at least 349 people died in attacks by Islamic extremist groups in northern Mozambique, an increase of 36% compared to the previous year, according to a study published by the Africa Centre for Strategic Studies (ACSS), an academic institution of the US Department of Defence.

The 2025 budget proposal also foresees a cut of around 19% in healthcare spending, down from 48,722 million meticais (€671.4 million) in 2024 to 39,517 million meticais (€544.5 million), in education, which will fall by 11.3%, from 82,264 million meticais (€1,133 million) to 72,935 million meticais (€1,005 million), and in public order and security, which will fall by 11% from 53,747 million meticais (€740.5 million) to 47,758 million meticais (€658.4 million).

General Public Services heading, which encompasses expenditure on different sectors, will grow by 33.5% this year to 243,947 million meticais (€3,363 million).

The Mozambican state has been operating month-by-month since the beginning of the year, following the general elections on 9 October. The new head of state, Daniel Chapo, was sworn in on 15 January and formed a government a few days later.

The proposed law on the 2025 PESOE is being debated from today in a plenary session at the Assembly of the Republic in Maputo, with approval guaranteed by the parliamentary majority of the Mozambique Liberation Front (Frelimo, in power).

The Mozambican government expects a GDP growth of 2.9% for 2025, an average annual inflation rate of 7%, exports of goods worth US$8,431 million (€7,379 million) and Gross International Reserves of US$3,442 million (€3,045 million), equivalent to 4.7 months of coverage for imports of goods and services, excluding megaprojects, according to PESOE.

State revenue for the entire year is expected to amount to more than 385,871 million meticais (€5,347 million), equivalent to 25% of the GDP, and total expenditure is set at 512,749 million meticais (€7,107 million), up 1.1% compared to 2024 and corresponding to 33.2% of the GDP, generating a budget deficit of 8.2%.

Source: Lusa