The World Bank said on Monday that it plans to extend $6 billion in largely concessional funding to Mozambique over the next five years to back key public investment initiatives, as the country contends with mounting fiscal pressures and fresh debt concerns raised by the International Monetary Fund.
Fily Sissoko, the World Bank’s division director for Mozambique, noted that about $3 billion would come directly from the Bank’s resources, with an additional $3 billion expected to be leveraged through other channels.
He explained that the support package would be offered on highly concessional terms, with a significant portion provided as grants, aligning with the government’s broader development agenda.
Authorities are also seeking to attract a further $4 billion in private-sector investment.
Driving economic recovery
Mozambique’s Finance Minister, Carla Louveira, said the new cooperation framework is designed to strengthen macroeconomic and fiscal stability while helping to maintain the country’s recovery momentum.
Although there is renewed confidence linked to the restart of a major liquefied natural gas project by TotalEnergies, the IMF has cautioned that Mozambique continues to face obstacles, including delays in servicing debt and ongoing budget shortfalls.
The nation remains vulnerable to frequent climate-related disasters, with cyclones and flooding intensified by climate change placing additional strain on its economy.