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Mozambique battles debt crisis as IMF, World Bank talks intensify

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Mozambique is currently undergoing intense negotiations with both the World Bank and the International Monetary Fund (IMF), to address critical macroeconomic imbalances, stabilize its spiralling public debt, and unlock fresh international funding. Confronted by major economic shocks-including destructive climate-driven floods and regional disruptions from the Middle East conflict, the country's economic growth slowed sharply to an estimated 0.5%.


However, a marginal recovery to 0.9% growth is projected, heavily reliant on the highly anticipated resumption of major liquefied natural gas (LNG) projects. The country's  $2 billion  US dollars "hidden debt" (or "tuna bond") scandal, remains the central bottleneck in its relations with the World Bank and the IMF.


Joining us to discuss this further is Dr Egas Daniel, Senior Country Economist at the International Growth Centre (IGC) in Mozambique.

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