img images MOZAMBIQUE

Debt History

Mozambique’s public debt to GDP ratio was at its highest in 1999 – the earliest date for available data- at 131.2% but decreased to 36% in 2007. Two major reasons for this were fast growth and debt-forgiveness. First, Mozambique’s average growth rate from 1996 to 2015 was 8% per year, which was the highest in Africa – including due to a series of economic actions such as privatization of state-owned companies, higher government revenue raising by introducing value-added tax and customs service changes. Second, debt relief from various donors was forthcoming, as shown below,  including from China – disbursed over three different occasions.

Key Projections for 2022


Economic Growth

3.5 / 8

DR's Debt Transparency Index


Gross Debt Position % Of GDP


Budget balance 2021


Debt to GDP Ratio

However, Mozambique’s public debt to GDP ratio has continually increased over the past decade, reaching 120% in 2016 and stabilizing above 100% over the most recent five years. The reason it stabilised in 2016 was that the Mozambican government reported that it was responsible for more than US$2 billion in government-backed loans provided by state-owned defence and security companies during 2012-2014 that were not approved by the parliament or included in the national budget. This prompted the IMF and international donors to suspend further loans to the country.

In 2017, Mozambique’s debt interest payments were equivalent to 7.2% of total expenditure, yet the rate increased to 10% in 2018, more than twice the amount of total government expenditure in 2017 spent on the health sector. This could represent a high potential opportunity cost IF the projects being funded by loans are not helping to raise Mozambique’s citizen’s standards of living and/or generating a return.

The country is mid-range in the Debt Transparency Index because it has published a medium-term debt strategy but with limited access to government data. The country only produced a draft Freedom of Information Bill in 2005 and has not published any loan-related contracts.


Revenue and Budget Balance


Projected debt service to China vs Other creditors (USD Thousands)


Alongside the withdrawal of other creditors, China has become Mozambique’s largest official bilateral creditor at US$1.9 billion in 2019. Chinese debt in Mozambique’s debt portfolio has consistently increased over the past decade, with Chinese debt accounting for only 1.4% of Mozambique’s total external debt stocks in 2006 but increasing to 13% by 2017. In 2012, the rate was at a record high at 19%. According to the China Africa Research Initiative, China has at least 21 projects in Mozambique, mainly in the transport and agriculture sectors as well as in mining and government building construction. For example, in 2013, China lent US$416.5 million to Mozambique to finance the rehabilitation of the Beira-Machipanda road.

China Debt : GDP Ratio (%)

External Debt Stock to China vs. Other Countries (USD millions)

Mozambique has experienced slower growth in 2016 – 2017, alongside a decline in foreign direct investment and support from donors. In 2019, the growth rate dropped to 2.2%. However, the country has significant infrastructure financing needs in particular to ensure basic standards of living for the population and poverty reduction – especially in respect to access to electricity, the internet and road infrastructure is particularly limited. Given growth and domestic revenues, it is very unlikely Mozambique could manage this with domestic revenues, it will need to seek external support.

However, The IMF classifies Mozambique as already IN debt distress, due to high levels of debt, a large fiscal deficit, and low rates of economic growth. The Jubilee Debt Campaign makes a similar assessment, suggesting Mozambique is already in a debt crisis in 2020. And in terms of its creditworthiness, earlier in 2020 Fitch downgraded Mozambique’s government bonds to CCC – the equivalent of junk bonds – citing concerns over the country’s ability to continue servicing its debt.

External Debt



WRITERS   Joe Peissel and Yike Fu   GRAPHIC DESIGNER  Kayode Animashaun
and The Development Reimagined Team

Statement on use of data:

This debt guide uses a compilation of data from the IMF World Economic Outlook, the World Bank, the AfDB, Trading Economics, Jubilee Debt Campaign, China Africa Research Initiative for Chinese loans, Christoph Trebesch et al. for China Debt Stock Database, DR’s dataset for debt cancellation and COVID spending, as well as the data from countries’ government websites (if applicable).

Health and Well being choices


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People are doing to support their fitness

During the month of January, health and fitness is top of mind for people setting resolutions for a healthy new year. Google searches for fitness peak at the beginning of the year and according to data from the International Health, Racquet, and Sportsclub Association (IHRSA), 10.8 percent of all health club members join their gyms in January.

38 %

Home Workout

9 %

Buy Equipment

7 %

Fitness App

People plan to do at work when
restictions are lifted


Avoid Handshackes and Hug


Limited time spent in mettings


Plan to work more from home


Limite time in public places


Limit visite to supermarket


Do more Online Shopping


Covid-19 Cases

It is a long established fact that a reader will be distracted by the readable content of a page when looking at its layout.


Month on Month

Global Corona virus Impact and Implications

COVID-19 cases crossed the 15-million mark globally this week, with South Africa replacing Peru among the top five worst affected countries.

  • US
  • Brazil
  • India
  • Russia
  • South Africa
  • Peru

Countries Spend On Their Health Systems





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