During the period from January to September, Treasury Bill replacements amounted to a total of 198.968,9 million meticais (2.707 million euros), with 1.788,9 million meticais (24.3 million euros) in interest paid during this period, stated a report by the Ministry of Finance.
“Resulting in a net funding value of expenses amounting to 27.922,3 million meticais [380 million euros],” the document notes.
The Mozambican government has set a limit of 505 billion meticais (6.871 million euros) for the issuance of Treasury Bills in 2025, nearly double of 2024, with more than half allocated for debt replacement.
“During the fiscal year of 2025, the use of Treasury Bills will have a maximum limit of 505,000,000,000 meticais,” states decree no. 109/2025 of the Ministry of Finance, dated October 24. This was previously reported.
For 2024, the government had set a limit of 275 billion meticais (3.742 million euros) for the issuance of short-term Treasury Bills. The 2025 State Budget was only approved in May, in parliament, due to general elections held in October 2024.
Of the total emissions for this year, 160 billion meticais (2.177 million euros) are stipulated to address the “treasury deficit,” and the remaining 345 billion meticais (4.695 million euros) for “substitutions.”
Mozambique’s debt decreased during the third quarter to 1.068 trillion meticais (14.5 billion euros), according to previous data from the Ministry of Finance. It noted that 41.6% of the total debt stock as of September 30 pertained to domestic debt, including advances from the Bank of Mozambique and the issuance of Treasury Bonds and Bills, with the remaining 58.4% representing external debt.
This debt volume compares to the renewed record at the end of the second quarter when Mozambique’s debt stock reached 1.072 trillion meticais (14.6 billion euros) on June 30, according to previous Ministry of Finance data, marking a 0.1% increase from the previous quarter.
It signifies a 0.9% decrease in three months, mainly due to the amortization of Treasury Bonds, according to the government.
Mozambique’s Minister of Finance, Carla Loveira, stated on October 29 that public debt sustainability is “one of the greatest challenges” for Mozambique’s economy, with ongoing “reforms” for sustainable management.
“One of the greatest challenges our economy faces is the sustainability of public debt. It is our obligation, as state finance managers, to ensure that every borrowed meticais is applied efficiently, productively, and responsibly,” Carla Loveira said.
The minister elaborated that a set of reforms is underway to ensure public debt sustainability, including developing a Public Debt Management Strategy covering the period from 2025 to 2029, revising the regulation that establishes the legal regime of the capital markets, and “identifying specialized advisory on public debt,” she reported.
“These actions aim to strengthen the mechanisms for managing, controlling, and monitoring national public debt levels, ensuring public debt sustainability, and creating more fiscal space for financing productive infrastructure projects with proven economic and social return,” she said.
