According to a report by the Ministry of Finance, 68.9% of the target of 339.2 billion meticais (4.61 billion euros) for tax revenue estimated by the government for 2025 has been achieved, which also falls below the 235.5 billion meticais (3.2 billion euros) collected from January to September 2024.
Taxes constituted 88.5% of all current revenue obtained by the Mozambican state, which amounted to 254.1 billion meticais (3.46 billion euros) over nine months in 2025.
VAT remains one of the most significant taxes, bringing in 54.9 billion meticais (746 million euros) over nine months, a decrease of 5.9% year-on-year. This is behind corporate income tax (IRPC), which generated 77 billion meticais (1.05 billion euros), an increase of 2.4%, and personal income tax (IRPS), which accounted for 48.8 billion meticais (663 million euros), up by 6.5%.
The Minister of Finance of Mozambique, Carla Loveira, stated on October 29 that performance indicators show a “solid path” of “economic growth resumption” in the country, following the contraction observed after the October 2024 elections.
The minister recalled the latest data from the third quarter budget execution, notably a slight increase in revenue and a decrease in expenditure year-on-year.
Loveira added that although data from the first half of 2025 “indicates a cumulative economic contraction of 2.4%”, budget projections suggest “economic growth of 2.9% in 2025, an economic acceleration of 3.2% in 2026, and an average of 4.4% for the period from 2026 to 2028”.
“Ongoing reforms in the public finance sector, along with the gradual resumption of production and the growth of strategic sectors such as energy, agriculture, natural gas, and infrastructure, project a promising, sustainable, and inclusive economic growth horizon,” said Loveira.
The minister further noted that the priority is to “ensure that this growth translates into macroeconomic stability, inflation control, fiscal consolidation, and improved living conditions for Mozambicans”.
Mozambique’s state expenditure fell by 15.8% in the third quarter, to 314.3 billion meticais (4.27 billion euros), compared to the same period in 2024, the government announced following a budget execution review.
The Mozambican economy contracted in the last quarter of 2024 (-4.9%), the first quarter of 2025 (-3.9%), and the second quarter (-0.9%) due to social unrest following the general elections in October 2024.
