Mozambique Government: Aims to Reduce Public Debt Service to 6% of GDP by 2029

Mozambique's government has set a target to reduce public debt servicing costs to 6% of GDP by 2029, with estimated expenses amounting to €1.69 billion in that year, according to the Medium-Term Fiscal Scenario (CFMP) 2027–2029 recently approved by the cabinet.

This development is significant for practitioners and businesses operating in Mozambique as it may impact the country's creditworthiness and borrowing capacity. A reduction in debt servicing costs could also lead to increased government spending on essential services, such as healthcare and education.

The relevant statutes and regulations governing public debt management in Mozambique include the Public Debt Management Law (Law No. 21/2014) and the Medium-Term Fiscal Framework Law (Law No. 13/2020). The CFMP is a key document that outlines the government's fiscal strategy for the next three years, including targets for reducing public debt servicing costs.

The Mozambican government has set ambitious targets to reduce its public debt burden, which currently stands at around 80% of GDP. Achieving this goal will require careful management of the country's finances and a commitment to fiscal discipline. Practitioners should monitor developments in this area closely, as changes in Mozambique's debt management policies may have implications for businesses operating in the country.