By Emmanuel Nduka Obisue
The World Bank has pledged to provide Mozambique with $6 billion in mostly concessional financing over the next five years to support public investment projects and stabilise the country’s strained finances.
The funding package, announced on Monday, comes as Mozambique grapples with mounting fiscal pressures and recent warnings from the International Monetary Fund over worsening debt dynamics. The Southern African nation has faced debt-servicing delays and persistent budget deficits, complicating its economic recovery efforts.
Fily Sissoko, the World Bank’s division director for Mozambique, said the institution plans to deploy about $3 billion from its balance sheet while mobilising an additional $3 billion in largely grant-based, highly concessional financing. He added that the bank is also targeting a further $4 billion in private sector investment to complement public funding.
Mozambique’s Finance Minister, Carla Louveira, described the new partnership framework as a critical step toward macro-fiscal consolidation and long-term recovery. According to her, the support will help the government strengthen public finances while advancing key development priorities.
The renewed financial backing comes amid cautious optimism over the restart of French energy giant TotalEnergies’ $20 billion liquefied natural gas (LNG) project in northern Mozambique, which had been suspended following a jihadist attack. The project is widely seen as central to boosting state revenues and restoring investor confidence.
Beyond fiscal challenges, Mozambique continues to battle recurring climate shocks, including devastating cyclones and floods intensified by climate change, further straining public resources.
With the new $6 billion commitment, the World Bank aims to bolster economic resilience, strengthen public infrastructure, and support Mozambique’s path toward sustainable growth.
