{"id":24195,"date":"2026-02-24T18:30:55","date_gmt":"2026-02-24T16:30:55","guid":{"rendered":"http:\/\/jhb-webdevelopers\/channelafrica\/news\/mozambique-to-receive-6bln-world-bank-package-as-experts-warn-of-fiscal-risks\/"},"modified":"2026-02-27T16:34:55","modified_gmt":"2026-02-27T14:34:55","slug":"mozambique-to-receive-6bln-world-bank-package-as-experts-warn-of-fiscal-risks","status":"publish","type":"news","link":"https:\/\/www.channelafrica.co.za\/channelafrica\/news\/mozambique-to-receive-6bln-world-bank-package-as-experts-warn-of-fiscal-risks\/","title":{"rendered":"Mozambique to receive $6bln World Bank package as experts warn of fiscal risks"},"content":{"rendered":"
Finance Minister Carla Louveira said the funds will back key development priorities as the country grapples with mounting fiscal pressures.<\/div>\n
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The announcement comes as the International Monetary Fund (IMF) continues to warn about Mozambique\u2019s deteriorating debt dynamics and rising fiscal vulnerabilities. Earlier this year, the IMF declined further support due to concerns over public debt and governance, raising questions about the country\u2019s financial trajectory.<\/div>\n
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Speaking to Channel Africa on Tuesday, Policy and Research Advisor Helio Guiliche said the financing package should not be seen purely as a victory, despite government enthusiasm. \u201cMozambique\u2019s situation is not ideal. The terms of both internal and external debt are really bad,\u201d he said. \u201cPersonally, I do not think this is something to celebrate unless the terms are different from previous loans. Loans disguised as foreign aid can push the country further into stagnation.\u201d<\/div>\n
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Guiliche expressed scepticism about concessional financing, warning that decades of reliance on external loans have failed to generate sustainable economic transformation. \u201cSince independence, IMF and World Bank loans have contributed to the collapse of the industrial base. Today, Mozambique imports even basic goods. Fiscal and monetary policies have not delivered development,\u201d he said.<\/div>\n
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He linked these risks to broader political uncertainty, arguing that weak governance, corruption and lack of transparency could undermine the impact of the new funding. \u201cSustainability is one of the biggest worries. The country does not enjoy strong international credibility due to hidden debts and high corruption,\u201d he said.<\/div>\n
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If used responsibly, however, the funds could help stabilise an economy still recovering from debt distress, climate shocks and conflict\u2011related disruptions. Guiliche said agriculture, infrastructure and fisheries should be prioritised due to their capacity to generate revenue, create jobs and support long\u2011term diversification.<\/div>\n
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He added that Mozambique urgently needs policies that reduce its dependence on natural resources, strengthen food security and harness its youthful population. \u201cDiversification is key. The country must shift from a resource\u2011dependent model to one that produces enough to sustain itself,\u201d he said.<\/div>\n
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