LUSA 05/06/2026

Lusa - Business News - Mozambique: Government owes suppliers €171 million at end of 2025 – minister

Maputo, May 5, 2026 (Lusa) - Mozambique’s finance minister, Carla Loveira, acknowledged on Tuesday that the state accumulated €171.3 million in supplier debt by the end of 2025, and she expects to settle the amount in 2026, depending on treasury availability.

Speaking in parliament to answer MPs’ questions, the minister confirmed that on 31 December 2024, supplier debt under "unpaid expenses" totalled 31.2 billion meticais (€417.5 million). This fell to 12.8 billion meticais (€171.3 million) at the end of 2025.

The government is paying this debt according to the treasury plan after it moved into 2026, Carla Loveira said. She added that the government paid 11.2 billion meticais (€149.8 million) of the current financial year's debt by April.

This included 4.7 billion meticais (€62.9 million) for goods, services and public works. The remaining amount covered 3.9 billion meticais in "other debt service liabilities" and 1.6 billion meticais (€21.4 million) in current transfers.

“As financial resources are mobilised, the budgeted unpaid debt will be settled gradually. Debt not paid in 2026 must be rescheduled for payment in the 2027 PESOE [Economic and Social Plan and State Budget],” she said. To ensure greater transparency and integrity in public spending, the government is implementing measures "to mitigate potential acts of corruption."

These include a hotline for reports managed by the finance ministry and the Public Prosecutor’s Office, as well as holding "officials and citizens identified in illicit acts related to supplier debt payments accountable."

"It is important to clarify that, beyond the debt recognised and registered in the system, there is a potential for other debts incurred by sectors without budget coverage. For these cases, the government, through the finance ministry, is finalising a strategy for their regularisation," Loveira said.

She explained that the strategy will require a circular to collect information on debts incurred between 2018 and 2025, the General Finance Inspectorate’s (state audit body) validation of the data, and the definition of the settlement model and implementation schedule.

"Alongside the process of regularising potential debt, the government will introduce strict measures to prevent sectors from committing to expenditure without budget cover," the finance minister concluded.

PVJ/LYT // ADB.

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