Maputo, Feb 23 - The World Bank is preparing to extend roughly $6 billion in predominantly concessional financing to Mozambique across the next five years, the institution's country division director said on Monday.
Fily Sissoko, who leads the World Bank division covering Mozambique, Madagascar, Mauritius, Seychelles and Comoros, laid out the bank's plan in clear terms. "We have a balance sheet of around $3 billion on the bank side, and we20 9re hoping to mobilise another $3 billion. So that20 9s a total of $6 billion on the bank side, which is very concessional," Sissoko said.
The financing package is described as largely concessional, reflecting terms designed to be more favourable to the borrower than market-rate loans. The World Bank's intent is to combine internal resources with external mobilised funding to reach the $6 billion target over the five-year period.
At the same time, the International Monetary Fund has signalled concern about Mozambique's fiscal trajectory. The IMF warned last week that the country faces deteriorating debt dynamics, a development that could complicate efforts to stabilise public finances even as new financing is arranged.
There is, however, a measure of economic optimism tied to two recent developments. Observers point to the resumption of a major liquefied natural gas (LNG) project and Mozambique's removal from the international Financial Action Task Force's 'grey list' as positive factors for the country's outlook. The IMF, while noting those positives, also emphasised several downside risks.
The IMF drew attention to the weight of public debt on the country's finances and flagged additional vulnerabilities including security challenges, susceptibility to natural disasters, and institutional fragility. Those risks, the IMF cautioned, could undermine the benefits of renewed energy investment and improved international compliance status.
The World Bank's planned financing and the IMF's assessment together frame a mixed picture: meaningful concessional support is intended to back Mozambique's recovery and development, even as structural and external risks persist. How those funds are deployed, the pace at which mobilised resources are secured, and the country's ability to manage debt and security pressures will determine the net effect of the announced package.