Mozambique’s Economy Is Failing – the Tough Policy Choices That Need to Be Made Urgently

Mozambique is not in total crisis – but it is faltering. There has been no currency crash, no hyperinflation, no bank run. But over the past decade the main indicators of the country’s economic health have severely eroded.

An IMF assessment in early 2026 was remarkably blunt: public debt is unsustainably high, the external balance of payments is weak, and policy makers have limited options. Since then, tensions in the Middle East have further disrupted supply chains and dramatically raised global…