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Mozambique is seeking the restoration of direct World Bank budget support as an International Monetary Fund (IMF) team visits Maputo to evaluate the country’s macroeconomic stabilisation plans.
Finance Minister Carla Louveira announced the initiative on Tuesday during simultaneous high-level visits from both institutions.
The IMF delegation will remain in the capital until June 12 to review fiscal sustainability and explore future funding options.
The IMF’s arrival coincided with a World Bank signing ceremony where officials concluded five financing agreements worth $450 million for social, agricultural, and educational projects.
These funds represent a portion of a larger $10 billion World Bank partnership framework.
Mozambique is actively trying to revive direct budget assistance, which the bank suspended a decade ago following a major hidden debt scandal.
Louveira stated that the World Bank will unlock the budget support programme once Mozambique hits specific benchmarks regarding debt sustainability and financial integrity.
President Daniel Chapo recently lobbied for aid in Washington to help the nation counter severe economic pressures.
Recent climate-induced floods and global economic spillovers from the Middle East conflict have heightened the urgency of these financial negotiations.
