Browsing: S&P Global Ratings

Mozambique's public debt
  • Mozambique’s public debt is expected to drop below 100% in 2023, boosted by the country’s improving economic growth and higher gas revenue
  • S&P Global Ratings states Mozambique’s ability to service its rising debt hinges on TotalEnergies SE’s liquefied natural gas project, which has stalled due to terrorism
  • TotalEnergies is investing billions in its gas project located in the Cabo Delgado province of Mozambique

Mozambique’s external public and publicly guaranteed debt surged from 61% of GDP in 2016 to 104% in 2018, as undisclosed liabilities were exposed. This led to an unbearable debt service burden, causing Mozambique to default on its debt in 2016. Consequently, credit rating agencies lowered the sovereign’s ratings to selective or restricted default, while the World Bank and the IMF reclassified Mozambique’s external debt as “in distress.”

The revelation of the “hidden” loans had a significant impact on Mozambique, leading to a prolonged economic downturn. The country’s …