Mozambique Clears IMF Debt as African Sovereigns Reduce Exposure

Mozambique has repaid its US$701 million debt to the International Monetary Fund, according to Standard Bank, marking a notable step in a broader trend of African sovereigns reducing exposure to multilateral lenders.

In a March 27 research note, Standard Bank’s Mozambique chief economist, Fáusio Mussá, cited IMF data indicating the country’s outstanding balance had fallen to zero. The repayment has reportedly led to the cancellation of a planned IMF mission in August, though neither Mozambique nor the IMF has issued formal confirmation.

The move follows recent warnings over Mozambique’s fiscal outlook. The IMF in February classified the country’s debt as distressed and unsustainable, while the World Bank cautioned that its economic trajectory could jeopardize US$50 billion in planned gas investments.

Mozambique’s foreign exchange reserves stood at approximately US$4.15 billion in January, near historic highs. Standard Bank estimates they could decline to US$3.5 billion following the repayment, amid continued arrears to other creditors.

Elsewhere, African economies are making similar moves. Nigeria repaid a US$3.4 billion IMF emergency loan in May 2025, originally secured during the COVID-19 crisis, while Namibia has reduced its IMF obligations significantly over the past year.

IMF data indicate that 45 African countries still hold outstanding balances, with several – including Nigeria, Botswana, and South Africa – no longer listed among debtor nations.