Africa Monitor

Africa Monitor Intelligence

Mozambique: Costs of Conflict in Cabo Delgado Threaten Economy

Penalizing economic growth, the suspension of the Mozambique LNG project by the main operator, Total, in Cabo Delgado and the early conclusion of several contracts by the French multinational are also high risk factors for the state's finances.
The effects on the State's finances are considered especially serious, in particular due to the high public debt, the result of the crisis triggered by the “hidden debts” (AM Special Report 61). The external debt is estimated at more than 130% of GDP. The situation compromises the State's capacity to satisfy external commitments, and make the persistence of default likely. READ MORE