Africa Monitor

Africa Monitor Intelligence

Mozambique: Indebtedness and Stagnant Tax Revenues Aggravate Economic Perspectives

The issuance of public debt securities is considered "exaggerated" by local financial observers, with the state debt quadrupling in this way in the last five years, contributing to the unsustainability of domestic public debt resulting from the issuance of treasury bonds (OT) and notes (BT), plus loans and finance leases.

The situation of technical bankruptcy of the State's business sector, sunk in debts and chronic deficits is aggravated by the volume of overdue debts to suppliers, estimated at more than USD 300 million. The biggest debt to suppliers is with the construction company China Hennan International Cooperation Group. READ MORE