World Bank Targets $6bn Concessional Financing Package for Mozambique

Mozambique is set to receive major concessional funding as debt risks and reform pressures intensify.

The World Bank plans to provide $6 billion in mostly concessional financing to Mozambique over the next five years, according to division director Fily Sissoko. The package includes about $3 billion from the bank’s balance sheet and an additional $3 billion expected to be mobilised.

The support comes as the International Monetary Fund warns of worsening debt dynamics in the Southern African nation. While optimism is growing around the restart of a major liquefied natural gas project and Mozambique’s removal from the Financial Action Task Force grey list, risks remain.

The IMF cited high public debt, security concerns, climate-related shocks and institutional fragility as key downside threats. The concessional financing is expected to support fiscal stability, development projects and economic reforms.