Debt and gas crises threaten Mozambique’s economy

Significance

There is some optimism these investments may now proceed, but the delays are likely to prove significant.

Impacts

• Insecurities related to the return of over 800,000 displaced persons in Cabo Delgado will persist due to unclear reconstruction plans.
• Fiscal constraints will undermine efforts to reduce poverty levels, which remain highly elevated.
• With the benchmark interest rate remaining at 18.9% as of September, private-sector access to credit will remain highly constrained.