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“In June 2025, sovereign risk remained at a severe level. The persistence of sovereign risk at this level stems from pressure on public debt,” reads the Bank of Mozambique’s financial stability bulletin, issued semi-annually.
Mozambique’s sovereign risk was at a “severe level” at the end of the first half of the year due to pressure from public debt, according to a report released by the country’s central bank on Friday, 12 December 2025.
“In June 2025, sovereign risk remained at a severe level. The persistence of sovereign risk at this level stems from pressure on public debt,” reads the Bank of Mozambique’s financial stability bulletin, issued semi-annually. The document added that the ratio of government credit to total credit “remained at a severe level, at 44.84%, compared to 46.01% in December 2024”.
“On the other hand, the ratio of public debt to GDP [Gross Domestic Product] remained at a highrisk level, rising from 71.79% to 73.81% between December 2024 and June 2025,” the document states.
Mozambique’s Prime Minister, Benvinda Levi, said in parliament on 20 November that the government planned to reduce the state’s borrowing requirements by increasing revenues and implementing tax reforms.
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Benvinda Levi reiterated that solutions were being adopted to “improve the quality of debt data in terms of recording, servicing, monitoring and analysing its management” to achieve “greater fiscal transparency”.
