Mozambique signed 17 external financing agreements in the first half of the year, in the form of grants and loans, totalling US$891.69 million, more than in the whole of 2025.
Mozambique signed 17 external financing agreements in the first half of the year, in the form of grants and loans, totalling US$891.69 million, more than in the whole of 2025.
Data from the Ministry of Finance shows that these agreements, signed between January and June 2026, were financed mainly through grants, which accounted for 96.6% of the total, equivalent to US$861.35 million (€729.9 million). The remaining US$30.34 million (€25.7 million) relates to loan agreements, equivalent to 3.4% of the total.
“The resources mobilised are intended to finance strategic projects in the areas of energy, transport, education, water supply, social protection, rural development and emergency response, benefiting various sectors of the State,” the report adds.
The World Bank was the main financier of the agreements signed during the first half of the year, providing US$751.3 million (€636.8 million) in grants, equivalent to 84% of all external financing mobilised.
Among the largest commitments was additional financing of US$200 million (€169.5 million) for the Project to Accelerate the Transformation of Access to Sustainable and Clean Energy in Mozambique, which forms part of a regional programme covering several countries in East and Southern Africa.
The World Bank also provided US$150 million (€127.1 million) for a skills for employment and economic transformation programme, US$120 million (€101.7 million) for social protection and economic resilience, and US$100 million (€84.7 million) for the sustainable rural economy programme.
The African Development Bank (AfDB) was the second-largest financial partner during this period, with grants totalling US$110.05 million (€93.3 million), including projects linked to the Nacala Multimodal Road Corridor, the response to flooding in Maputo and Gaza provinces, and the Energy for All programme.
The report also identifies two loan agreements signed during the first half of the year. The first is a US$20 million (€16.9 million) loan from the Arab Bank for Economic Development in Africa (BADEA), intended to finance the construction of two secondary schools in Tete and Nampula provinces.
The second is a US$10.34 million (€8.8 million) loan granted by the African Development Bank for the construction of the Mueda–Negomano Road in Cabo Delgado province.
The volume of financing contracted in the first half of the year already exceeds the value of all grant agreements signed throughout 2025.
According to data previously released by the Ministry of Finance, Mozambique signed 13 grant agreements last year, worth a total of US$828.6 million (€721 million), below the US$891.69 million (€755.7 million) now committed in just six months.
Despite the high volume of agreements signed, the financial execution of external grants has faced difficulties in recent years.
Grants actually received by Mozambique fell by half in 2025, for the second consecutive year, totalling 23,846 million meticais (€325 million), after already declining by around 50% in 2024 to 42,186 million meticais (€575 million).
The Government had previously justified this reduction by citing “the low level of disbursements by partners for the implementation of investment projects”.
In 2025, external grants accounted for just 40.9% of the annual forecast, while external loans totalled 6,478 million meticais (€88 million), equivalent to 21.6% of the target set for the year.
According to budget execution data, State revenue was the main source of financing for public accounts in 2025, accounting for 76.8% of the resources mobilised, followed by domestic loans, at 7.9%; external grants, at 5.2%; and external loans, at 1.4%.
Source: Lusa