World Bank Lines Up $10bn Financing Package for Mozambique Economic Recovery
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The World Bank plans to inject $6 billion of predominantly concessional financing into Mozambique’s public investment projects over the next five years, with division director Fily Sissoko announcing an additional $3 billion mobilisation target alongside $921 million from the IDA21 replenishment. Finance Minister Carla Louveira described the framework as essential for macro-fiscal consolidation and sustained recovery.
The package splits into $6 billion public funding—mostly grants—and $4 billion IFC-led private sector support, addressing acute fiscal strains flagged by the IMF in its recent review. Debt service delays, persistent deficits, and climate shocks have battered public finances, exacerbated by frequent cyclones and floods worsened by climate change.
Optimism centres on TotalEnergies’ $20 billion Mozambique LNG project relaunch in Cabo Delgado after lifting force majeure from 2021 Islamic State-linked attacks. TotalEnergies and ExxonMobil recently issued a joint tender for maritime services anticipating 400 annual LNG shipments from Afungi Peninsula, though Total seeks a 10-year extension to recoup $4.5 billion shutdown costs.
Sissoko emphasised the concessional terms support government development strategy while de-risking private inflows critical for LNG scale-up and economic diversification. The funding arrives as Maputo races to capitalise on Africa’s potential largest gas hub despite northern security challenges.
