Mozambique’s Debt Crisis: Trawling for Answers

Debt relief was granted to the government of Mozambique, less than two decades ago, and again this government finds itself unable to honour obligations to international creditors. Pending the publication of an audit of US$2 billion of borrowing by Mozambican companies afforded questionable sovereign guarantees, Africa Research Institute and Zitamar News convened a webinar with four expert panellists. This Briefing Note sets out the known details of the controversial loans to Mozambican companies and their ramifications for the government, the banking sector and international financial institutions. It then summarizes panellists’ perspectives on the debt, and how Mozambique and its creditors might extricate themselves from the crisis.