The World Bank is working with Mozambique to tackle the country’s mounting debt challenges, a senior bank official said, as its borrowing costs surge, highlighting pressure on its finances against a backdrop of heightened geopolitical risk.
The country is struggling to stabilise its economy, burdened by debt, weak growth and the effects of climate shocks. Hopes of a recovery hinge partly on the restart of major liquefied natural gas projects.
World Bank regional director for Mozambique Filly Sissoko said a debt sustainability analysis, drafted with the International Monetary Fund (IMF) and published in February, showed debt was not sustainable.
“The government is very well aware of this and working very closely to see how we can help…