Debt service and public-sector wages are set to absorb nearly all of the country’s tax and fee revenue, leaving only 4% for essential priorities including healthcare, education and road construction, according to a new Ministry of Finance report.
Public debt surpassed an estimated 75% of Gross Domestic Product (GDP), reaching $17.4 billion in the second quarter of 2026, with foreign and domestic liabilities accounting for roughly equal shares. Against this backdrop, the 2027 fiscal report identifies several major risks to the economy, including climate impacts, the crisis in Cabo Delgado, losses at state-owned enterprises and currency devaluation.
