The Mozambican President, Daniel Chapo, defended that growing domestic public debt cannot compromise financing to businesses, warning of the need for more efficient management of public resources. His statements were made during the inauguration of the new governor of the Bank of Mozambique, Felisberto Dinis Navalha, in a context where domestic public debt increased 16% during the first half of 2026, totaling approximately 551 billion meticais, equivalent to approximately 7.5 billion euros.
Chapo challenged the Ministry of Finance, in coordination with the central bank and the financial system, to improve mechanisms for public liquidity management to reduce avoidable financing needs and the cost of domestic borrowing. He underlined that fiscal discipline does not begin only with the decision to spend or contract debt, but also with how existing public resources are managed, arguing that borrowing should not be resorted to without first ensuring integrated, efficient and rational management of available liquidity.
The new governor of the Bank of Mozambique, Felisberto Dinis Navalha, succeeds Rogério Zandamela after 10 years and two terms, at a time when the total public debt stock reached 1.12 billion meticais. Chapo also pointed out that the structural response to exchange rate challenges and the shortage of foreign exchange lies in producing more and exporting more, diversifying exports and attracting productive investment, emphasizing that the structural transformation of the economy is fundamental to solving these problems.
