https://en.sputniknews.africa/20250221/mozambiques-economy-sees-steepest-decline-in-seven-years-due-to-post-election-unrest-1070767382.html
Mozambique's Economy Sees Steepest Decline in Seven Years Due to Post-Election Unrest
Mozambique's Economy Sees Steepest Decline in Seven Years Due to Post-Election Unrest
Sputnik Africa
About a decade ago, Mozambique's status as one of Africa's fastest-growing economies faltered due to a $2 billion debt scandal that resulted in a default... 21.02.2025, Sputnik Africa
2025-02-21T17:32+0100
2025-02-21T17:32+0100
2025-02-21T17:32+0100
mozambique
economy
politics
east africa
protests
presidential election
sub-saharan africa
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Mozambique's economy experienced its largest contraction in at least seven years during the fourth quarter, as post-election protests disrupted business activities, the National Statistics Institute reportedly has said in an emailed statement.The GDP fell by 4.9% in the three months ending in December compared to the same period the previous year, which marks a sharp reversal from the previous quarter's 3.7% growth and exceeds the economic slump seen during the peak of the COVID-19 pandemic in 2020.The downturn was driven by widespread post-election protests following the contentious October 9 vote, which disrupted business activity and strained government revenues.These challenges have further exacerbated Mozambique’s existing debt problems, prompting S&P Global Ratings to downgrade the country’s local currency credit rating to CCC-, signaling a high risk of default.To address imminent maturities on local currency securities this year, the government is reportedly set to engage with commercial lenders for discussions on a potential swap auction. If this process resembles a distressed debt exchange, S&P may reclassify Mozambique’s credit status to "SD" (selective default).
https://en.sputniknews.africa/20250122/totalenergies-further-postpones-its-20-billion-lng-project-in-mozambique-report-says-1070312134.html
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mozambique, economy, politics, east africa, protests, presidential election
mozambique, economy, politics, east africa, protests, presidential election
Mozambique's Economy Sees Steepest Decline in Seven Years Due to Post-Election Unrest
Christina Glazkova
Writer / Editor
About a decade ago, Mozambique's status as one of Africa's fastest-growing economies faltered due to a $2 billion debt scandal that resulted in a default. This, along with an Islamic State-linked insurgency, has hindered economic activity and delayed $50 billion in natural gas projects from companies like TotalEnergies SE and ExxonMobil Corp.
Mozambique's economy experienced its largest contraction in at least seven years during the fourth quarter, as post-election protests disrupted business activities, the National Statistics Institute reportedly has said in an emailed statement.
The
GDP fell by
4.9% in the three months ending in December compared to the same period the previous year, which marks a sharp reversal from the previous quarter's
3.7% growth and exceeds the economic slump seen during the peak of the COVID-19 pandemic in 2020.
The downturn was driven by widespread
post-election protests following the contentious October 9 vote, which disrupted business activity and strained government revenues.
These challenges have further exacerbated Mozambique’s existing debt problems, prompting S&P Global Ratings to
downgrade the country’s local currency credit rating to CCC-, signaling
a high risk of default.To address imminent maturities on local currency securities this year, the government is reportedly set to engage with commercial lenders for discussions on a potential swap auction. If this process resembles a distressed debt exchange, S&P may reclassify Mozambique’s credit status to "SD" (selective default).
