World Bank Forecasts Higher Prices in Mozambique

According to the institution’s latest Africa Economic Update, inflation in Mozambique is expected to rise from 4.4% to 7.5% this year.

In practical terms, higher inflation means that goods and services may become more expensive, increasing pressure on household budgets.

The World Bank places Mozambique among the countries in Sub-Saharan Africa where inflation is expected to rise by more than three percentage points.

At the same time, Mozambique’s economy is projected to grow by only 0.6% in 2026, following a contraction of 0.2% in the previous year.

The report also raises concerns about public debt. Mozambique was reclassified in February as being in debt distress due to accumulated payment arrears and the weight of public debt.

Public debt could reach around 94.6% of Gross Domestic Product by the end of this year and exceed 100% in 2027, according to projections cited in the report.

Mozambique paid around 700 million US dollars to the International Monetary Fund by the end of March, allowing talks on a possible new support programme to resume.

However, the World Bank says there is still no defined framework for debt restructuring, while some domestic debt payments continue to be postponed and replaced through the issuance of new securities.

Across Sub-Saharan Africa, economic growth is expected to reach 4.3% in 2026, up from 4.1% in 2025.

The World Bank revised its growth forecasts upwards for 35 of the 47 countries analysed in the region.