Mozambique: 45% of 2026 Budget Revenues Mobilized in the First Half

The Mozambican state mobilized 45% of the projected budget revenues for the 2026 fiscal year during just the first half of the year, according to Financial Afrik. The exact amount collected was not specified, nor was the institution behind the figure. Mozambique traditionally derives its revenues from custom duties, VAT, and income tax, now supplemented by royalties from the offshore gas exploitation in Cabo Delgado: the Coral Sud FLNG project, operated by Italy's Eni, has been producing liquefied natural gas since late 2022, while TotalEnergies is preparing to resume its Mozambique LNG project, suspended since 2021 due to the armed insurgency in the region. Collecting nearly half of the annual target by the end of the first semester eases pressure on the Public Treasury to finance current expenditures and debt service, and reduces the need to resort to external borrowing or support from the International Monetary Fund, with which Maputo has maintained an Extended Credit Facility program since 2022. This performance comes as Mozambique, led since January 2025 by President Daniel Chapo, seeks to restore international creditors' confidence following the "hidden debts" scandal revealed in 2016, which led to the suspension of direct budget aid by several donors. The revenue recovery also reflects a favorable base effect linked to the resumption of activity in the northern part of the country and stable natural gas prices, two external factors that directly weigh on the tax revenues of an economy still dependent on its extractive resources.