MAPUTO, May 27– The Mozambican government has approved the use of billions of meticais from accumulated oil and gas revenues to fund reconstruction efforts following post-election unrest and recent natural disasters, officials said.
The decision was announced on Tuesday after a meeting of the Council of Ministers in Maputo, where the government approved amendments to the 2026 Economic and Social Plan and State Budget to be submitted to parliament.
Government spokesperson Inocencio Impissa told a press briefing that the revised budget incorporates 3.57 billion meticais (about 56 million U.S. dollars) in additional domestic resources generated from petroleum and natural gas production between 2022 and 2025.
According to the government, the funds had been held in reserve while authorities finalized legal and financial mechanisms governing the management of hydrocarbon revenues.
Impissa stressed that the money does not come from Mozambique’s Sovereign Wealth Fund, which is established to safeguard part of the country’s gas earnings for future generations, adding that only the state’s share of hydrocarbon revenues would finance the revised spending plan.
According to Impissa, the additional resources will mainly support the reconstruction of public infrastructure damaged during post-election demonstrations in 2024 and 2025, as well as roads, buildings and facilities affected by floods and cyclones.
Mozambique has faced mounting fiscal pressure in recent months as authorities sought to respond to political instability, disaster recovery needs and growing demands for public services.
The spokesperson said the revised budget aims to accelerate the restoration of critical infrastructure and reinforce socioeconomic resilience in affected communities.
Under the revised framework, domestic revenue is expected to rise from 442.9 billion meticais to 446.5 billion meticais, while overall public spending will increase to 524.2 billion meticais, equivalent to 32.1 percent of the country’s gross domestic product.
During the briefing, Impissa also addressed reports of a possible visit by the International Monetary Fund to Mozambique, saying any future negotiations with international lenders would take place “from a position of greater flexibility” for the country. (Namibia Daily News / Xinhua)
