MEFMI, IMF and World Bank Jointly Assist Mozambique to Develop a Medium-Term Debt Management Strategy and an Annual Borrowing Plan

From 20 to 31 March 2023, a joint MEFMI/IMF/World Bank Mission was in Maputo, Mozambique to assist the Government of Mozambique update its 2022 – 2025 Medium-Term Debt Management Strategy (MTDS) and develop an Annual Borrowing Plan (ABP) for 2023.

The mission also trained country officials on the use of the IMF/World Bank MTDS and ABP Analytical Tools. Officials were taken through debt data preparation and how to define stylised debt instruments to populate the MTDS analytical tool. They were also guided on how to come up with projections of market variables (i.e., exchange and interest rates). Further, participants were assisted to develop an ABP and subsequently an issuance calendar, based on the designed and preferred debt management strategy, using the ABP analytical tool.

A total of 18 officials attended the workshop, of which 72 percent were males. Officials were drawn from the Ministry of Economy and Finance’s National Directorate of Public Debt Management (front, middle and back offices) and the Directorate of Risk Management; the Institute for Management of State-Owned Enterprises (IGEPE). There was also participation of the Mozambique Stock Exchange as well as the Bank of Mozambique’s Financial Markets and Reserves Management Departments.  It is expected that the trained officials will use the skills and knowledge gained from the mission to review the debt management strategy against changes in macroeconomic, fiscal, and market variables, and the ABP periodically, going forward.

The mission comprised four (4) resource persons, namely Messrs Leandro P. Secunho and Roberto Lobarinhas from the World Bank, Mr. Tiviniton Makuve from the IMF-AFRITAC South, and Ms. Cristina Dimande of the MEFMI Secretariat.

By Cristina Dimande