According to Standard Bank, Mozambique has cleared its $701 million debt to the International Monetary Fund (IMF).

The payment settles Mozambique’s loan with the Washington-based lender and closes out its outstanding balance. It also led to the cancellation of a planned IMF mission to the country in August, although the Fund has not released an official statement. Mozambique had initially been expected to continue repayments through 2029, but that schedule has now been brought to an end.

What makes this move notable is that as recently as February, Mozambique remained under IMF watch over debt sustainability concerns. The Fund had warned that the country’s debt was in distress and on an unsustainable path.

In March, the World Bank also raised concerns, stating that Mozambique’s current economic trajectory could place up to $50 billion in gas projects at risk.

Mozambique’s Early Repayment Decision

However, with Mozambique’s foreign exchange reserves close to an all-time high at the end of January, the government moved to clear the debt earlier than planned. Following the repayment, reserves are expected to decline from $4.15 billion to around $3.5 billion.

A Broader Trend Across Africa

Mozambique’s IMF debt repayment also reflects a wider pattern across the continent. In recent months, several African countries have taken steps to clear or reduce their IMF obligations.

Countries such as Nigeria and Namibia have recently moved in the same direction, reducing their exposure to IMF debt as part of broader economic adjustments.