Mozambique is weighing the possibility of asking China to restructure its US$1.4 billion debt as the country reels from severe economic disruption following violent post-election unrest. President Daniel Chapo confirmed that the government is open to rescheduling or even seeking forgiveness of its debt with China—the country’s biggest bilateral creditor.

The gas-rich southeastern African nation experienced back-to-back economic contractions after disputed elections in October 2024 sparked protests, leaving hundreds dead and causing widespread destruction of commercial infrastructure. The unrest slashed public revenues and intensified the government's challenge in meeting its debt obligations.

China’s Role and Debt Sustainability

China currently holds 14% of Mozambique’s external public debt. While not confirming formal talks with Beijing, President Chapo acknowledged that some bilateral creditors had shown interest in providing relief, suggesting that China could be approached next. “Rescheduling or even forgiveness of the debt we have with our largest bilateral creditor is not an outlandish idea,” Chapo said.