By Semafor Africa
Photos: YouTube Screenshots
Mozambique is at growing risk of defaulting on its debt as political tensions over last year’s disputed election were heightened with the return of opposition leader Venâncio Mondlane to Maputo on Thursday.
The country’s economy has been devastated by months of deadly protests leading to the shutdown of critical industries including a graphite mine in northern Mozambique operated by Australian firm Syrah Resources that counts Elon Musk’s Tesla among its clients.
David Omojomolo, Africa economist at Capital Economics, told Semafor Africa there was an increasing risk of sovereign default as investors reacted negatively to the political uncertainty.
“We expected a slowdown or contraction of economic growth in Q4 2024, and if the present conditions persist, stagnation or further contraction in the coming months,” he said.
