The country's municipalities remain highly indebted. Between 2019 and 2022 the debt, mainly with suppliers, increased by around 10%.

The Ministry of Finance's Fiscal Risks Report indicates that with the exception of Matola, all the other 18 municipalities that took out multi-annual loans were unable to meet their repayment plans.

According to the report, which is quoted by the newspaper "O País", the failure to pay these debts as planned puts the financial sustainability of the municipalities at risk, to the tune of almost 1.3 billion Meticais between 2019 and 2022.

"In the period under review, total debt increased by 10%, influenced by the 159.8% increase in debt to suppliers. However, commercial debt, with an average weight of 62.5%, is a cause for concern," says the document quoted in the newspaper publication.

Despite the 53% growth in municipalities' own revenues, their dependence on the government is 44%.

"These results were strongly influenced by Maputo Municipality's own revenue, which in the period analyzed, on average, represents 40% of the own revenue of the 18 municipalities analyzed."

The risks associated with municipalities can have an impact on fiscal sustainability and economic stability, which manifests itself in high expenditure, poor revenue collection, and can lead to deficits and excessive indebtedness.