## 1mozea2023020

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---

### Mission purpose and context
- Mozambican authorities requested an IMF STA technical assistance (TA) mission to assist in improving the compilation of public sector debt statistics (PSDS).
- Mission conducted remotely during October 19–30, 2020.
- Mission financed by the Data for Decision Trust Fund (D4D).
- Main objective: assist authorities in strengthening compilation and dissemination of PSDS in accordance with Public sector debt statistics: Guide for compilers and users of 2011 (PSDSG 2011).

### Scope and focus of the mission
- Focus areas:
  - Identifying data sources;
  - Understanding coordination between public entities in the PSDS compilation process;
  - Analyzing sectorization and scope of PSDS;
  - Reconciling net credit to the Government and external debt compiled by MEF and BM;
  - Compiling debt stock for entire public sector;
  - Encouraging enhanced debt transparency by disseminating comprehensive PSDS.
- Specific tasks:
  - Analyze sectorization and coverage of PSDS;
  - Identify data sources and institutional coordination;
  - Compile PSDS tables for the last three years;
  - Monitor reconciliation of central government budget deposits between MEF and BM to identify real stock and distribution between freely available and frozen deposits (depósitos caucionados) or other unavailable deposits;
  - Support consolidation of public-sector-wide debt statistics and regular PSDS publication;
  - Identify and document shortcomings in source data and areas for improvement.

### Key findings and diagnostics
- MEF compiles a good debt statistic for the Budgetary Central Government (BCG) but improvements needed in data reconciliation, consistency, and application of PSDSG 2011 concepts and definitions.
- MEF currently publishes stock and flow (debt service) of internal and external debt by maturity, by instruments, by type of creditor, by currency.
- Non-consolidated information on part of the corporate sector's debt is presented separately.
- Main challenge: expand and consolidate all public sector subsectors.
- Incomplete inventory and classification:
  - A complete list of public entities and their classification according to GFSM 2014 pending since 2018.
  - Obtaining basic information on units outside the budget is a challenge, especially for Extra-Budgetary Units (EBU), local government (municipalities) and State-Owned Enterprises (SOE).
  - Recommendation: use IGEPE database as an interim measure because it contains financial statements of State-Owned enterprises including debt data.
- Treatment of Treasury Bills (BT):
  - MEF does not recognize issuance of BT used for monetary policy as domestic debt.
  - BM captures all BT issues both for monetary and fiscal purposes, but does not capture domestic debt outside the banking system (including arrears).
  - MEF and BM should agree on how BT should be recognized in monetary and fiscal accounts based on international statistical standards.
- External debt reconciliation:
  - Significant difference in external debt stock position reported by MEF and BM (as shown in the IIP).
  - Recommendation: MEF and BM should establish an appropriate mechanism for reconciling public debt both external and domestic.
- Government deposits and accounting basis:
  - Deposit positions differ between BM and MEF due to differences in BT classification, coverage and accounting basis (BM on accrual basis, MEF on cash basis).
  - BM imputes deposits resulting from BT issuances irrespective of fiscal or monetary purpose; National Treasury not aware of assets imputed to its deposit account when BM issues BT for monetary policy purposes.
  - BM reports General Government deposits position that includes Social security funds and excludes local government, complicating reconciliation with Central Government position reported by MEF.
  - Recommendation: finalize reconciliation work and document results; implement a formal process of reconciling flows and stock regularly, including explanations of differences.
- Institutional coordination:
  - Cooperation between public institutions must be improved.
  - Mission reiterated need to establish a Committee responsible for PSDS and GFS issues to obtain reliable, reconcilable, and timely data.

### Priority recommendations (deadlines and responsible institution preserved)
- April 2021 — Structure of the Public sector and inventory of public entities.
  - Actions: (i) validate the sector’s structure; (ii) complete the inventory and classify the entities according to GFSM 2014 (BCG, EBU, LG, INSS and public corporations) for compiling macroeconomic statistics; (iii) ratify and publish the structure and the inventory on the websites of MEF, BM and INE.
  - Responsible Institution: MEF, BM and INE
- April 2021 — Collect the missing data to complete PSDS compilation.
  - Actions: (i) Collect EBU debt data; (ii) Collect debt of the municipalities and reconcile with BM; (iii) Confirm that the social security debt collected during the mission is complete; (iv) Ensure that debt position for SOE’s is the most comprehensive to the extent possible.
  - Responsible Institution: BM, DNGDP, DNPED and DNTCEF
- April 2021 — Domestic public debt.
  - Actions: (i) Collect treasury bonds data by the residency of the investors; (ii) Finalize the reconciliation work started during the mission and document the results.
  - Responsible Institution: BM, DNGDP, DNPED and DNTCEF
- April 2021 — Treasury Bills (BT).
  - Action: MEF and the BM should agree on how BT should be recognized in the monetary and fiscal accounts based on international statistical standards.
  - Responsible Institution: BM, DNGDP, DNPED and DNTCEF
- April 2021 — External public debt.
  - Action: Finalize the reconciliation work between the MEF position and the International Investment Position (IIP) reported by the BM, started during the mission and document the results.
  - Responsible Institution: BM, DNGDP, DNPED and DNTCEF
- December 2020 — Deposits.
  - Actions: (i) finalize the reconciliation work initiated during the mission and document the results; (ii) MEF to provide Central Government deposit position with subtotal of BCG and EBU; (iii) BM to identify outstanding deposits of INSS, ensuring consistency with the amounts reported in the INSS’ Financial reports; (iv) BM to publish information on government deposits with the separation by subsector of public administrations; (v) adjust inflows resulting from the issuance of BT channeled into government deposits according to the decision on the statistical treatment of BT issued for fiscal and monetary purpose; (vi) The BM and MEF to implement a formal process of reconciling flows and stock regularly, including explanations of all the differences identified.
  - Responsible Institution: BM e MEF (DNGDP, DNPED and DNTCEF)
- Immediately — Debt of Public Corporations.
  - Actions: (i) Petromoc: identify the source of discrepancies between amounts presented in the MEF debt report and the loan amounts present in the company's report and accounts; (ii) extend reconciliation work to other SOEs to assess existence of similar situations.
  - Responsible Institution: IGEPE / MEF
- December 2020 — BCG annual and quarterly debt statistics.
  - Action: Start publishing these statistics on the website of the MEF and in the joint World Bank and IMF database.
  - Responsible Institution: DNGDP

### Reconciliation and data coverage — Domestic debt highlights
- Table 4: 2016-2019 Domestic Debt Reconciliation (unit: Mt million) — authorities vs BM reported totals:
  - Total (Authorities / BM):
    - 2016: 87,709.6 / 127,947.6
    - 2017: 106,899.6 / 215,398.4
    - 2018: 139,377.2 / 250,639.6
    - 2019: 154,595.2 / 271,171.3
  - Debt Securities (Authorities / BM):
    - 2016: 46,147.2 / 65,274.4
    - 2017: 64,199.7 / 152,047.1
    - 2018: 74,943.1 / 176,469.3
    - 2019: 94,492.4 / 193,802.8
  - Treasury Bonds (Authorities / BM):
    - 2016: 34,334.9 / 30,796.0
    - 2017: 42,565.7 / 39,566.0
    - 2018: 53,985.9 / 54,606.0
    - 2019: 64,820.4 / 52,517.4
  - Treasury Bills (Authorities / BM):
    - 2016: 11,812.3 / 34,478.4
    - 2017: 21,634.1 / 112,481.1
    - 2018: 20,957.2 / 121,863.3
    - 2019: 29,672.0 / 141,285.4
  - Loans (Authorities / BM):
    - 2016: 41,562.4 / 58,459.2
    - 2017: 42,699.9 / 55,029.4
    - 2018: 64,434.1 / 68,523.5
    - 2019: 60,102.8 / 71,168.5
  - Central bank loans (Authorities / BM):
    - 2016: 30,028.1 / 29,976.1
    - 2017: 29,882.3 / 27,693.4
    - 2018: 33,812.8 / 31,876.0
    - 2019: 37,812.8 / 36,858.4
  - Commercial banks loans (Authorities / BM):
    - 2016: 11,534.3 / 28,483.1
    - 2017: 12,817.6 / 27,336.0
    - 2018: 30,621.3 / 36,647.5
    - 2019: 22,290.0 / 34,310.0
  - Adjusted domestic debt (c = a + b) — identical Authorities/BM after adjustments:
    - 2016: 88,155.2
    - 2017: 109,570.2
    - 2018: 142,047.7
    - 2019: 157,265.7
  - Flows – Transactions (d) (Authorities / BM):
    - 2016: 18,872.2 / 18,872.1
    - 2017: 21,415.0 / 21,415.0
    - 2018: 32,477.6 / 32,477.5
    - 2019: 15,218.0 / 15,218.0
- Interpretation:
  - BT not used by MEF create conceptual and reporting differences: MEF excludes BT issued for monetary policy while BM records aggregate BT and imputes deposits to government.
  - BM’s treatment can lead to misinterpretation of BCG domestic debt and assets.
  - Loans positions largely consistent with BM for central bank loans, but commercial bank loans show significant differences.
  - Arrears reported by MEF (compiled 2007–2016 ≈ Mt 29.8 billion; Mt 19.8 billion approved by Office of the Audit General; Mt 9.9 billion not approved) are not captured by BM’s NCG position.
  - Recommendation: BM to reanalyze methodological treatment of BT in monetary survey jointly with MEF; both to implement regular reconciliations and document results.

### External debt reconciliation — highlights and discrepancies
- Mission reconciled MEF external debt with BM’s IIP (BPM6); differences approximately US$3 billion for 2016–2019.
- Table 5: Differences in External Debt 2016–2019 - Debt vs. IIP Report (US$ million):
  - Liabilities identified in IIP 1 = 2 + 3:
    - 2016: 11,717.89
    - 2017: 12,340.15
    - 2018: 12,391.10
    - 2019: 12,681.09
  - MEF Public debt report — External debt cf. Table 2: Public debt stock (4):
    - 2016: 8,626.32
    - 2017: 9,487.85
    - 2018: 9,804.45
    - 2019: 9,850.18
  - Difference 6 = 4 - 1:
    - 2016: -3,091.57
    - 2017: -2,852.30
    - 2018: -2,586.65
    - 2019: -2,830.91
  - Memorandum items:
    - MOZAM 2023 / MOZAM 2032 securities (MEF report) (7):
      - 2016: 726.52
      - 2017: 726.52
      - 2018: 726.52
      - 2019: 900
    - Other liabilities identified in IIP (9):
      - 2016: 256.55
      - 2017: 688.20
      - 2018: 1,119.85
      - 2019: 1,021.95
- Possible sources of discrepancy:
  - Sectoral coverage differences between IIP (liabilities of general government to nonresidents) and MEF (external debt of BCG).
  - Treatment of government guarantees on external loans of public companies may not be recognized by MEF.
  - Treatment of securitized EMATUM debt and other IIP liabilities require reconciliation.
- Recommendation: Complete reconciliation of external debt between MEF and BM; record results in methodological note.

### Reconciliation of Central Government deposits — key numbers and issues
- Central Government deposits reported in monetary survey (unit: Mt billion) — selected totals:
  - December 2015 Total: 62
  - December 2016 Total: 86
  - December 2017 Total: 183
  - December 2018 Total: 198
  - December 2019 Total: 242
  - August 2020 Total: 295
  - Variation December 2019–August 2020: 53
- Issues:
  - BM reports on accrual basis, MEF on cash basis; adjustments of the date create significant differences.
  - National Treasury should report separately the portion of deposits that the BCG holds and the portion held by extrabudgetary units.
  - Recommendation: finalize reconciliation, MEF provide Central Government deposit position with subtotal of BCG and EBU, BM to identify outstanding INSS deposits and publish government deposits separated by subsector.

### Preliminary consolidation results and PSDS compilation (2016–2019) — key statistics
- Preliminary consolidated findings (best-effort, incomplete coverage):
  - Mozambique's total public sector at end-2018: Mt 1.213 trillion, or 135.5 percent of GDP.
  - Unconsolidated general government debt in 2019: Mt 756.421 billion, an increase of Mt 18.823 billion compared to end-2018.
  - General government debt as % of GDP: 79 percent in 2019, compared to 82.4 percent at end-2018.
  - Nonfinancial public sector debt (excluding units of general government) at end-2019: Mt 130.248 billion, an increase of Mt 15.179 billion over previous year.
  - Nonfinancial public sector debt as % of GDP: 13.6 percent in 2019, up from 12.8 percent at end-2018.
  - Example discrepancy — Petromoc:
    - Petromoc debt reported by MEF in 2019: Mt 10.305 billion;
    - Company’s financial report loans: Mt 11.570 billion;
    - Unexplained amount: Mt 1.266 billion.
  - BM debt represented about 40 percent of GDP in 2017 and 2018; data for late 2019 not yet available to the central bank.
- Table 5 — Gross Public Sector Debt Stock by Sub-sector (preliminary) — Unit: Mt million / percentage of GDP (selected):
  - General government: 2016 702,782; 2017 663,030; 2018 737,598; 2019 756,421
  - % of GDP (general government): 2016 93.4; 2017 78.9; 2018 82.4; 2019 79.1
  - Nonfinancial public enterprises: 2017 58,864; 2018 115,068; 2019 130,248
  - % of GDP (nonfinancial public enterprises): 2017 7.0; 2018 12.8; 2019 13.6
  - Financial public enterprises (BM): 2016 205,857; 2017 336,261; 2018 361,224
  - % of GDP (BM): 2016 27.3; 2017 40.0; 2018 40.3
  - Total public sector: 2017 1,058,155; 2018 1,213,891
  - % of GDP (total public sector): 2017 125.9; 2018 135.5
  - Memorandum item: GDP: 2016 752,702; 2017 840,526; 2018 895,567; 2019 956,786
- Table 6 — Central Government Gross Debt Stock per holder/instrument (preliminary) — Unit: Mt million / Percentages of GDP (selected):
  - Central government debt Total: 2016 702 782; 2017 663 030; 2018 737 598; 2019 754 077
  - % of GDP: 2016 93.4; 2017 78.9; 2018 82.4; 2019 78.8
  - Debt securities: 2016 86 294; 2017 97 649; 2018 111 881; 2019 144 766
  - Loans: 2016 616 487; 2017 565 381; 2018 625 717; 2019 609 311
  - External (total): 2016 613 998; 2017 554 470; 2018 596 699; 2019 599 482
  - Domestic (total): 2016 88 784; 2017 108 560; 2018 140 899; 2019 154 595
  - Observation: Over 80 percent of the BCG debt is represented by loans; External debt represents about 80 percent of the total debt.
- Quarterly central government gross debt (selected):
  - 2018 Q4: Total 736,076; External 596,699; Domestic 139,377
  - 2019 Q4: Total 754,077; External 599,482; Domestic 154,595
  - 2020 Q2: Total 862,341; External 679,597; Domestic 182,744
  - Change in 2020: Total 108,264; External 80,115; Domestic 28,149
  - Note: central government debt accumulated an increase of Mt 108.264 billion in 2020, i.e. an increase of 14 percent compared to the end of 2019.

### PSDS concepts, definitions, and dissemination
- GFSM 2014 defines debt as liabilities requiring payment(s) of interest and/or principal in the future and does not distinguish securities by monetary vs fiscal use — creating uncertainty in recognition of BT.
- Recommendations:
  - Document the annual and quarterly GFS compilation process, including concepts and definitions used in PSDS compilation (Deadline: December 2021; Responsible: DNPED and DNGDP).
  - Create a Mozambique GFS and PSDS Manual describing concepts, definitions, valuation criteria, and all accounting principles used in PSDS compilation (Deadline: December 2021; Responsible: DNPED and DNGDP).
  - Extend instrument coverage to include loans, debt securities, SDRs, cash and deposits, insurance, pensions and standardized guarantee schemes, and other accounts payable per IMF PSDS compilation guide (Deadline: December 2021; Responsible: MEF).
  - Start compiling financial assets of the general public sector to enable compilation of public debt net of financial assets (net debt) (Deadline: December 2021; Responsible: MEF).
- Dissemination:
  - Currently, authorities do not transmit PSDS through the joint World Bank / IMF PSDS program.
  - Recommendation: complete missing information, review figures, and transmit validated quarterly public sector debt (QPSDS) data to the World Bank / IMF quarterly database.
  - DNGDP to publish annual and quarterly PSDS and transmit to joint database (Deadlines: April 2021 and December 2020 respectively as per mission).

### Institutional coordination — Government Finance Statistics Compilation Committee (GFSCC)
- Key recommendation: Establish a GFSCC or macroeconomic statistics group within the Higher Council of Statistics (CSE), governed by a cooperation protocol specifying objectives, members’ responsibilities, and information to be shared.
- Members proposed: MEF (DNPED, DNGDP, DNTCEF, DNCP, DNPO, DNPE, GGR), Bank of Mozambique (BM), National Institute of Statistics (INE).
- Coordinator: Director of the MEF DNPED.
- Duties include: define and update universe of institutional units; prepare GFS and PSDS; set indicative timetable; contribute to manuals; identify required basic information and access solutions; coordinate planning to meet reporting deadlines to international institutions.
- Data sharing under the Protocol to include: list of government entities by subsector; government deposits by beneficiary, sector and currency; domestic debt breakdown between BT and OT; external debt breakdown by counterparty, maturity, and currency; GDP; GFS; PSDS.
- Organizational arrangements: meet at least once per semester; extraordinary meetings as needed.

### Resources, training, and technical assistance
- Findings:
  - MEF staff has limited knowledge of PSDS; new MEF directorate formed with staff of little or no experience in compiling PSDS.
  - External debt managed through CS-DRMS 2000+; domestic debt managed through Excel files.
  - New debt management system financed by European Union is at tendering stage with an eight-month timeline.
- Recommendations:
  - Continuous staff training through IMF/World Bank GFS and PSDS courses (Responsible: DNPED and DNGDP).
  - Develop new debt system to automate domestic debt management, interlink domestic and external systems with e-SISTAFE, archive debt data and automatically generate PSDS tables (Deadline: December 2022; Responsible: DNGDP).
  - Provide PSDS manuals and training in Portuguese.

### Appendix IV — List of Public Sector Entities (metadata and samples)
- Latest update: October 2020.
- Central administration entities include Office of the President of the Republic; Ministry of National Defense; National Institute of Statistics; National Social Security Institute.
- Local administrations: 11 provinces, 10 districts and 53 municipalities (examples listed).
- State-owned enterprises, subsidiaries, and selected financial figures (examples show Capital, Stock, State share (value) and many entities with State share = 100, down to small minority holdings).
  - Examples:
    - 281 ADM - AEROPORTOS DE MOÇAMBIQUE, E.P — Capital: 4,347,050.00 — Stock: 4,347,050.00 — State share (value): 100
    - 294 Banco de Moçambique — Capital: 2,361,314.00 — Stock: 2,361,314.00 — State share (value): 100
    - 309 PETROMOC, S.A — Capital: 1,800,000.00 — Stock: 1,440,000.00 — State share (value): 80
    - 356 MOZAL, S.A. — Capital: 10 253 585.00 — Stock: 394,763.02 — State share (value): 4
- Nonprofit institutions and extrabudgetary units included (example: FUNDAÇÃO MALONDA — Capital: 25,000.00 — Stock: 25,000.00 — State share (value): 100).

### Relation to macroeconomic surveillance and prior assessments
- Mozambique’s public debt described as "in distress but sustainable for surveillance on a forward-looking basis."
- 2019 Article IV Consultation report:
  - At end-2018, total stock of public and publicly guaranteed debt reached about 110.5 percent of GDP.
  - Stock of arrears on public and publicly guaranteed external debt reached about US$1.2 billion at end-2018.
- AFR policy recommendations include debt restructuring and defining a strategy for reducing potential for a public debt crisis.

*Source: INTRODUCTION — 1mozea2023020*

### INTRODUCTION............................................................................................................

### INTRODUCTION

### Mission purpose and context
- The Mozambican authorities requested a technical assistance (TA) mission from the IMF Statistics Department (STA) to assist in improving the compilation of public sector debt statistics (PSDS).
- The mission was conducted remotely during October 19–30, 2020.
- The mission was financed by the Data for Decision Trust Fund (D4D).
- Main objective: assist authorities in strengthening the compilation and dissemination of PSDS in accordance with the Public sector debt statistics: Guide for compilers and users of 2011 (PSDSG 2011).

### Scope and focus of the mission
- Focus areas:
  - Identifying data sources;
  - Understanding coordination between public entities in the PSDS compilation process;
  - Analyzing the sectorization and scope of PSDS;
  - Reconciling information on net credit to the Government and external debt compiled by the Ministry of Economy and Finance (MEF) and by the Bank of Mozambique (BM);
  - Compiling debt stock for the entire public sector;
  - Encouraging enhanced debt transparency by disseminating comprehensive public sector debt statistics.
- Specific tasks included:
  - Conducting an analysis of the sectorization and coverage of the PSDS;
  - Identifying data sources and understanding institutional coordination;
  - Compiling PSDS tables for the last three years;
  - Monitoring reconciliation of central government budget deposits between MEF and BM to identify real stock and distribution between freely available and frozen deposits (depósitos caucionados) or other unavailable deposits;
  - Supporting consolidation of public-sector-wide debt statistics and regular PSDS publication;
  - Identifying and documenting shortcomings in source data and areas for improvement.

### Key findings and diagnostics
- MEF compiles a good debt statistic for the Budgetary Central Government (BCG) but improvements are needed in data reconciliation, consistency, and application of PSDSG 2011 concepts and definitions.
- MEF currently publishes stock and flow (debt service) of internal and external debt by maturity, by instruments, by type of creditor, by currency.
- Non-consolidated information on part of the corporate sector's debt is presented separately.
- Main challenge: expand and consolidate all public sector subsectors.

- Incomplete inventory and classification:
  - A complete list of public entities and their classification according to the Government Finance Statistics Manual 2014 (GFSM 2014) has been pending since 2018.
  - Obtaining basic information on units outside the budget is a challenge, especially for Extra-Budgetary Units (EBU), local government (municipalities) and State-Owned Enterprises (SOE).
  - Recommendation: use the database of the State Holdings Management Institute (IGEPE) as an interim measure because it contains financial statements of State-Owned enterprises which includes debt data.

- Treatment of Treasury Bills (BT):
  - MEF does not recognize issuance of Treasury Bills (BT) used for monetary policy as domestic debt.
  - BM captures all BT issues both for monetary and fiscal purposes, but does not capture domestic debt outside the banking system (including arrears).
  - MEF and BM should agree on how BT should be recognized in monetary and fiscal accounts based on international statistical standards.

- External debt reconciliation:
  - Significant difference in external debt stock position reported by MEF and BM (as shown in the International Investment Position).
  - Recommendation: MEF and BM should establish an appropriate mechanism for reconciling public debt both external and domestic.

- Government deposits and accounting basis:
  - Deposit positions differ between BM and MEF due to:
    - Differences in BT classification, coverage and the accounting basis (BM on accrual basis, MEF on cash basis).
    - BM’s imputation of deposits resulting from BT issuances (irrespective of fiscal or monetary purpose) affecting monetary survey deposits.
    - MEF’s National Treasury not being aware of assets imputed to its deposit account when BM issues BT for monetary policy purposes.
    - BM reports General Government deposits position that includes Social security funds and excludes local government, complicating reconciliation with Central Government position reported by MEF.
  - Recommendation: finalize reconciliation work and document results; implement a formal process of reconciling flows and stock regularly, including explanations of differences.

- Institutional coordination:
  - Cooperation between public institutions must be improved.
  - The mission reiterated need to establish a Committee responsible for PSDS and GFS issues to obtain reliable, reconcilable, and timely data.

- Preliminary consolidation results:
  - Preliminary debt consolidation using available public sector data (BCG, municipalities, National Social Security Institute (INSS), and SOEs) indicates:
    - Mozambique's public sector debt in 2018 amounted to around 136 percent of GDP.
    - Nonfinancial public sector debt, excluding units of general government, amounted to Mt 130.248 billion at the end of 2019, an increase of Mt 15.179 billion over the previous year.
  - Mission requested further investigation of SOE debt positions, notably Petromoc, where MEF figures differ significantly from the company’s financial report.
  - Authorities were encouraged to undertake periodic reconciliation and compilation exercises while implementing the mission's recommendations.

### Priority recommendations (deadline and responsible institution preserved)
- April 2021 — Structure of the Public sector and inventory of public entities.
  - Actions: (i) validate the sector’s structure; (ii) complete the inventory and classify the entities according to GFSM 2014 (BCG, EBU, LG, INSS and public corporations) for compiling macroeconomic statistics (fiscal, monetary and financial statistics, external, and the real sector); and (iii) ratify and publish the structure and the inventory on the websites of MEF, BM and INE.
  - Responsible Institution: MEF, BM and INE

- April 2021 — Collect the missing data to complete PSDS compilation.
  - Actions: (i) Collect EBU debt data; (ii) Collect debt of the municipalities and reconcile with BM; (iii) Confirm that the social security debt collected during the mission is complete; (iv) Ensure that debt position for SOE’s is the most comprehensive to the extent possible.
  - Responsible Institution: BM, DNGDP, DNPED and DNTCEF

- April 2021 — Domestic public debt.
  - Actions: (i) Collect treasury bonds data by the residency of the investors; (ii) Finalize the reconciliation work started during the mission and document the results.
  - Responsible Institution: BM, DNGDP, DNPED and DNTCEF

- April 2021 — Treasury Bills (BT).
  - Action: MEF and the BM should agree on how BT should be recognized in the monetary and fiscal accounts based on international statistical standards.
  - Responsible Institution: BM, DNGDP, DNPED and DNTCEF

- April 2021 — External public debt.
  - Action: Finalize the reconciliation work between the MEF position and the International Investment Position (IIP) reported by the BM, started during the mission and document the results.
  - Responsible Institution: BM, DNGDP, DNPED and DNTCEF

- December 2020 — Deposits.
  - Actions: (i) finalize the reconciliation work initiated during the mission and document the results; (ii) MEF to provide Central Government deposit position with subtotal of BCG and EBU; (iii) BM to identify outstanding deposits of INSS, ensuring consistency with the amounts reported in the INSS’ Financial reports; (iv) BM to publish information on government deposits with the separation by subsector of public administrations; (v) adjust inflows resulting from the issuance of BT channeled into government deposits according to the decision on the statistical treatment of BT issued for fiscal and monetary purpose; (vi) The BM and MEF to implement a formal process of reconciling flows and stock regularly, including explanations of all the differences identified.
  - Responsible Institution: BM e MEF (DNGDP, DNPED and DNTCEF)

- Immediately — Debt of Public Corporations.
  - Actions: (i) Petromoc: identify the source of discrepancies between amounts presented in the MEF debt report and the loan amounts present in the company's report and accounts; (ii) extend reconciliation work to other SOEs to assess existence of similar situations.
  - Responsible Institution: IGEPE / MEF

- December 2020 — BCG annual and quarterly debt statistics.
  - Action: Start publishing these statistics on the website of the MEF and in the joint World Bank and IMF database.
  - Responsible Institution: DNGDP

### Relation to macroeconomic surveillance and prior assessments
- Mozambique’s public debt described as "in distress but sustainable for surveillance on a forward-looking basis."
- According to the 2019 Article IV Consultation report:
  - At end-2018, the total stock of public and publicly guaranteed debt reached about 110.5 percent of GDP.
  - The stock of arrears on public and publicly guaranteed external debt reached about US$1.2 billion at end-2018.
- AFR policy recommendations include debt restructuring and defining a strategy for reducing potential for a public debt crisis.

### Report structure and appendices
- Following the executive summary and introduction, the report contains:
  - Detailed technical assessment and recommendations;
  - Sections on coordination of the PSDS compilation process, institutional coverage, data and sources (including reconciliation exercises), PSDS concepts and definitions, compilation of annual and quarterly PSDS 2016-2019, resources and training;
  - Figures, tables (including Priority Recommendations and Detailed Recommendations/Plan of Action), and appendices:
    - Appendix I: Senior Staff and Technicians Contacted During the Mission;
    - Appendix II: Protocol for institutional cooperation on government statistics;
    - Appendix III: Institutional Structure of General Government;
    - Appendix IV: List of public sector entities.

*Source: INTRODUCTION — 1mozea2023020*

### 7. The mission thanks the authorities, in    particular Enilde Sarmento, Ester José, Chamila Aly,

### 1mozea2023020 - 7. The mission thanks the authorities, in    particular Enilde Sarmento, Ester José, Chamila Aly,

### Acknowledgements
- The mission thanks the authorities, in particular Enilde Sarmento, Ester José, Chamila Aly, and Domingos Fumo, and their respective teams, for facilitating the work of this mission.
- The mission also thanks the staff of the IMF Office in Mozambique, in particular Esther Palacio, IMF Technical Assistance Advisor and Coordinator in Mozambique, for the technical support provided to this mission.

### Detailed technical assessment and recommendations — Overview
- The mission presents a Plan of Action comprising the complete list of recommendations to be implemented by the authorities in the next two years. (Table 2. Detailed Recommendations / Plan of Action)
- Actions are prioritized as High = H, Medium = M, Low = L.
- Responsible institutions and expected completion dates are specified for each action.

### 1. Coordination of the PSDS compilation process
- Priority: H
- Key recommendation:
  - Establish a Government Finance Statistics Compilation Committee (GFSCC) or macroeconomic statistics group within the Higher Council of Statistics (CSE), governed by a cooperation protocol signed by the members, specifying its objectives, the members’ responsibilities, and the information to be shared.
- Responsible institution(s): DNPED, DNGDP, DNCP, DNPO, DNTCEF, GGR, BM and INSS
- Expected completion date: April 2021

### 2. Institutional coverage — Public sector in Mozambique
- Priority: H / M / L (varies by action)
- Findings and recommended actions:
  - Complete the inventory and classify entities according to GFSM 2014 [BCG, EBU, local government (LG), SSF and public companies].
    - Responsible: MEF, BM and INE
    - Expected completion date: April 2021
  - Validate the structure of the sector; ratify the list of entities for macroeconomic statistics; evaluate classification of public companies and EBU using the market test on an entity-by-entity basis (regularly).
    - Responsible: MEF, BM and INE
    - Expected completion date: August 2021
  - Publish a unified and structured list of the sector of each institutional unit on the MEP, BM and INE websites, classified according to GFSM 2014.
    - Responsible: MEF, BM and INE
    - Expected completion date: December 2021
- Additional institutional findings:
  - General government (GG) consists of central government, local government, and social security.
  - Central administration: 20 ministries, 11 executive management units, about 100 beneficiary management units, and Extrabudgetary Units (EBU).
  - Local administration: 11 provinces, 10 districts and 53 municipalities.
  - There are 93 entities belonging to central and local government: 80 public institutes and 12 public funds, and nonprofit institutions (including the Malonda Foundation).
  - Social security consists exclusively of the National Social Security Institute (INSS).
  - Public enterprise sector: financial (BM, two commercial banks and an insurance company) and nonfinancial (public enterprises and affiliated companies).
- Recommendation: Periodically update and publish exhaustive lists to ensure harmonization across DNPED, DNGDP, BM and INE.

### 3. Data and its sources — reconciliation and coverage
- Priorities: H / M
- Key reconciliation and data collection actions (selected):
  - Reconciliation of the domestic debt:
    - Actions: complete reconciliation started during the mission and document final result; implement a formal regular reconciliation process for flows and stocks (by instrument, face and nominal value, and creditor); prepare a report on reconciliation results including explanations of all differences identified in BM data (net lending to the government) and DNGDP (detailed debt charts).
    - Responsible: BM and MEF (DNGDP, DNTCEF and DNPED)
    - Expected completion date: April 2021
    - Priority: H
  - Treasury Bills:
    - Action: Reconciliation of the total treasury bills debt to be recognized in the monetary and fiscal accounts — prepare a methodological analysis on statistical treatment of BTs issued for government financing purposes.
    - Responsible: MEF (DNGDP and DNTCEF) and BM
    - Expected completion date: April 2021
    - Priority: H
  - Debt securities:
    - Action: Present a total breakdown of Treasury securities: (i) details of treasury bills issues and (ii) details of treasury bonds.
    - Responsible: BM
    - Expected completion date: April 2021
    - Priority: M
  - Treasury Bonds:
    - Action: MEF should regularly request data on debt held in OTs (issued through the stock exchange, Bolsa de Valores de Moçambique –BVM), by holding sector, identifying the portion of treasury bonds held by each resident sector and the nonresident sector; indicate valuation (face value or market value).
    - Responsible: MEF and BVM
    - Expected completion date: April 2021
    - Priority: M
  - Commercial bank loans:
    - Action: Provide details of total loans from commercial banks.
    - Responsible: BM
    - Expected completion date: April 2021
    - Priority: M
  - International Investment Position (IIP) of general government:
    - Actions: Complete reconciliation of external debt position between MEF and BM: (i) external loans; (ii) debt securities and possible differences in treatment of the MOZAM 2032 bond; (iii) treatment of other liabilities included in the IIP but not included in external debt reported by the MEF; record results in a methodological note; BM to report total debt of each public-sector subsector: GG = BCG+EBU+INSS+LG and also the SEE.
    - Responsible: MEF and BM
    - Expected completion date: April 2021
    - Priority: H
  - Debt of EBU:
    - Action: Launch systematized collection of debt of EBUs.
    - Responsible: MEF
    - Expected completion date: April 2021
    - Priority: M
  - INSS debt:
    - Action: Request INSS debt data regularly and compare with financial reports and BM position; ratify INSS classification in Social Security Funds subsector and adjust statistics accordingly.
    - Responsible: MEF and INSS
    - Expected completion date: April 2021
    - Priority: M
  - Local government debt:
    - Action: Collect and compile information on a regular basis.
    - Responsible: MEF
    - Expected completion date: April 2021
    - Priority: M
  - Debt of financial and nonfinancial public sector corporations:
    - Action: Collect and compile information on a regular basis.
    - Responsible: MEF and IGEPE
    - Expected completion date: April 2021
    - Priority: M
  - Reconciliation of deposits:
    - Actions: finalize reconciliation work initiated during the mission and document results; MEF to provide Central Government deposit position with subtotal of BCG and EBU; BM to identify outstanding deposits of INSS ensuring consistency with INSS financial reports; BM to publish government deposits separated by subsector; adjust inflows from issuance of BT channeled into government deposits according to decision on statistical treatment of BTs; implement formal regular process reconciling flows and stocks including explanations of differences identified.
    - Responsible: BM and MEF (DNGDP, DNPED and DNTCEF)
    - Expected completion date: Immediately
    - Priority: H

- Data source findings:
  - Primary sources of gross domestic debt of Budgetary Central Government (BCG) include DNGDP, BVM, BM and DNTCEF.
  - BVM has detailed information on holders of treasury bonds helpful for allocation between domestic and external sectors and consolidation.
  - BM provides information on potential overdrafts, loans from the national banking system, and general government external debt in the IIP (compiled according to the 6th edition of the Balance of Payments and International Investment Position Manual).
  - Debt of EBUs should consider DNCP and DNTCEF data together with data obtained directly from EBUs; mission did not include EBU debt due to unavailable sources.
  - INSS debt data used in this report were from INSS financial reports; detailed information should be obtained directly from INSS in future.

### 4. PSDS concepts and definitions
- Priority: L
- Recommendation:
  - Document the annual and quarterly GFS compilation process for institutional memory and consistency, including concepts and definitions used in the PSDS compilation process.
  - Responsible: DNPED and DNGDP
  - Expected completion date: December 2021

### 5. Compilation of annual and quarterly PSDS 2016-2019
- Priority: H / M
- Actions and timelines:
  - PSDS for 2016-2019 compiled during the mission:
    - Actions: validate and complete missing information at subsector level; extend the exercise to other years; publish in the joint World Bank/IMF database and on the MEF website.
    - Responsible: DNGDP
    - Expected completion date: April 2021
    - Priority: H
  - Quarterly PSDS compiled during the mission:
    - Actions: validate data compiled during the mission; extend to other years; publish in the joint World Bank and IMF database and on the MEF website.
    - Responsible: DNGDP
    - Expected completion date: December 2020
    - Priority: H
  - Budgetary central government debt:
    - Action: Present information systematically by instrument and counterpart sector in time series format to facilitate IMF reporting template transposition.
    - Responsible: MEF
    - Expected completion date: December 2021
    - Priority: M
  - Debt of public companies:
    - Actions: (i) Petromoc—clarify discrepancy between MEF debt report and company financial report; (ii) extend reconciliation to other companies.
    - Responsible: IGEPE and MEF
    - Expected completion date: Immediately
    - Priority: H
  - Coverage of instruments in the PSDS:
    - Action: Extend instrument coverage to include loans, debt securities, SDRs, cash and deposits, insurance, pensions and standardized guarantee schemes, and other accounts payable per IMF PSDS compilation guide.
    - Responsible: MEF
    - Expected completion date: December 2021
    - Priority: M
  - Financial assets:
    - Action: Start compiling financial assets of the general public sector to enable compilation of public debt net of financial assets (net debt).
    - Responsible: MEF
    - Expected completion date: December 2021
    - Priority: M

### 6. Resources, training, and technical assistance
- Priorities: M / L
- Recommendations:
  - Training of technical staff:
    - Action: Provide staff training through participation in various GFS and PSDS courses sponsored by the IMF.
    - Responsible: DNPED and DNGDP
    - Expected completion date: Continuous
    - Priority: M
  - Development of the new debt system:
    - Actions: (i) Ensure the new system allows automated management of the domestic debt; (ii) facilitates management of debt data and automated creation of PSDS tables; (iii) interlink domestic and external debt management systems with e-SISTAFE.
    - Responsible: DNGDP
    - Expected completion date: December 2022
    - Priority: L

*Source: 1mozea2023020 PDF chapter/section (Detailed Technical Assessment and Recommendations).*

### 1.1 Domestic and

### 1.1 Domestic and external

### Coverage and data sources
- Financial instruments covered: Currency and deposits; Debt Securities (BT/OT); Loans; Insurance, pensions, and standardized guarantee schemes; Other accounts receivable/payable.
- Institutional data sources referenced: BM, DNTCEF, INSS, IGEPE, DNCP/e‑SISTAFE, DNGDP, BVM, MEF, EBU.
- Sectoral coverage: Central government (budgetary and extrabudgetary units), Social security, Local governments (provinces, districts, and municipalities), Public companies.
- Key operational notes:
  - Financial assets, domestic and external debt should be reconciled with the BM. Data from EBUs not included in the budget should be collected from EBUs.
  - INSS data from its financial reports used for social security positions.
  - Some local government debt and financial assets available in e‑SISTAFE and should be reconciled with the BM; municipal own‑resource execution should be obtained from the DNCP.
  - Data from public companies may be obtained from IGEPE, DNTCEF and BM; mission used MEF public debt report figures for SEE.

### Reconciliation process and recommendations
- The mission continued reconciliation of net credit to the government (NCG) and reviewed asset positions in BCG deposits and domestic debt between BM and MEF.
- Authorities asked to perform regular reconciliation and complete reconciliation of previous years; mission recommends preparing a report on reconciliation results for institutional memory.
- Specific recommendation: BM should reanalyze the methodological treatment of Treasury Bills (BT) issued in the monetary survey and perform a methodological analysis in conjunction with the MEF.
- Additional tasks requested of authorities:
  - BM to report OT position separately from BT.
  - BM to provide details on government loans with commercial banks to facilitate reconciliation.
  - BM to finish reconciliation of external debt for PSDS compilation.
  - Check consistency of treatment of securitized debt (EMATUM MOZAM 2023 / MOZAM 2032) between MEF and IIP.

### Key findings on Treasury Bills (BT) and securities treatment
- Differential treatment:
  - MEF reports domestic debt stock including only BT actually used by the National Treasury (fiscal policy BT).
  - MEF does not recognize BT issued for monetary policy purposes as part of BCG debt.
  - BM reports aggregate securities including BT and imputes amounts associated with BT not used by the Government to government deposits on behalf of the State.
- BM assertions regarding BT not used by MEF:
  - (i) No debt service associated with BT not used by the Government.
  - (ii) MEF does not request issuance and there is no MEF–BM agreement on issuance of BT used for monetary policy.
  - (iii) MEF does not know when such BT are issued by the BM.
- GFSM 2014: defines debt as liabilities requiring payment(s) of interest and/or principal in the future and does not distinguish securities by monetary vs fiscal use — creating uncertainty in recognition of BT.

### Domestic debt reconciliation (Table 4 highlights)
- Source table title: Table 4: 2016-2019 Domestic Debt Reconciliation (unit: Mt million)
- Authorities and BM reported totals (a Total (Authorities) / BM):
  - 2016: 87,709.6 / 127,947.6
  - 2017: 106,899.6 / 215,398.4
  - 2018: 139,377.2 / 250,639.6
  - 2019: 154,595.2 / 271,171.3
- Debt Securities (Authorities / BM):
  - 2016: 46,147.2 / 65,274.4
  - 2017: 64,199.7 / 152,047.1
  - 2018: 74,943.1 / 176,469.3
  - 2019: 94,492.4 / 193,802.8
- Treasury Bonds (BM & credit institutions) (Authorities / BM):
  - 2016: 34,334.9 / 30,796.0
  - 2017: 42,565.7 / 39,566.0
  - 2018: 53,985.9 / 54,606.0
  - 2019: 64,820.4 / 52,517.4
- Treasury Bills (Authorities / BM):
  - 2016: 11,812.3 / 34,478.4
  - 2017: 21,634.1 / 112,481.1
  - 2018: 20,957.2 / 121,863.3
  - 2019: 29,672.0 / 141,285.4
- Loans (Authorities / BM):
  - 2016: 41,562.4 / 58,459.2
  - 2017: 42,699.9 / 55,029.4
  - 2018: 64,434.1 / 68,523.5
  - 2019: 60,102.8 / 71,168.5
- Central bank loans (Authorities / BM):
  - 2016: 30,028.1 / 29,976.1
  - 2017: 29,882.3 / 27,693.4
  - 2018: 33,812.8 / 31,876.0
  - 2019: 37,812.8 / 36,858.4
- Commercial banks loans (Authorities / BM):
  - 2016: 11,534.3 / 28,483.1
  - 2017: 12,817.6 / 27,336.0
  - 2018: 30,621.3 / 36,647.5
  - 2019: 22,290.0 / 34,310.0
- Adjustments and differences (b Differences - (Total adjustments)):
  - Authorities (b): 445.6 / 2,670.6 / 2,670.6 / 2,670.6 (2016–2019)
  - BM (b): -40,238.0 / -108,498.8 / -111,262.4 / -116,576.1 (2016–2019)
- Adjusted domestic debt (c = a + b) — identical Authorities/BM after adjustments:
  - 2016: 88,155.2
  - 2017: 109,570.2
  - 2018: 142,047.7
  - 2019: 157,265.7
- Flows – Transactions (d) (Authorities / BM):
  - 2016: 18,872.2 / 18,872.1
  - 2017: 21,415.0 / 21,415.0
  - 2018: 32,477.6 / 32,477.5
  - 2019: 15,218.0 / 15,218.0
- Note: Source: MEF, IMF (June 2019 Article IV Report), and authors’ calculations. The data shown in red need to be confirmed by the Mozambican authorities.

### Interpretation of domestic reconciliation findings
- BT not used by MEF should not constitute BCG debt, given lack of debt service and GFSM 2014 debt definition — current reporting creates misunderstanding.
- BM monetary survey records total BT issuance as BCG liability and imputes a corresponding asset as BCG deposits; this treatment can lead to incorrect interpretation of BCG domestic debt and BCG assets.
- Treasury bonds (OT) reporting differences: BM reports aggregate securities issued (BT + OT) based on banking system holdings, while MEF obtains OT holdings from BVM; BM’s OT amounts appear to consider only OT held by commercial banks, excluding other holders (individuals, external investors).
- Loans: BM and MEF loan positions with BM largely consistent; commercial bank loan positions show significant differences (notably 2015 historically), partly due to BM recognition of Portuguese credit line (not BCG debt).
- Arrears and other accounts payable: MEF reports supplier arrears (compiled 2007–2016 ≈ Mt 29.8 billion; Mt 19.8 billion approved by Office of the Audit General; Mt 9.9 billion not approved). These arrears are not captured by BM’s NCG position.
- Other monetary accounts adjustments arise from accrual recording methodology; MEF records debt on a cash basis, causing counterpart differences unless BCG expenditure counterparts are recorded.

### External debt reconciliation (Table 5 highlights)
- Mission reconciled MEF external debt with BM’s IIP (BPM6); differences approximately US$3 billion for 2016–2019.
- Table 5: Differences in External Debt 2016–2019 - Debt vs. IIP Report (US$ million)
  - Liabilities identified in IIP 1 = 2 + 3:
    - 2016: 11,717.89
    - 2017: 12,340.15
    - 2018: 12,391.10
    - 2019: 12,681.09
  - Debt securities - general government (2):
    - 2016: 546.72
    - 2017: 495.90
    - 2018: 495.90
    - 2019: 495.90
  - Loans - general government (3):
    - 2016: 11,171.17
    - 2017: 11,844.25
    - 2018: 11,895.20
    - 2019: 12,185.19
  - MEF Public debt report — External debt cf. Table 2: Public debt stock (4):
    - 2016: 8,626.32
    - 2017: 9,487.85
    - 2018: 9,804.45
    - 2019: 9,850.18
  - Difference 6 = 4 - 1:
    - 2016: -3,091.57
    - 2017: -2,852.30
    - 2018: -2,586.65
    - 2019: -2,830.91
  - Memorandum items:
    - MOZAM 2023 / MOZAM 2032 securities (MEF report) (7):
      - 2016: 726.52
      - 2017: 726.52
      - 2018: 726.52
      - 2019: 900
    - Difference - external securitized debt 8 = 7 - 2:
      - 2016: 179.80
      - 2017: 230.62
      - 2018: 230.62
      - 2019: 404.10
    - Other liabilities identified in IIP (9):
      - 2016: 256.55
      - 2017: 688.20
      - 2018: 1,119.85
      - 2019: 1,021.95
- Possible sources of external debt discrepancies:
  - Sectoral coverage differences between IIP (liabilities of general government to nonresidents) and MEF (external debt of BCG).
  - Treatment of government guarantees on external loans of public companies may not be recognized by MEF; treatment differences may account for loan reporting gaps.
  - Treatment of securitized EMATUM debt and other IIP liabilities require reconciliation.

### Reconciliation of Central Government Deposits
- BCG deposits held by BM include flows resulting from issuance of BT whether for monetary or fiscal policy purposes.
- Variation in deposits held with BM affected by BT issuance channeled into government deposits; imputation of deposits from BT issuance contributes to differences between BM and MEF reported positions.
- National Treasury is not aware of assets imputed to its deposit account when BM issues BT for monetary policy purposes, generating reporting differences.

*Source: Excerpt from Republic of Mozambique — IMF mission report section 1.1 Domestic and external (tables and text as provided).*

### 41. Government deposits identified in the monetary surveys include Social Security

### 41. Government deposits identified in the monetary surveys include Social Security

### Government deposits, accounting basis, and reconciliation issues
- Government deposits identified in the monetary surveys include Social Security deposits.
- The mission suggests the use of a single list of entities, classified according with the international manuals; the authorities should ratify the INSS classification in the social security funds subsector, and adjust all statistics produced accordingly.
- BM reports on accrual basis, MEF reports on cash basis. BM makes adjustments of the date to reflect the commitments, and MEF does not, creating significant differences in the positions held by both public institutions.
- The MEF should report separately:
  - the portion of deposits that the BCG holds, and
  - the portion of deposits held by extrabudgetary units.
- This separation is fundamental for completing the work of deposits reconciliation, since the National Treasury does not recognize all the foreign and local currency amounts deposited with commercial banks as reported in the monetary survey.
- Note: The separation between BCG and EBU deposit should be provided by MEF.

### Table 6 — Detail of Central Government Deposits Reported in the Monetary Survey (selected entries)
- Unit: Mt billion
- December 2015
  - BCG: 19  5 13 1 9 3 3  53
  - INSS: 0 0 0 0 9 0  0 9
  - Total: 19 5 13 1 18 3 3 62
- December 2016
  - BCG: 15 13 27 1 8 5 3  72
  - INSS: 0 0 0 0 14 0  0  14
  - Total: 15 13 27 1 22 5 3 86
- December 2017
  - BCG: 26 33 84 7 10 3 3  166
  - INSS: 0 0 0 0 17 0  0  17
  - Total: 26 33 84 7 27 3 3 183
- December 2018
  - BCG: 26 12 108 8 16 3 2  175
  - INSS: 0 0 0 0 23 0  0  23
  - Total: 26 12 108 8 39 3 2 198
- December 2019
  - BCG: 57 11 123 7 15 4 1  218
  - INSS: 0 0 0 0 24 0  0  24
  - Total: 57 11 123 7 39 4 1 242
- August 2020
  - BCG: 68 19 147 7 18 6 4  269
  - INSS: 0 0 0 0 26 0 0  26
  - Total: 68 19 147 7 44 6 4 295
- Variation in year December 2019–August 2020: 11 8 24 0 5 2 3 53
- Source: BM and MEF

### Reconciliation and operational recommendations (deadlines and responsibilities)
- April 2021 — Reconciliation of domestic debt.
  - (i) Complete the reconciliation work started during the mission and document the final outcome;
  - (ii) Implement a formal process for regular reconciliation of flows and stock (by instrument, face value, and creditor);
  - (iii) Prepare a report on the reconciliation results, including explanations of all differences identified in the BM (net credit to the government and balance of payments) and DNTCEF (detailed debt charts) data, for institutional memory purposes.
  - Responsible: BM and MEF (DNGDP and DNPED)
- April 2021 — Treasury bills.
  - Agree on the total amount of BT debt to be recognized in the monetary and fiscal accounts – prepare a methodological analysis on the statistical treatment of BT issued for government financing.
  - Responsible: MEF and BM
- April 2021 — Debt Securities.
  - Present a total breakdown of treasury bonds: (i) details of issuance of BT and (ii) details of OT.
  - Responsible: BM
- April 2021 — Treasury Bonds.
  - MEF should regularly request information on the OT debt issued through the BVM, identifying the share of OT held by each of the residents (individuals, nonfinancial corporations, BM, and other financial institutions) and by the nonresident. Indicate whether debt is valued at face value or market value.
  - Responsible: MEF and BVM
- April 2021 — Loans from commercial banks.
  - Provide details of total loans with commercial banks.
  - Responsible: BM
- April 2021 — GG International Investment Position.
  - Complete reconciliation of external debt between the MEF and the BM: (i) external loans; (ii) debt securities and possible differences in the treatment of MOZAM 2032; (iii) treatment of other liabilities included in the IIP and not included in the MEF external debt position. Transcribe results in a methodological note; and (iv) BM should report total debt of each public sector subsector: GG = BCG + EBU + INSS + LG, also the corporate financial and nonfinancial sector.
  - Responsible: MEF / BM
- April 2021 — Debt of EBU.
  - Launch systematized collection of the debt of these entities.
  - Responsible: MEF
- April 2021 — INSS debt.
  - Request INSS detailed debt data on a regular basis and compare with position reported in its financial reports.
  - Responsible: MEF/INSS
- April 2021 — Local government debt.
  - Collect and compile information on a regular basis.
  - Responsible: MEF
- April 2021 — Financial and nonfinancial public sector debt.
  - Collect and compile information on a regular basis.
  - Responsible: MEF/IGEPE
- Immediately — Reconciliation of deposits.
  - (i) Finalize the reconciliation work initiated during the mission and document the results;
  - (ii) MEF to provide Central Government deposit position with subtotal of BCG and EBU;
  - (iii) BM to identify outstanding deposits of INSS, ensuring consistency with amounts reported in INSS’ Financial reports;
  - (iv) Authorities should ratify the classification of the INSS in the Social Security Funds subsector, and adjust all statistics produced accordingly;
  - (v) BM to publish information on government deposits with the separation by subsector of public administrations;
  - (vi) Adjust inflows resulting from the issuance of BT channeled into government deposits according to the decision on the statistical treatment of BT issued for fiscal and monetary purpose;
  - (vii) BM and MEF to implement a formal process of reconciling flows and stock regularly, including explanations of all differences identified.
  - Responsible: BM e MEF (DNGDP, DNPED and DNTCEF)

### PSDS concepts, definitions, and recommended outputs
- The compilation of BCG debt statistics in Mozambique uses concepts and definitions not established in PSDSG 2011; clarification needed for treatment and recording of BT between BM and MEF.
- Role and importance of PSDS:
  - (i) understand and record the role of government and the public sector in an economy;
  - (ii) evaluate a country’s fiscal position and policy orientation, and the macroeconomic impact of government policies;
  - (iii) assess fiscal vulnerabilities and risks;
  - (iv) improve debt sustainability analysis;
  - (v) foster government accountability and transparency;
  - (vi) increase international comparability.
- Debt defined as a subset of liabilities; debt instruments reviewed (including all liability instruments, excluding shares and units in investment funds, financial derivatives, and employee stock options).
- Gross debt versus net debt:
  - Gross debt: financial claims requiring payment(s) of interest and/or principal by the debtor to the creditor at a future date or dates.
  - Net debt: gross debt minus the financial assets corresponding to the individual debt instruments.
- Compilation should include all debt liabilities owed by resident public sector units to other residents and nonresidents; current reports do not fulfill the residence accounting principle because total issues (at least of OT) are not broken down between resident and nonresident holders.
- Public Financial statements (CGE) link debt stock evolution and transactions/other economic flows; debt cancellation/forgiveness and gains/losses from currency exchange are reported in a single total — debt cancellation/forgiveness should be considered transactions, exchange gains/losses recorded as other economic flows.
- Valuation: public debt is generally reported at face value; other consistent recognition and valuation criteria (market value, fair value, nominal value) affect DSA.
- Contingent liabilities: per GFSM 2014, should not be recorded as part of total liability unless specific conditions met; recommended to record as memorandum items.
- Recommendation: create a Mozambique GFS and PSDS Manual describing concepts, definitions, valuation criteria, and all accounting principles used in PSDS compilation; include instructions for execution of PSDS tasks to ensure institutional memory and consistency.
  - Deadline: December 2021
  - Responsible: DNPED and DNGDP

### Compilation of annual and quarterly PSDS (2016–2019) — findings and statistics
- The PSDS compilation excluded liabilities that do not require payment of interest and/or principal, such as equity and investment fund units, and financial derivatives (GFSM 2014 definition).
- A preliminary PSDS compilation exercise in Excel compiled detailed annual PSDS data by subsector and quarterly data from Q1 2019 for total BCG debt.
- The preliminary compilation considered BCG domestic and external debt, loans of municipalities and INSS, and liabilities reported by SEE, including BM. The exercise did not include EBU debt and was calculated on a best-effort basis.
- MEF currently compiles debt of the BCG only; attempts to obtain other general government subsector debt were unsuccessful. Data on local government debt and social security funds were collected from published information; EBU information not obtained.
- Debt of nonfinancial public sector was calculated from MEF public debt report; financial sector public debt figures incorporate BM data only.
- Key aggregated figures (preliminary):
  - Total public sector at end-2018: Mt 1.213 trillion, or 135.5 percent of GDP.
  - Unconsolidated general government debt in 2019: Mt 756.421 billion, an increase of Mt 18.823 billion compared to end-2018.
  - General government debt as % of GDP: 79 percent in 2019, compared to 82.4 percent at end-2018.
  - Nonfinancial public sector debt (excluding units of general government) at end-2019: Mt 130.248 billion, an increase of Mt 15.179 billion over previous year.
  - Nonfinancial public sector debt as % of GDP: 13.6 percent in 2019, up from 12.8 percent at end-2018.
  - Example discrepancy: Petromoc debt reported by MEF in 2019: Mt 10.305 billion; company’s financial report loans: Mt 11.570 billion; unexplained amount: Mt 1.266 billion.
  - BM debt represented about 40 percent of GDP in 2017 and 2018; data for late 2019 not yet available to the central bank.
- Table 5 — Gross Public Sector Debt Stock by Sub-sector (preliminary) — Unit: Mt million / percentage of GDP
  - General government: 2016 702,782; 2017 663,030; 2018 737,598; 2019 756,421
  - % of GDP: 2016 93.4; 2017 78.9; 2018 82.4; 2019 79.1
  - Central government: 2016 701,708; 2017 661,370; 2018 736,076; 2019 754,077
  - Local government: 2016 1,074; 2017 1,658; 2018 1,520; 2019 2,271
  - Social security: 2016 1; 2017 2; 2018 2; 2019 73
  - Nonfinancial public enterprises: 2016 n.a.; 2017 58,864; 2018 115,068; 2019 130,248
  - % of GDP (nonfinancial public enterprises): 2016 n.a.; 2017 7.0; 2018 12.8; 2019 13.6
  - Financial public enterprises (BM): 2016 205,857; 2017 336,261; 2018 361,224; 2019 n.a.
  - % of GDP (BM): 2016 27.3; 2017 40.0; 2018 40.3; 2019 n.a.
  - Total public sector: 2016 n.a.; 2017 1,058,155; 2018 1,213,891; 2019 n.a.
  - % of GDP (total public sector): 2016 n.a.; 2017 125.9; 2018 135.5; 2019 n.a.
  - Memorandum item: GDP: 2016 752,702; 2017 840,526; 2018 895,567; 2019 956,786
  - Source: MF and author’s calculations
- Table 6 — Central Government Gross Debt Stock per holder/instrument (preliminary) — Unit: Mt million / Percentages of GDP
  - Central government debt Total: 2016 702 782; 2017 663 030; 2018 737 598; 2019 754 077
  - % of GDP: 2016 93.4; 2017 78.9; 2018 82.4; 2019 78.8
  - Debt securities: 2016 86 294; 2017 97 649; 2018 111 881; 2019 144 766
  - Loans: 2016 616 487; 2017 565 381; 2018 625 717; 2019 609 311
  - External: 2016 613 998; 2017 554 470; 2018 596 699; 2019 599 482
    - Debt securities (external): 2016 52 818; 2017 43 424; 2018 44 216; 2019 54 774
    - Loans (external): 2016 561 180; 2017 511 046; 2018 552 483; 2019 544 708
  - Domestic: 2016 88 784; 2017 108 560; 2018 140 899; 2019 154 595
    - Debt securities (domestic): 2016 33 476; 2017 54 225; 2018 67 665; 2019 89 992
    - Loans (domestic): 2016 55 307; 2017 54 334; 2018 73 234; 2019 64 603
  - Source: MEF and authors’ calculations
- Observations:
  - Over 80 percent of the BCG debt is represented by loans.
  - External debt represents about 80 percent of the total debt.

### Quarterly central government gross debt (preliminary)
- Table 7 — Quarterly Central Government Gross Debt Stock — unit: Mt million
  - 2018 Q4: Total 736,076; External 596,699; Domestic 139,377
  - 2019 Q1: Total 732,873; External 613,396; Domestic 119,477
  - 2019 Q2: Total 787,102; External 626,662; Domestic 160,440
  - 2019 Q3: Total 797,027; External 625,533; Domestic 171,494
  - 2019 Q4: Total 754,077; External 599,482; Domestic 154,595
  - 2020 Q1: Total 806,832; External 636,032; Domestic 170,800
  - 2020 Q2: Total 862,341; External 679,597; Domestic 182,744
  - Change in 2020: Total 108,264; External 80,115; Domestic 28,149
  - Source: MEF and author’s calculations
- Note: central government debt accumulated an increase of Mt 108.264 billion in 2020, i.e. an increase of 14 percent compared to the end of 2019.

### Net debt and financial assets
- Central government net debt (preliminary) — unit: Mt million
  - 2016: Central government debt net of total financial assets 516,693; % of GDP 68.6; Memorandum item: BCG financial assets 185,015
  - 2017: Central government debt net of total financial assets 408,738; % of GDP 48.6; Memorandum item: BCG financial assets 252,632
  - 2018: Central government debt net of total financial assets 466,874; % of GDP 52.1; Memorandum item: BCG financial assets 269,202
- The BCG’s net debt amounted to Mt 466.874 billion in 2018; central government debt net of total financial assets represented 52 percent of GDP in 2018.
- It was not possible to calculate net debt for the entire public sector due to lack of data on financial assets; recommendation to obtain this information because net debt can be a more accurate indicator of solvency/sustainability.

### PSDS dissemination and recommended actions
- Currently, Mozambican authorities do not transmit the PSDS through the joint World Bank / IMF PSDS program.
- Recommendation: complete missing information, review figures, and transmit validated quarterly public sector debt (QPSDS) data to the World Bank / IMF quarterly database to promote fiscal transparency.
- The mission provided guidance on completing the QPSDS form and instructions on how to transmit the information; preliminary information was filled out and could be sent to international institutions once validated.

*Source: 1mozea2023020 - 41. Government deposits identified in the monetary surveys include Social Security*

### 68. Mozambique will have to start publishing PSDS including the SEE. According to the

### 1mozea2023020 - 68. Mozambique will have to start publishing PSDS including the SEE. According to the

### PSDS publication requirement and context
- Under the implementation of the Sustainable Development Finance Policy (SDFP), part of the IDA comprehensive policy toolkit to address debt vulnerabilities, as from May 2021 the Mozambican government will have to publish the 2020 and subsequent annual debt reports with a coverage that includes the State-owned enterprises (SEE) and Liquefied Natural Gas (LNG) debt.
- The mission’s meeting with the World Bank’s country office team concluded that the country has a new incentive to organize to compile and disseminate the PSDS according to international standards.

### Deadline recommendations (compiled during the mission)
- April 2021 — Mozambique’s PSDS for the years 2016-2019 compiled during the mission. Recommendations:
  - (i) validate and complete the missing information, for subsectors of the public sector;
  - (ii) extend the exercise to other years;
  - (iii) publish in the joint database of the World Bank and the IMF, as well as on the MEF website.
  - Responsible institution: DNGDP
- December 2020 — Quarterly PSDS of Mozambique compiled during the mission. Recommendations:
  - (i) validate the dada compiled during the mission;
  - (ii) extend the exercise to other years;
  - (iii) publish in the joint World Bank and IMF database and on the MEF website.
  - Responsible institution: DNGDP
- December 2021 — Budgetary central government debt. Recommendation:
  - Present information systematically by instrument and counterpart sector, and in a time series format, to make it easier to transpose the compiled data into the IMF reporting templates.
  - Responsible institution: MEF
- Immediately — Debt of public companies. Recommendations:
  - (i) Petromoc: the source of discrepancies between the amounts presented in the MEF debt report and the values recorded in the company’s financial report should be clarified by the IGEPE;
  - (ii) the same reconciliation work should be extended to other companies, to see whether identical situations exist.
  - Responsible institution: IGEPE / MEF
- December 2021 — Coverage of instruments in the PSDS. Recommendation:
  - Extend the instrument coverage of the PSDS to cover most of the instruments listed in the IMF’s PSDS compilation guide (loans, debt securities, SDRs, cash and deposits, insurance, pensions and standardized guarantee schemes, and other accounts payable).
  - Responsible institution: MEF
- December 2021 — Financial assets. Recommendation:
  - The Mozambican authorities should start to compile the financial assets of the general public sector, with a view to compiling public debt net of financial assets (net debt).
  - Responsible institution: MEF

### Resources, training, and technical assistance
- Finding: MEF staff has limited knowledge of the PSDS. Following the approval of the new MEF law (estatuto orgânico) and creation of the new directorate in charge of managing and compiling the public debt, new teams of technical staff were formed with little or no experience in compiling the PSDS.
- Recommendation: Capacity building is needed on the methodological requirements of GFSM 2014 and PSDSG (scope, content of operations, relationship between flows and stocks, etc.). Teams should participate actively in courses organized by the IMF and the World Bank; online courses are a viable alternative due to COVID-19 restrictions.
- Finding: The authorities requested PSDS manuals in Portuguese because methodological literature is in English, creating a barrier for teams without strong English skills.
- Recommendation: Provide manuals and other relevant materials, as well as PSDS training, in Portuguese.
- Finding: Debt management system needs to be updated. External debt is managed through the CS-DRMS 2000+ system; domestic debt is managed through Excel files, posing a risk for robust PSDS compilation due to extensive human intervention.
- Finding: The new debt management system is at an embryonic stage. It will be financed by the European Union and is currently being put out to tender to contract a company to develop the system within eight-month timeline.
- Recommendations for the new system:
  - Include automation of the domestic debt management process.
  - Create a public debt database enabling compilation of PSDSs without major human intervention.
  - Synchronize the new system with e-SISTAFE to ensure consistency between PSDS data and those of the GFS.
  - Automatic generation of the PSDS to guarantee efficiency and effectiveness and allow teams to focus on analyzing debt data.
- Technical assistance: The IMF/STA Government Finance Division is available to support specific GFS and PSDS compilation issues; more comprehensive technical assistance can be provided at the request of the Mozambican authorities.

### Deadline recommendations (resources and system development)
- Continuous — Staff training: Provide training for staff, including through participation in the various GFS and PSDS courses run by the IMF.
  - Responsible institutions: DNPED and DNGDP
- December 2022 — Development of the new debt system: Recommendations:
  - (i) Make sure the new system allows the management of domestic debt in an automated way;
  - (ii) Ensure system allows the archive of debt data and automatic generation of EDSP tables;
  - (iii) Interconnect the domestic and external debt management systems with e-SISTAFE.
  - Responsible institution: DNGDP

### Institutional cooperation on GFS and PSDS (Protocol highlights)
- Proposal to create a Government Finance Statistics Compilation Committee (GFSCC) to organize compilation of GFS and PSDS among MEF, Bank of Mozambique (BM), and National Institute of Statistics (INE).
- GFSCC scope includes:
  - (a) Definition and updating of the universe of institutional units in the general government sector and the extended public sector;
  - (b) Preparation of GFS;
  - (c) Preparation of PSDS.
- GFSCC objectives include:
  - (a) Contribute to the compilation of quality GFS and PSDS by developing institutional cooperation mechanisms;
  - (b) Contribute to the timely dissemination of GFS and PSDS;
  - (c) Contribute to the definition of more efficient mechanisms for sharing basic information on GFS;
  - (d) Facilitate comparison of various data sources and identification of main differences;
  - (e) Coordinate planning of activities to fulfill official statistics production schedules.
- Committee membership and coordination:
  - Members: MEF (DNPED, DNGDP, DNTCEF, DNCP, DNPO, DNPE, GGR), Bank of Mozambique (BM), National Institute of Statistics (INE).
  - Coordinator: Director of the MEF DNPED.
- GFSCC duties include:
  - (a) Establish indicative timetable for compilation of general government statistics, considering deadlines for reporting to international institutions, such as IMF;
  - (b) Contribute to preparation/updating of the Government Finance Statistics Manual and Public Sector Debt Statistics Guide for Compilers and Users;
  - (c) Contribute to identification of required basic information and implementation of solutions to access it;
  - (d) Contribute to preparation of, and participation in, visits of delegations of international institutions;
  - (e) Cooperate in clarifying doubts and discussing methodological options in compilation of GFS and PSDS;
  - (f) Analyze consistency of statistical results obtained.
- Data sharing under the Protocol includes (non-exhaustive list):
  - (a) List of general government entities and other public-sector entities, by subsector;
  - (b) Government deposits by beneficiary, government sector and currency of denomination;
  - (c) Domestic debt, with a breakdown between Treasury Bills and Treasury Bonds;
  - (d) External debt, broken down by counterparty, maturity, and currency of denomination;
  - (e) Gross domestic product;
  - (f) Government finance statistics;
  - (g) Public sector debt statistics.
- Organizational arrangements:
  - GFSCC will meet at least once per semester, with extraordinary meetings as needed.
  - Meeting agendas prepared by the coordinator; meeting summaries prepared on rotation and shared with participants.
- Final provisions: Protocol enters into force on date of signature by all parties; contents may be amended with agreement of signatories; any signatory may terminate participation by formal notice.

*Source: IMF mission report text provided in the content unit.*

### Appendix IV. List of Public Sector Entities

### Appendix IV. List of Public Sector Entities — MOZAMBIQUE (Content unit: 1mozea2023020)

### Metadata
- Latest update: October 2020

### Central administration entities (examples from the list)
- Office of the President of the Republic — Sector: Central administration — Type of entity: Executive management unit
- Ministry of National Defense — Sector: Central administration — Type of entity: Ministry
- National Institute of Statistics — Sector: Central administration — Type of entity: UEO - Public institute
- National Social Security Institute — Sector: Central administration — Type of entity: UEO - Public institute
- Municipal and local administrations listed (examples): Niassa (District), Maputo (City), Lichinga City - Niassa Province (Municipality/Local authority)

### State-owned enterprises, subsidiaries, and selected financial figures (entries with Capital, Stock, State share (value), State share (%))
- 281 ADM - AEROPORTOS DE MOÇAMBIQUE, E.P — SEE - nonfinancial — Public/State-owned enterprise — Capital: 4,347,050.00 — Stock: 4,347,050.00 — State share (value): 100
- 282 C.F.M - CAMINHOS DE FERRO DE MOÇAMBIQUE, E.P — SEE - nonfinancial — Public/State-owned enterprise — Capital: 1,242,981.02 — Stock: 1,242,981.02 — State share (value): 100
- 283 CORREIOS DE MOÇAMBIQUE, E.P — SEE - nonfinancial — Public/State-owned enterprise — Capital: 5,717.62 — Stock: 5,717.62 — State share (value): 100
- 284 EDM - ELECTRICIDADE DE MOÇAMBIQUE, E.P — SEE - nonfinancial — Public/State-owned enterprise — Capital: 6,197,199.57 — Stock: 6,197,199.57 — State share (value): 100
- 285 EMODRAGA - EMPRESA MOÇAMBICANA DE DRAGAGENS, E.P — SEE - nonfinancial — Public/State-owned enterprise — Capital: 2,448,692.60 — Stock: 2,448,692.60 — State share (value): 100
- 286 EMPRESA DE DESENVOLVIMENTO MAPUTO SUL - MAPUTO SUL, E.P — SEE - nonfinancial — Public/State-owned enterprise — Capital: 60,000.00 — Stock: 60,000.00 — State share (value): 100
- 287 ENH - EMPRESA NACIONAL DE HIDROCARBONETOS, E.P — SEE - nonfinancial — Public/State-owned enterprise — Capital: 749,001.00 — Stock: 749,001.00 — State share (value): 100
- 288 HICEP - HIDRÁULICA DE CHÒkWE, E.P — SEE - nonfinancial — Public/State-owned enterprise — Capital: 12,022.00 — Stock: 12,022.00 — State share (value): 100
- 289 IMPRENSA NACIONAL DE MOÇAMBIQUE, E.P — SEE - nonfinancial — Public/State-owned enterprise — Capital: 25,000.00 — Stock: 25,000.00 — State share (value): 100
- 290 PARQUE DE CIÊNCIA E TECNOLOGIA EM MALUANA, E.P — SEE - nonfinancial — Public/State-owned enterprise — Capital: 441,600.00 — Stock: 441,600.00 — State share (value): 100
- 291 REGADIO DE BAIXO LIMPOPO - RBL, E.P — SEE - nonfinancial — Public/State-owned enterprise — Capital: 15,000.00 — Stock: 15,000.00 — State share (value): 100
- 292 RM - RÁDIO MOÇAMBIQUE, E.P — SEE - nonfinancial — Public/State-owned enterprise — Capital: 121,999.38 — Stock: 121,999.38 — State share (value): 100
- 293 TVM - TELEVISÃO DE MOÇAMBIQUE, E.P — SEE - nonfinancial — Public/State-owned enterprise — Capital: 14,908.19 — Stock: 14,908.19 — State share (value): 100
- 294 Banco de Moçambique — SEE - financial — Public/State-owned enterprise — Capital: 2,361,314.00 — Stock: 2,361,314.00 — State share (value): 100
- 295 FARMAC, E.E. — SEE - nonfinancial — Public/State-owned enterprise — Capital: 24.17 — Stock: 24.17 — State share (value): 100
- 296 DINAME - DISTRIBUIDORA NACIONAL DE MATERIAL E.E. — SEE - nonfinancial — Public/State-owned enterprise — Capital: 18,977.63 — Stock: 18,977.63 — State share (value): 100
- 297 TRANSMARÍTIMA, S.A — SEE - nonfinancial — Subsidiary company — Capital: 120,000.00 — Stock: 120,000.00 — State share (value): 100
- 298 STEMA - SILOS E TERMINAL GRANELEIRO DA MATOLA, S.A — SEE - nonfinancial — Subsidiary company — Capital: 245,935.00 — Stock: 245,935.00 — State share (value): 100
- 299 SMM - SOCIEDADE MOÇAMBICANA DE MEDICAMENTOS, S.A — SEE - nonfinancial — Subsidiary company — Capital: 800,000.00 — Stock: 800,000.00 — State share (value): 100
- 300 SEMOC, S.A — SEE - nonfinancial — Subsidiary company — Capital: 34,611.00 — Stock: 34,611.00 — State share (value): 100
- 301 MONTE BINGA, S.A — SEE - nonfinancial — Subsidiary company — Capital: 250.00 — Stock: 250.00 — State share (value): 100
- 302 BANCO NACIONAL DE INVESTIMENTOS - BNI, S.A — SEE - financial — Subsidiary company — Capital: 2,240,000.00 — Stock: 2,240,000.00 — State share (value): 100
- 303 SOCIEDADE NOTÍCIAS, S.A — SEE - nonfinancial — Subsidiary company — Capital: 436,069.78 — Stock: 435,066.82 — State share (value): 100
- 304 DOMUS - SOCIEDADE DE GESTÃO IMOBILIÁRIA, S.A — SEE - nonfinancial — Subsidiary company — Capital: 1,270.00 — Stock: 1,193.80 — State share (value): 94
- 305 LAM - LINHAS AÉREAS DE MOÇAMBIQUE, S.A — SEE - nonfinancial — Subsidiary company — Capital: 708,175.96 — Stock: 645,502.00 — State share (value): 91
- 306 TDM - TELECOMUNICAÇÕES DE MOÇAMBIQUE, S.A — SEE - nonfinancial — Subsidiary company — Capital: 2,800,000.00 — Stock: 2,520,000.00 — State share (value): 90
- 307 CAIC - COMPLEXO AGRO-INDUSTRIAL DE CHOCKWE, SA — SEE - nonfinancial — Subsidiary company — Capital: 500.00 — Stock: 450.00 — State share (value): 90
- 308 HCB - HIDROELÉCTRICA DE CAHORA BASSA, S.A — SEE - nonfinancial — Subsidiary company — Capital: 23 558 108.58 — Stock: 20 024 392.29 — State share (value): 85
- 309 PETROMOC, S.A — SEE - nonfinancial — Subsidiary company — Capital: 1,800,000.00 — Stock: 1,440,000.00 — State share (value): 80
- 310 EMOPESCA, S.A — SEE - nonfinancial — Subsidiary company — Capital: 29,500.00 — Stock: 23,600.00 — State share (value): 80
- 311 EMOSE - EMPRESA MOÇAMBICANA DE SEGUROS, S.A — SEE - financial — Subsidiary company — Capital: 157,000.00 — Stock: 109,900.00 — State share (value): 70
- 312 EMATUM - EMPRESA MOCAMBICANA DE ATUM, SA — SEE - nonfinancial — Subsidiary company — Capital: 15,000.00 — Stock: 9,900.00 — State share (value): 66
- 313 MEDIMOC, S.A — SEE - nonfinancial — Subsidiary company — Capital: 59,262.00 — Stock: 38,354.37 — State share (value): 65
- 314 COMPANHIA PIPELINE MOÇ./ZIMBA., LDA. — SEE - nonfinancial — Subsidiary company — Capital: 80,000.00 — Stock: 40,000.00 — State share (value): 50
- 315 MOZAÍCO DO ÍNDICO, S.A — SEE - nonfinancial — Subsidiary company — Capital: 60,000.00 — Stock: 29,400.00 — State share (value): 49
- 316 TECNAUTO - EMPRESA DE ASSISTÊNCIA TÉCNICA AUTO, LDA — SEE - nonfinancial — Subsidiary company — Capital: 3,446.00 — Stock: 1,636.85 — State share (value): 48
- 317 DIÁRIO DE MOÇAMBIQUE, S.A — SEE - nonfinancial — Subsidiary company — Capital: 2,550.00 — Stock: 1,020.00 — State share (value): 40
- 318 EMEM – EMPRESA MOÇAMBICANA DE EXPLORAÇÃO MINEIRA, S.A — SEE - nonfinancial — Subsidiary company — Capital: 1,500,000.00 — Stock: 525,000.00 — State share (value): 35
- 319 MOGAS, SOCIEDADE MOCAMBICANA DE GASES COMPRIMIDOS, SA — SEE - nonfinancial — Subsidiary company — Capital: 40,000.00 — Stock: 13,500.00 — State share (value): 34
- 320 GAPI - SOC. PARA APOIO A PEQUENOS PROJ.DE INVESTIMENTO, S.A — SEE - nonfinancial — Subsidiary company — Capital: 120,000.00 — Stock: 36,000.00 — State share (value): 30
- 321 CARTEIRA MÓVEL, S.A — SEE - nonfinancial — Subsidiary company — Capital: 125,000.00 — Stock: 37,500.00 — State share (value): 30
- 322 MCEL - MOÇAMBIQUE CELULAR, S.A — SEE - nonfinancial — Subsidiary company — Capital: 3,000,000.00 — Stock: 780,000.00 — State share (value): 26
- 323 HOTEL CARDOSO, S.A — SEE - nonfinancial — Subsidiary company — Capital: 9,363.20 — Stock: 2,411.96 — State share (value): 26
- 324 MEXTUR, LDA. — SEE - nonfinancial — Subsidiary company — Capital: 60.00 — Stock: 15.00 — State share (value): 25
- 325 TEXTÁFRICA, S.A — SEE - nonfinancial — Subsidiary company — Capital: 300.00 — Stock: 68.10 — State share (value): 23
- 326 AUTO - GÁS, S.A — SEE - nonfinancial — Subsidiary company — Capital: 40,604.00 — Stock: 8,932.88 — State share (value): 22
- 327 TECNOMECÂNICA, LDA — SEE - nonfinancial — Subsidiary company — Capital: 130.00 — Stock: 26.00 — State share (value): 20
- 328 STEIA 2000 - SOC.TÉCNICA DE EQUIP.IND.E AGRÍCOLA, S.A — SEE - nonfinancial — Subsidiary company — Capital: 24,800.00 — Stock: 4,960.00 — State share (value): 20
- 329 SOMEC - SOC. MINEIRA DE CUAMBA, S.A — SEE - nonfinancial — Subsidiary company — Capital: 16.00 — Stock: 3.20 — State share (value): 20
- 330 SOGERE - FÁBRICA DE REFRIGERANTES DE GAZA, (INAR) S.A — SEE - nonfinancial — Subsidiary company — Capital: 1,000.00 — Stock: 200.00 — State share (value): 20
- 331 MOZRE - MOÇAMBICQUE RESSEGUROS, S.A (EX ZIMRE, S.A) — SEE - nonfinancial — Subsidiary company — Capital: 33,000.00 — Stock: 6,600.00 — State share (value): 20
- 332 MOÇAMBIQUE, PREVIDENTE - SOCIEDADE GESTORA DE FUNDO DE PENSÕES, S.A — SEE - nonfinancial — Subsidiary company — Capital: 24,000.00 — Stock: 4,800.00 — State share (value): 20
- 333 MÁRMORES DE MONTEPUEZ - MARMONTE, S.A — SEE - nonfinancial — Subsidiary company — Capital: 60,000.00 — Stock: 12,000.00 — State share (value): 20
- 334 IFLOMA - INDÚSTRIAS FLORESTAIS DE MANICA, S.A — SEE - nonfinancial — Subsidiary company — Capital: 39,062.50 — Stock: 7,812.50 — State share (value): 20
- 335 IBC - INDÚSTRIA DE BORRACHA E CALÇADO, S.A — SEE - nonfinancial — Subsidiary company — Capital: 5,000.00 — Stock: 1,000.00 — State share (value): 20
- 336 HIDROMOC - BEIRA, S.A (EX-HIDROMOC,E.E.DELG. R. CENTRO ) — SEE - nonfinancial — Subsidiary company — Capital: 5,801.86 — Stock: 1,160.37 — State share (value): 20
- 337 GERALCO, S.A — SEE - nonfinancial — Subsidiary company — Capital: 6,500.00 — Stock: 1,300.00 — State share (value): 20
- 338 GEOMOC, S.A — SEE - nonfinancial — Subsidiary company — Capital: 8,952.00 — Stock: 1,790.40 — State share (value): 20
- 339 COMPANHIA MOÇAMBICANA DE HIDROCARBONETOS-CMH, S.A — SEE - nonfinancial — Subsidiary company — Capital: 593,411.50 — Stock: 118,682.30 — State share (value): 20
- 340 COMPANHIA MOÇAMBICANA DE GASODUTO-CMG, S.A — SEE - nonfinancial — Subsidiary company — Capital: 70,000.00 — Stock: 14,000.00 — State share (value): 20
- 341 CHÁ NAMAE, LDA. — SEE - nonfinancial — Subsidiary company — Capital: 1,500.00 — Stock: 300.00 — State share (value): 20
- 342 AUTOVISA - SERVIÇOS AUTO, S.A. (EX-EMOCAT,E.E-U I) — SEE - nonfinancial — Subsidiary company — Capital: 12,000.00 — Stock: 2,400.00 — State share (value): 20
- 343 AGRO-ALFA - FUNDIÇÃO, S.A — SEE - nonfinancial — Subsidiary company — Capital: 5,658.00 — Stock: 1,131.60 — State share (value): 20
- 344 MILLENNIUM BIM, S.A — SEE - nonfinancial — Subsidiary company — Capital: 4,500,000.00 — Stock: 770,400.00 — State share (value): 17
- 345 AÇUCAREIRA DE MOÇAMBIQUE, S.A — SEE - nonfinancial — Subsidiary company — Capital: 1,506,471.41 — Stock: 225,970.71 — State share (value): 15
- 346 CELMOQUE - CABOS DE ENERGIA E TELECOMUNICAÇOES DE MOÇ., S.A — SEE - nonfinancial — Subsidiary company — Capital: 23,500.00 — Stock: 3,480.35 — State share (value): 15
- 347 AÇUCAREIRA DE XINAVANE, S.A — SEE - nonfinancial — Subsidiary company — Capital: 3,204,500.00 — Stock: 384,540.00 — State share (value): 12
- 348 CIMENTOS DE MOÇAMBIQUE, S.A — SEE - nonfinancial — Subsidiary company — Capital: 1,000,000.00 — Stock: 118,900.00 — State share (value): 12
- 349 MOBEIRA - MOAGEM DA BEIRA, S.A — SEE - nonfinancial — Subsidiary company — Capital: 193,088.00 — Stock: 19,308.80 — State share (value): 10
- 350 CEGRAF - SOCIEDADE GRÁFICA, S.A — SEE - nonfinancial — Subsidiary company — Capital: 28,881.38 — Stock: 2,449.14 — State share (value): 8
- 351 CIM - COMPANHIA INDUSTRIAL DA MATOLA, S.A — SEE - nonfinancial — Subsidiary company — Capital: 638,651.58 — Stock: 46,046.78 — State share (value): 7
- 352 GRAPHIC - COMÉRCIO E INDÚSTRIA, LDA. — SEE - nonfinancial — Subsidiary company — Capital: 7,346.02 — Stock: 500.26 — State share (value): 7
- 353 GRUPO MADAL, S.A — SEE - nonfinancial — Subsidiary company — Capital: 15,286.65 — Stock: 764.33 — State share (value): 5
- 354 COCA - COLA SABCO (MOÇAMBIQUE), S.A — SEE - nonfinancial — Subsidiary company — Capital: 1,286,476.00 — Stock: 64,323.80 — State share (value): 5
- 355 COMPANHIA DE SENA, S.A — SEE - nonfinancial — Subsidiary company — Capital: 3,134,177.50 — Stock: 156,167.00 — State share (value): 5
- 356 MOZAL, S.A. — SEE - nonfinancial — Subsidiary company — Capital: 10 253 585.00 — Stock: 394,763.02 — State share (value): 4
- 357 SOCIEDADE MALONDA, S.A (EX. SOC. DE DESENVOLVIMENTO MOSÁGRIUS) — SEE - nonfinancial — Subsidiary company — Capital: 11,526.00 — Stock: 345.78 — State share (value): 3
- 358 NORSAD, SA — SEE - nonfinancial — Subsidiary company — Capital: 4,809,741.00 — Stock: 144,292.23 — State share (value): 3
- 359 CERVEJAS DE MOÇAMBIQUE (EX-MAC-MAHON), S.A — SEE - nonfinancial — Subsidiary company — Capital: 224,178.03 — Stock: 3,990.37 — State share (value): 2
- 360 FUNDAÇÃO MALONDA — Central administration — Nonprofit institutions — Capital: 25,000.00 — Stock: 25,000.00 — State share (value): 100

### Nonprofit institutions and extrabudgetary units
- FUNDAÇÃO MALONDA — Central administration — Nonprofit institutions — Capital: 25,000.00 — Stock: 25,000.00 — State share (value): 100
- Extrabudgetary Units (EBU) — Public institutes (includes hospitals and universities) are listed in the broader inventory.

*Appendix IV. List of Public Sector Entities — Latest update: October 2020*

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_Source: https://www.imf.org/-/media/files/publications/cr/2023/english/1mozea2023020.pdf_