Mozambique is currently facing a severe economic crisis after news broke in 2016 that the government had not disclosed nearly $1.5 billion of debt, violating its IMF borrowing agreement as well as its own laws. Since the discovery of the hidden debt, the IMF has suspended its loan disbursements and a number of other donors, including UK, EU, and the World Bank, have also temporarily suspended support. The government is heading toward default and is unable to deliver on its sovereign guarantee on the loans of the state-owned companies.

The impacts of these secret financial deals are already manifesting themselves. The Mozambican currency has fallen 45 percent, making it the worst performing currency on the African continent last year. An independent forensic audit is underway now to review the hidden loans. With several major resource projects in the pipeline, the government is under scrutiny to leverage resource wealth for economic growth and to lift the country from its perilous situation.

We convene this lunchtime panel discussion to consider the factors that have led to the economic situation in Mozambique and discuss policy responses for addressing the crisis and preventing mismanagement of resources and wealth in the future. Speakers include representatives from international think tanks, policy experts and Mozambican civil society.