Mozambique: Debt worries are overblown

The revelation that Mozambique’s government has failed to disclose the true level of its foreign debts has hit sentiment towards the country, which had been seen as an African outperformer. But while the situation is serious, the risk of a full-blown crisis has been overstated. More importantly, we doubt that the scandal will affect foreign gas firms’ decision on whether or not to commit to investments that will have a much larger impact on the economic outlook beyond the next six to nine months.