Key facts
- Commercial bank credit to Mozambique's private economy grew 2.7% year-on-year in March.
- Credit to households increased by 6.5% year-on-year, reaching MZN 104.4 billion.
- Trade credit saw a 2.9% year-on-year increase.
- Sectors like agriculture, manufacturing, and construction showed soft credit growth.
- Net credit to the government fell by 10.1% year-on-year.
In March, Mozambique's commercial banks reported a modest year-on-year increase of 2.7% in credit extended to the private economy, reaching MZN 104.4 billion. This growth was primarily supported by households, whose credit rose by 6.5% year-on-year, and the trade sector, which saw a 2.9% increase. However, credit to other significant sectors including agriculture, manufacturing, construction, public works, and tourism remained soft. Concurrently, net credit to the government declined by 10.1% year-on-year, though sovereign exposure continues to represent a substantial portion of domestic bank balance sheets. The Bank of Mozambique maintained its MIMO rate at 9.25% in May, with the prime rate standing at 15.50%. Inflation accelerated to 4.41% in April, with the central bank citing potential spillovers from the Middle East conflict impacting fuel and food prices.