Maputo, July 25, 2025 (Lusa) - Mozambican business leaders on Friday called for macroeconomic policies to promote exchange rate stability in the country in the face of foreign currency shortages, emphasising that decisive action will keep business thriving.
“The private sector calls for the implementation of macroeconomic policies that promote greater exchange rate stability and encourage domestic foreign exchange generation through export diversification, increased domestic production to replace imports, and mechanisms to encourage foreign direct investment,” especially in sectors that contribute most to foreign currency earnings,” said Álvaro Massingue, president of the Confederation of Economic Associations of Mozambique (CTA).
He was speaking during the 11th Business Environment Monitoring Council with Mozambique’s government, which is taking place today in Maputo, where he acknowledged that the foreign exchange issue is influencing the economy.
“The persistent shortage of foreign exchange in the country is one of the main constraints to the efficient operation of productive sectors, particularly manufacturing, commercial agriculture, tourism, mining and logistics. Accessing foreign currency poses a challenge, delaying the acquisition of raw materials, agricultural inputs, spare parts, fuel and essential equipment, and production levels, productivity and competitiveness of national companies depend on securing these resources, Massingue pointed out.
In the same statements, the president of the CTA, the highest representative of the private sector, said that the shortage of foreign currency “weakens the ability to fulfil contracts with international suppliers” and compromises value chains.
“In some cases, it leads to partial or total paralysis of operations, job losses and reduced tax revenues,” said the head of Mozambique’s employers.
On 15 July, the Mozambican president accused the banking sector of “creating” foreign currency shortages and turning them into “business opportunities,” reassuring the public that foreign currency for dividend distribution has always been available.
Mozambique’s net international reserves (RIL) reached a four-year high in May, growing to $3.825 billion (€3.270 billion), according to central bank data that Lusa reported this month.
These reserves, in foreign currency, had recorded their lowest value in about a year in February, falling to $3.593 billion (€3.072 billion), before experiencing three consecutive monthly increases. They grew by 1% during March to $3.619 billion (€3.094 billion), 4.3% in April, and a further 1.5% in May, according to the latest statistical report from the Bank of Mozambique.
In May, international reserves covered more than three months of estimated import needs.
The governor of the Bank of Mozambique, Rogério Zandamela, acknowledged in May that the country had experienced a “dollarisation” of the economy between the end of 2024 and the beginning of this year, following the post-election crisis, particularly in the attempt to withdraw foreign currency from banks.
“Today, looking back, clarity emerged later, but January was certainly the most difficult moment [...], I would say from the end of the year, specifically December and January. Then things calmed down,” said the governor, responding to journalists at the end of the Monetary Policy Committee (CPMO) meeting.
Journalists asked Zandamela, in particular, about the guarantee he gave at the end of March that there would be sufficient liquidity in the foreign exchange market, when business leaders sought greater access to foreign currency for imports, and the central bank adopted regulations the following month to facilitate the process.
PME/ADB // ADB.
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