Maputo, Dec. 4, 2025 (Lusa) - Mozambique's economic activity recovered in November, remaining in positive territory for the second consecutive month, with new business growing "at the fastest pace in 17 months," according to the PMI index released on Thursday by Standard Bank.
"Production in Mozambique increased at a faster pace in November, supported by a solid recovery in new business and increased employment. It should be noted that new orders recorded their largest increase since June 2024. However, companies continued to reduce stocks, while pressure on input prices accelerated," the study reads.
Quoted in the document, Standard Bank Mozambique's chief economist, Fáusio Mussá, notes that most of the November PMI (Purchasing Managers Index) sub-indices show "a consecutive monthly increase in the respective business indicator", with "some transfer of companies' cost increases to higher selling prices" being noteworthy.
He also warns that the possibility of Mozal, one of the largest smelters in Africa and the largest industry in Mozambique, closing in March next year, as announced, "if the company is unable to secure a favourable electricity tariff, will put additional temporary pressure on economic growth, public finances and foreign currency liquidity".
"Mozambique's economy recorded negative GDP [Gross Domestic Product] growth in the first three quarters of 2025, averaging -1.9%, indicating a slow recovery from the impact of post-election tension. We expect GDP growth to turn positive in the last quarter of 2025, supported by favourable base effects, but with a high risk of turning negative from the second quarter of 2026 onwards if Mozal is closed," Mussá warns.
The PMI index had risen from 49.1 in June to positive territory in July, at 50.7, but in August it fell back to negative figures, 49.9, and in September to 49.4, recovering in October to 50.4 points and in November to 50.8.
PMI indicators above 50 points point to an improvement in business conditions compared to the previous month, while indicators below that figure show a deterioration.
The latest report states that companies received "higher volumes of new orders for the second consecutive month" in November and that the growth rate "accelerated and was the sharpest recorded in almost two years and a half".
"In particular, the five sub-sectors monitored by the PMI survey saw an increase in new business, with panel members reporting growing customer demand and the success of new products. Subsequently, companies' output expanded during the latest survey period, with growth strengthening at the fastest pace since July," it notes.
It adds that, in general, companies "said that improved demand had encouraged an increase in activity" in the month before and that employment was "another area that saw a boost in November," with the latest data "signalling the strongest round of job creation since July of last year."
"As with new orders, the increase in hiring was widespread across all sectors monitored. In contrast, companies reduced their inventories for the seventh consecutive month, indicating a lack of appetite for holding reserve stocks," the Standard Bank study also points out.
PVJ/AYLS // AYLS
Lusa
