Mozambique's Business Competitiveness Index (ICEM) stood at 36.09 points out of 100 in the first half of 2026, placing the country's business environment in the 'CCC – Very Weak' category, according to data presented on Friday, 18 September, in Maputo by the Foundation for Business Competitiveness (FUNDEC).
The results were presented by FUNDEC economist Ivânia Matisse during the 2nd edition of the FUNDEC Economic Outlook, held in Maputo. The event brought together various stakeholders to discuss employment, productivity, competitiveness and the outlook for business sector development in Mozambique.
In presenting the first-half report, Ivânia Matisse highlighted an uneven performance across different sectors of the economy, with significant productivity gains in some activities and losses in others. 'The ICEM reveals a business economy with uneven evolution,' the document presented at the event states.
According to the data, agriculture recorded productivity growth of 80.11% per company, while the extractive industries advanced 49.9%. Financial activities also showed an improvement of 10.88%. In contrast, productivity per company fell 26.54% in manufacturing, 23.15% in trade and services, 9.52% in transport and logistics, and 6.32% in construction and public works.
In the productivity-per-worker indicator, agriculture again posted the strongest growth, rising 94.41%, followed by extractive industries at 54.19%. Manufacturing recorded a decline of 22.85%, while trade and services fell back 24.60%.
One of the key signals identified by FUNDEC concerns the difficulty of converting increased investment into tangible productivity gains. Six of the seven sectors analysed recorded growth in capital asset investment, known as CAPEX.
In manufacturing, for example, CAPEX rose 5.14%, yet both productivity per company and productivity per worker declined. 'The increase in investment has not yet translated into equivalent productivity gains,' the report notes.
FUNDEC considers that this deterioration may reflect factors limiting the use of credit by companies.
The economist explained, on the basis of the data presented, that the problem of business competitiveness should no longer be analysed solely in terms of the quantity of capital available to companies, but also their capacity to convert it into concrete economic results. 'The challenge shifts from 'how much capital do companies have?' to 'how efficiently do they transform capital into productivity, employment and added value?'' the study states.
Another data point considered cause for concern is the evolution of business financing. Credit depth declined across all sectors analysed during the period, with agriculture recording the steepest deterioration at 28.84%. In manufacturing, the reduction stood at 19.74%, while in construction and public works it reached 16.04%.
FUNDEC considers that this deterioration may reflect factors limiting companies' use of credit, or difficulties within the financial system in expanding financing directed at productive activity. The report also identifies a generalised reduction in financial intermediation.
Despite these weaknesses, the data show that capital intensity increased across all sectors assessed, signalling greater capitalisation of companies. FUNDEC cautions, however, that this growth does not necessarily translate into greater efficiency or productivity. 'Capitalisation is increasing, but that does not automatically mean greater productivity,' the document states.
To improve competitiveness, the institution argues that business investment should be directed towards areas capable of generating effective efficiency gains, namely technology, modernisation of production processes, digitalisation, equipment, energy efficiency, workforce skills development and innovation. 'Investing more is necessary; investing better and using capital productively is the next step,' the report concludes.
The FUNDEC Economic Outlook aims to establish itself as a forum for analysis and dialogue on the evolution of Mozambique's economy and business sector, bringing together private sector representatives, experts and other stakeholders to debate the main constraints and opportunities for strengthening national competitiveness.
Source: Diário Económico
Original article: https://www.diarioeconomico.co.mz/2026/09/18/negocios/empresas/fundec-indice-de-competitividade-empresarial-manteve-se-num-nivel-muito-fraco-no-1-o-semestre/
