Industrial production in Mozambique fell by 3.6% in 2023, to 147.2 billion meticals. According to the report released on Tuesday (19) by the Ministry of Economy and Finance (MEF), in 2022 the sector had an execution of around 152.7 billion meticals.
“The sector’s performance was negative, influenced by the fall in the basic metallurgical industry, due to the reduction in the price of aluminium on the international market,” it said.
The document pointed out that the basic metallurgy industries produced the equivalent of 50.9 billion meticals in 2023, 6.8 per cent less than in 2022, followed by food, with 35.1 billion meticals, and beverages, with 22.5 billion meticals.
“The industries located in Maputo province produced the most, with 55.2 per cent of the total, followed by those in Nampula (23.8 per cent) and Sofala (10.7 per cent),” he said.
Recently, the Bank of Mozambique (BdM) revealed that economic growth in the country slowed slightly in the fourth quarter of 2023, to the equivalent of 5.36 per cent of Gross Domestic Product (GDP), while in the previous quarter this growth stood at 5.92 per cent.
“The slight reduction is essentially the result of less marked growth in the extractive industry and the negative performance of the manufacturing industry,” explained the central bank.
In February, the government announced that the national territory had recorded economic growth of 5 per cent in 2023 compared to 4.4 per cent in 2022, highlighting an “economic expansion” that exceeded the regional average of the South African Development Community (SADC).
“Economic growth for 2023 reached 5 per cent, compared to 4.4 per cent in 2022, driven by Extractive Industries, Tourism, Agriculture, Transport and Communications, among others,” said Ludovina Bernardo, spokesperson for the Executive.
According to her, the growth was the result of policies and reforms implemented during the year, especially the economic reforms adopted to make economic activities in the private sector “more dynamic” and to attract investment.
“In this context, there was a positive trend in average inflation, which registered 7.1 per cent against an initial forecast of 11.5 per cent. Net International Reserves were above the three months forecast in the Economic and Social Plan and State Budget and reached the 4.3 months mark for covering imports of non-factorial goods and services, translating into greater credibility and greater capacity to absorb shocks to the balance of payments,” he added.
