The government intends to orient economic policy toward strengthening national production chains, seeking to reduce the excessive concentration of growth in the extractive industry, a sector that continues to dominate the country’s export structure.
According to Lusa, the position is contained in the Ministry of Finance’s report on the 2025 budget execution, in which the Executive acknowledges that the national economy faces structural weaknesses and has recently performed below expectations.
According to the document, the current relatively moderate growth trajectory reinforces the need for robust and consistent economic measures capable of boosting the main productive sectors and creating a more solid basis for economic growth.
In this regard, the Government advocates a more prudent and selective economic policy orientation, capable of addressing the structural constraints that have conditioned the evolution of the Mozambican economy over the last few years.
“The deepening of policies that concentrate growth in primary sectors, especially in the extractive industry, without the corresponding development of productive chains, should be discouraged,” the report states.
The document adds that the expansion of current public spending, without direct impact on productive capacity, as well as the dispersion of public investment in projects with limited economic effect, proved insufficient to halt the contraction of Gross Domestic Product (GDP).
Data released last week by the National Statistics Institute (INE) indicate that the Mozambican economy recovered in the last quarter of 2025, with growth of 4.67%. Despite this positive development, the country ended the year with a year-on-year contraction of 0.52%.
The negative annual performance comes after a prolonged period of economic instability associated, among other factors, with the violent protests that followed the general elections of October 9, 2024, which over more than five months caused around 400 deaths, as well as the destruction of businesses and public infrastructure.
“The deepening of policies that concentrate growth in primary sectors, especially in the extractive industry, without the corresponding development of production chains, should be discouraged,” he says.
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INE data also indicate that GDP at market prices fell by 0.85% in the third quarter of 2025, compared to the same period in 2024. In the first and second quarters of the same year, the economy contracted by 3.92% and 0.94%, respectively, after a 5.68% decline in the fourth quarter of 2024.
Mozambique’s economic structure remains heavily dependent on the exploitation of natural resources, particularly coal and natural gas, which account for a significant share of national exports, according to previous data from the Bank of Mozambique.
The report also warns of the risks associated with policies that could compromise macroeconomic stability, particularly through fiscal imbalances, inflationary pressures, or exchange rate instability.
According to the Ministry of Finance, these factors tend to exacerbate the weakening of domestic demand and the decline in private investment, a situation evidenced by the unfavorable performance of various branches of the tertiary sector throughout 2025.
Conversely, the document argues that economic recovery should be based on sectors with greater capacity to generate spillover effects in the economy, highlighting manufacturing, energy, construction, agriculture, and logistics services.
With regard to public investment, the Executive advocates a more selective approach geared towards projects with a high multiplier effect, particularly critical economic infrastructure capable of stimulating domestic production, boosting employment, and promoting self-employment opportunities for young people.
The report also highlights the importance of strengthening support instruments for the private sector, particularly micro, small, and medium-sized enterprises (SMEs), which are considered essential for revitalizing the domestic market and boosting commercial activity, including informal trade.
