Prime Minister Benvinda Levi stated on Wednesday, March 11, in Parliament, that agriculture and industry are driving economic recovery, showing “signs of stabilization after the declines recorded during the post-election protests of 2024.”
“Our country has been implementing measures and actions that contribute to political stability and the normal functioning of institutions, as well as the preservation of public order, calm, and security. It is in this context that the national economy has been showing signs of macroeconomic stabilization and gradual recovery after a period of slowdown,” she said.
In her briefing to the Assembly of the Republic, the Prime Minister highlighted economic growth of 4.67% in the fourth quarter of 2025, following four consecutive quarters of declines. “The gradual recovery of our economy is being driven by the positive performance of agricultural, livestock, and forestry production, which reaffirms the structural role of agriculture in food security and income generation for Mozambicans.”
She also emphasized the manufacturing industry as one of the sectors helping the economic recovery. According to her, the sector grew by 13.58% in the fourth quarter of 2025, indicating a revitalization of activity in the country. She added that the structural projects launched and approved between 2025 and 2026 provide important support for this recovery.
“Overall, these investments will contribute to strengthening economic growth, improving the balance of payments, diversifying production, and generating more jobs and income for Mozambicans. It is important to note that the materialization of these investments will occur gradually, making it necessary to continue implementing measures and actions that contribute to maintaining macroeconomic and institutional stability,” she stated.
Recently, the British consulting firm Oxford Economics ranked Mozambique as currently the country with the highest risk level in Africa, surpassing Zimbabwe in the risk index. The institution also anticipates a depreciation of the metical by about 25% by the end of the year.
According to the African Country Risk Report, sent to clients and cited by Lusa, Mozambique scored over 75 points, the highest among the 25 nations analyzed. Malawi and Zimbabwe occupy the second and third positions, respectively, while Angola appears in seventh place.
The report noted that “a depreciation seems inevitable for the metical; an unsustainable debt burden means the government will have to comply with the demands of the International Monetary Fund (IMF), with an exchange rate reform likely to be one of the conditions for an aid package, so we anticipate that the metical could lose one-fifth of its value before the second half of the year.”
The consultancy highlighted that the Mozambican economy faced new shocks in recent months, including “the worst floods in decades, the planned shutdown of the Mozal smelter, and maintenance work at the Coral South FLNG,” a floating gas production platform off Cabo Delgado Province.
The release of the report coincides with a downward revision of the economic growth forecast for this year, from 2.5% to 0.3%. Even so, GDP data indicate that in the fourth quarter of 2025, the economy grew by 4.67% compared to the same period in 2024.
Despite this quarterly recovery, which ended four consecutive quarters of declines, the country recorded an annual recession of 0.52% in 2025, according to the National Institute of Statistics. The last growth period before that occurred in the third quarter of 2024, before the elections marked by strong social unrest, when an expansion of 5.58% was observed.
Source: Diário Económico
