Pension fund deposits in Mozambican banks fell again in the first half of 2025, registering a 19.4% drop between December 2024 and June 2025, to a total of $42.3 million, according to data from the Bank of Mozambique.
The regulator’s latest update compares this figure with the $52.5 million recorded at the end of 2024. According to the central bank, this reduction is mainly due to the redirection of financial investments by pension funds, which have favored long-term investments in the Securities Market (MVM) over short-term deposits with commercial banks.
Between December 2024 and June 2025, the weight of pension funds in total bank deposits decreased from 0.47% to 0.36%, which, according to the Bank of Mozambique, confirms that these resources have been playing an increasingly less significant role in the financing of the banking system, with a reduced impact on the overall risk assessment of the sector.
Nevertheless, the report highlights that, due to their profile, pension funds — both mandatory and supplementary — continue to be relevant sources of financing for the MVM, a market segment that, according to the central bank, benefits from the stable and predictable nature of the capital mobilized by these institutions.
The regulator emphasizes that, due to their structural function, pension fund management entities contribute positively to financial stability by promoting savings and channeling resources into long-term investments, with positive effects on reducing capital market volatility.
It should be noted that, in 2024, pension fund deposits in Mozambican banks had already fallen sharply by 75%, from US$206.3 million in December 2023 to US$52.5 million at the end of that year.
This downward trend confirms the structural movement away from traditional banking by pension funds.
