The Bank of Mozambique (BoM) reported that pension fund deposits in the banking sector stood at 3.3 billion meticais (USD 51.1 million) last year, marking a 75% decrease compared to the 13.1 billion meticais (USD 203.2 million) recorded in 2023.
“The amount of pension fund deposits, from a total of 17 complementary pension funds and two mandatory social security institutes, reached 3.3 billion meticais as of December 31, 2024,” stated the central bank in its financial stability report.
In the document, BdM explained that the drop was “likely due to a preference for alternative investments over bank deposits. During the reference period, pension fund deposits accounted for 0.47% of total banking sector deposits, compared to 2.06% in the same period of 2023.”
The financial authority further noted that the declining share of deposits in the banking system demonstrates that pension fund resources are becoming a less significant source of financing, with limited impact on liquidity risk assessment. In 2020, this share was 4.23% and has been declining ever since.
“Pension funds have proven to be a less significant source of financing for the banking sector, although still relevant for the Securities Market (MVM). Pension fund deposits accounted for 0.47% of total banking sector deposits. Meanwhile, the value of securities held by pension funds represented 30.47% of the total securities in the MVM sector,” the report concluded.
Source: DE
