The Bank of Mozambique (BdM) has identified post-election tension, military instability in Cabo Delgado, and climate shocks as the main vulnerabilities that affected the country’s financial stability in 2025.
According to Lusa, this assessment is included in the Bank of Mozambique’s 2025 Financial Stability Report, which states that the stability of the financial system was constrained by pressure on public finances, security risks in Cabo Delgado in the north of the country, and a period marked by post-election tensions and exposure to climate shocks.
According to the document, the protests that followed the October 2024 general elections—which lasted five months—had an impact on economic activity across various sectors, affecting the movement of people and goods, reducing business volume, and contributing to rising unemployment.
The Bank of Mozambique notes that “the effects of post-election tensions on most sectors of activity influenced the economy’s performance,” in a context that affected business operations and the dynamics of the national economy.
With regard to Cabo Delgado—a province rich in natural gas that has been affected since 2017 by an armed insurgency that has displaced more than 1 million people—the central bank believes that instability and insecurity continue to hinder the distribution of goods and undermine investor confidence, thereby hampering economic recovery in several districts.
The report also highlights the impacts of Cyclones Dikeledi and Jude, which destroyed public and private infrastructure and exacerbated risks for borrowers and financial institutions.
Despite these vulnerabilities, the Bank of Mozambique concludes that the Mozambican financial system remained stable, sound, and well-capitalized throughout 2025. The banking sector’s solvency ratio reached 28.14%, above the regulatory minimum of 12%, while the systemic risk index remained at a moderate level.
The Mozambican economy rebounded in the last quarter of 2025, reversing four consecutive quarters of decline, with growth of 4.67% compared to the same period in 2024. Nevertheless, it ended the year with a year-over-year contraction of 0.52%, according to data from the National Institute of Statistics (INE).
In the first quarter of 2026, the economy recorded 0.1% growth in Gross Domestic Product at market prices (GDPmp), following a 2.9% decline in the same period of 2025. This expansion was driven by the tertiary sector, which grew by 3.5%, with the Hotels and Restaurants sector standing out with a 5.1% increase, and the Trade and Repair Services sector growing by 4.5%.
For 2025, the government had projected economic growth of 2.9%, but that forecast was ultimately revised downward. For 2026, the government reduced its economic growth forecast from 2.8% to 0.59% due to the impacts of the January floods, announcing a post-flood reconstruction plan valued at 1.4 billion euros.
Source: Diário Económico
Original article: https://www.diarioeconomico.co.mz/2026/07/10/economia/bdm-aponta-tensao-pos-eleitoral-cabo-delgado-e-clima-como-riscos-a-estabilidade-financeira-em-2025/
