The Governor of the Bank of Mozambique (BdM), Rogério Zandamela, stated this Wednesday, November 5, that the reduction of the benchmark interest rate throughout 2025, following the historic highs recorded in 2024, has contributed to increased lending to the economy. The measure is part of the central bank’s monetary policy normalization process.
“I would like to highlight that, throughout this year, our actions within the scope of monetary policy have focused on continuing the cycle of normalizing the policy interest rate,” said Rogério Zandamela during the opening of the 50th BdM Advisory Council, held in Pemba, Cabo Delgado Province.
The benchmark interest rate had remained at 17.25% since September 2022 after a central bank intervention. However, as of January 31, 2024, the BdM began a series of successive reductions, lowering it to 16.5%. Since then, the MIMO rate (the monetary policy rate) “has been reduced cumulatively by 750 basis points, standing at 9.75% in September 2025 — the lowest level since its introduction in 2017.”
“In line with this development, the prime rate — the reference lending rate for commercial banks in their dealings with clients — fell by 470 basis points, standing at 16.50% in September this year. This reflects the financial system’s positive response to monetary policy decisions and the gradual improvement in financing conditions for the economy,” emphasized the governor.
According to Zandamela, this environment led to a recovery in credit to the economy, which “registered an annual growth of about 1% in September 2025, after a 0% growth recorded during the same period the previous year.” He added that “the macroeconomic framework of 2025 has been marked by continued price stability amid a gradual recovery of economic activity.”
However, he acknowledged that “external transactions recorded a 3.1% worsening in the current account deficit in the first half of the year, year-on-year,” which keeps the country “dependent on external savings to finance its economy.”
Despite this, Zandamela assured that “as of the end of October, our gross international reserves remain at comfortable levels, an important sign of resilience to external shocks and a true shield protecting national sovereignty.”
He also highlighted that “the national banking sector remains solid and well-capitalized, with solvency and liquidity ratios above regulatory limits, confirming the robustness and stability of Mozambique’s financial system.”
Zandamela further noted that 2025 has seen significant progress in financial inclusion, driven by the modernization of the national payments system. Among these advances, he mentioned interoperability between digital payment platforms and commercial banks, as well as strengthened financial education and consumer protection.
According to the governor, this evolution “has allowed the number of electronic money accounts to almost double, from 11.9 million in December 2022 to 23 million in June 2025, demonstrating the rapid expansion of digital financial services and their growing integration into the daily lives of Mozambican households.”
Source: Lusa
