Mozambique's economic week was defined by three developments: the Bank of Mozambique's (BdM) announcement of a new platform to monitor the foreign exchange market in real time, the approval of amendments to tax regulations, and the first recovery in business confidence after a prolonged period of deterioration. Together, these shifts reflect changes in foreign exchange market oversight, fiscal administration, and corporate expectations.
The BdM plans to launch a digital platform by the end of this year that will allow it to track, in real time, the supply and demand for foreign currency in the market. The tool is expected to monitor the foreign exchange made available by exporters, the prices at which it is offered, demand from importers, and the rates applied by commercial banks.
Central bank governor Felisberto Navalha explained that the platform will enable the BdM to track the volume of foreign currency that exporters place into the banking system and the corresponding prices. "We want, by the end of December, to make available to the banking system and the market a platform that allows the BdM, in real time, to monitor the volume of foreign exchange that exporters place in the system for sale to banks, and consequently at what price they are placing it," he said.
The tool is also expected to track foreign currency demand from importers and the rates charged by banks, strengthening the central bank's ability to monitor exchange rate formation. "We need to make some reforms in the functioning of the market, in order to ensure that this flow of foreign exchange and this volume of resources can be distributed or allocated in the market in the most transparent and efficient way possible," Navalha added.
Government Approves Amendments to Tax Regulations
Also this week, the Council of Ministers approved amendments to the regulations governing Mozambique's main taxes, continuing the fiscal reform introduced at the end of 2025. The measures cover Corporate Income Tax (IRPC), Value Added Tax (VAT), Personal Income Tax (IRPS), and the small taxpayers regime.
The decisions were taken during the government's 28th ordinary session, held in Maputo, and establish procedures, deadlines, and administrative mechanisms for implementing the legislative changes approved in December of last year. The process seeks to broaden the tax base and strengthen revenue collection, including in the digital economy.
The approval of the regulations represents a new stage in the implementation of the fiscal reform. The laws amending the VAT, IRPS, and IRPC codes entered into force on 1 January 2026, although several of their provisions had referred implementation procedures to subsequent regulation.
INE Records First Recovery in Business Confidence in Nearly Two Years
On the business front, the National Statistics Institute (INE) recorded, in the third quarter of this year, the first recovery in business confidence among Mozambican companies in nearly two years, breaking a sequence of seven consecutive quarters of decline. The Economic Climate Indicator (ICE) rose from 87.4 points in the second quarter to 87.8 points between July and September.
The increase interrupts the deterioration trend that began after the second quarter of 2024. According to the INE, the recovery was "influenced by improved employment prospects and demand," although the indicator remains below the historical average of the series, which stands at 98.8 points.
Performance varied across sectors. In services, the confidence indicator rose from 100.6 to 101.7 points, remaining above the historical average. In industry, it moved from 89.8 to 90 points, following two consecutive quarters of decline, while in commerce it rose from 71 to 72.3 points — still the lowest level among the sectors analysed.
The recovery in the economic climate was accompanied by an improvement in demand expectations. "The demand expectations indicator recorded progressive improvements for the fourth consecutive quarter," the INE report states, with the corresponding balance rising from 91.6 to 92.4 points, driven by a positive assessment from services companies and a recovery recorded in industry and commerce.
Source: Diário Económico
Original article: https://www.diarioeconomico.co.mz/?p=549571
