Credit to the economy in Mozambique grew by 0.55% in November 2024, reaching a total of 290.9 billion meticals (4.5 billion dollars), according to data from the BoM consulted this Tuesday (7) by Diário Económico.
According to the BoM’s statistical report, the volume of credit granted by banks to the productive sector and consumers rose from 289.3 billion meticals in October to 290.9 billion meticals in November 2024, maintaining a growth trajectory despite the macroeconomic challenges.
An analysis of the distribution of credit by sector of activity shows that private individuals continue to lead the volume of financing, totalling 98.2 billion meticals in November, an increase on the 96.7 billion recorded in October. The trade sector absorbed 24.6 billion meticals, while the manufacturing industry received 24.2 billion.
In the business sector, private companies were the main beneficiaries of bank credit, receiving 112.8 billion meticals in the period under review, followed by public companies, which absorbed 24 billion meticals. Financial companies saw a slight increase in credit granted, totalling 4 billion meticals.
With regard to financing conditions, the BoM report reveals that average interest rates on long-term loans for companies stood at 18.17 per cent in November, while consumer loans had an average rate of 24.43 per cent. The interest rate for housing loans was 18.57%, reflecting a slight reduction in the cost of property finance.
The growth in credit to the economy follows the trend of expansion of the monetary base, which increased by 11.5 per cent over the year, reaching 348.5 billion meticals in November. This increase reflects the liquidity of the financial system and the greater availability of resources for granting loans.
The performance of bank credit in 2024 shows the resilience of the Mozambican financial system, despite the economic challenges and political uncertainty experienced in the country.
‘The Bank of Mozambique continues to monitor developments in the sector, with a view to ensuring financial stability and the sustainability of economic growth in the country,’ the document states.
Text: Felisberto Ruco
