The Bank of Mozambique (BoM) revealed that the country’s exports of goods rose by 3.7 per cent in the third quarter of 2024, reaching 6.1 billion dollars (432.6 billion meticals). This growth was essentially driven by Major Projects (GP), especially the extractive industry, particularly natural gas and electricity, which continue to be the main drivers of foreign trade.
According to the quarterly Balance of Payments report, Mozambique’s total exports increased by 218 million dollars (15.2 billion meticals) compared to the same period in 2023. The main contribution to this growth came from the Major Projects, which are fundamental to the Mozambican economy.
‘The products of the Major Projects, with special emphasis on the extractive industry, showed growth of 2.6 per cent, reaching 3.3 billion dollars (237.3 billion meticals), sustained mainly by exports of natural gas,’ detailed the BoM.
The extractive industry, particularly natural gas, continues to be the biggest driver of Mozambique’s exports. Natural gas production, one of the country’s main export products, played a central role in this growth, benefiting from growing demand on international markets. ‘Natural gas remains the main driver of the increase in exports, reflecting growing global demand and the strengthening of the sector’s infrastructure,’ the report added.
In addition to natural gas, electricity exports also contributed significantly, with an increase of 7.2 percent, totalling 535 million dollars (37.4 billion meticals). This increase reflects the expansion of production capacity and Mozambique’s growing participation in the regional energy market, especially with exports to neighbouring countries.
While GPs continue to be the central pillar of exports, the agricultural sector also saw significant growth. Exports of agricultural products increased by 77 million dollars (5.39 billion meticals), totalling 1.5 billion dollars (107.8 billion meticals). The highlight was the increase in sales of tobacco, vegetables and fruit, sectors that have proved resilient and have the potential to diversify the country’s sources of income.
“The extractive industry, particularly natural gas, continues to be the biggest driver of Mozambique’s exports.Natural gas production, one of the country’s main export products, has played a central role in this growth, benefiting from growing demand in international markets”
However, the report also emphasises that some commodities showed falls in exports. Mineral coal, for example, fell by 4.8 per cent, generating 1.5 billion dollars (107.8 billion meticals). ‘The reduction in mineral coal exports reflects a fall in international demand and challenges in local production,’ said the BoM. Aluminium also fell by 7.2 percent, totalling 791.4 million dollars (55.4 billion meticals), impacted by the slowdown in the global industry.
As for export destinations, India remained Mozambique’s largest trading partner, absorbing 1.1 billion dollars (81.9 billion meticals), representing 19.0 per cent of total exports. South Africa was the second largest destination, with 941 million dollars (65.9 billion meticals), or 15.0 per cent of total exports. Other notable destinations include China and Singapore, which continue to be key markets for Mozambican products.
‘The continued growth of Major Projects, especially in the natural gas and electricity sectors, reflects Mozambique’s solid position in the global market, while the agricultural sector has also shown significant potential for expansion. Export diversification is crucial for the country’s future,’ said the BoM in the report.
Text: Felisberto Ruco
