Credit to the economy increased again in March for the second consecutive month, reaching a new all-time high of US$3.9 billion, according to data from the latest statistical report released by the Banco de Moçambique.
According to Lusa, the volume recorded in March represented an increase compared to the US$3.8 billion registered in February and also surpassed the previous historical peak of US$3.8 billion reached in May last year. On a year-on-year basis, the stock of credit also rose compared to the US$3.7 billion recorded in March 2025.
The growth confirmed the recovery of bank financing to the economy after a period of three consecutive months of contraction, which was interrupted in February. Sector analysis showed that individuals continued to account for the largest share of credit, although this segment recorded a decline during the period, totaling US$1.2 billion.
Among business sectors, transport and communications remained the second-largest destination for bank financing, with US$345 million, followed by trade with US$300 million and manufacturing industry with US$291 million.
The credit expansion occurred amid stabilizing monetary conditions. In May, the financial system’s benchmark lending rate, the prime rate, remained unchanged at 15.5% after three consecutive reductions since the beginning of the year, according to the Mozambican Banking Association.
Since January 2024, the rate has followed a downward trend after remaining at a peak of 24.1% for six consecutive months. In 2026 alone, successive cuts of 10 basis points were implemented in January, March, and April.
Changes in the prime rate follow the evolution of the Bank of Mozambique’s monetary policy rate, known as the MIMO rate, which directly influences borrowing costs in the financial system. However, in March, the central bank decided to pause its monetary easing cycle and maintained the MIMO rate at 9.25% after 12 consecutive cuts that began in January 2024.
Announcing the decision, Bank of Mozambique Governor Rogério Zandamela justified maintaining the rate due to increasing inflationary risks.
“This decision results from the materialization and substantial worsening of some risks and uncertainties associated with inflation projections, particularly the conflict in the Middle East and its impacts on logistics chains, as well as the supply and prices of energy and food products,” he stated.
According to the governor, the pause in the rate-cutting cycle also reflected concerns over domestic factors, including the impact of floods recorded in the country during the current rainy season.
