The week was marked by significant developments in Mozambique’s monetary, economic, and mining sectors, reflecting both state action and signs of business recovery. The Bank of Mozambique (BoM) announced a historic investment in modernising the metical, the Government exposed irregularities in trade flows, and Cabo Delgado province witnessed the resumption of graphite exports after months of suspension due to sociopolitical instability.
The BoM revealed it had invested approximately 3.5 billion meticais ($54.2 million) in the production of a new series of banknotes and coins, introduced on June 16, 2024. This amount represents an increase compared to the 3.2 billion meticais ($49.6 million) spent the previous year. During the same period, the total value of currency in circulation in the country rose to 85.3 billion meticais ($1.3 billion), up from 80.4 billion meticais ($1.2 billion) recorded in 2023.
According to BoM Governor Rogério Zandamela, the periodic renewal of notes and coins — on average every five years — is intended to ensure greater security, modern design, and reinforcement of national identity elements. The new series maintains the previous six denominations, with the 1,000, 500, and 200 metical notes printed on paper, and the 100, 50, and 20 metical notes on polymer substrate. Regarding coins, the 25-centavo coin has been discontinued, while the 1, 2, 5, and 10 metical coins, as well as the 1, 10, and 50 centavo coins, remain in circulation. Both the new and the July 2006 series of banknotes and coins are considered full legal tender throughout the country.
On the trade front, the Permanent Secretary of the Ministry of Economy, Jorge Jairoce, warned of multiple fraudulent schemes in import and export operations. During the presentation of the National Plan for the Formalisation of the Informal Sector, he stated that the Government is closely monitoring illegal practices that affect the quality of goods entering the country and assured that those involved will be held accountable. Jairoce also stressed the importance of boosting domestic production as a means to increase exports and improve foreign currency availability. His remarks come amid a foreign exchange shortage that has disrupted key sectors such as healthcare, fuel, aviation, and food supplies. President Daniel Chapo even accused commercial banks of engaging in speculative practices by artificially creating foreign currency shortages for profit.
Meanwhile, in Cabo Delgado, Australian mining company Syrah Resources resumed graphite shipments from its Balama facility after a six-month suspension caused by political and social instability following the 2024 general elections. The suspension, which triggered a “force majeure” clause, resulted in significant losses and a 28% drop in the company’s share value, in addition to missed financial obligations tied to U.S. Government-backed funding.
With support from the U.S. International Development Finance Corporation (DFC), shipments resumed at the Port of Pemba, with more expected through September. The restart comes at a time when global demand for graphite — a key raw material for electric vehicle battery production — is surging. The ongoing political stabilisation, driven by institutional reforms and the recent approval of the national peace law, could prove crucial in attracting further foreign investment and consolidating Mozambique’s position as a strategic supplier of critical minerals.
Text: Felisberto Ruco
