The economic week was marked by relevant developments in key areas for Mozambique’s growth, in particular the official launch of the future national petrochemical city, the inauguration of a new logistics terminal in Maputo province and a significant increase in interbank foreign exchange transactions, which reached around 400 million dollars in the last quarter of 2024. In addition, economists are taking a strategic view of the new trade war between the United States, China and the European Union – a phenomenon which, although fraught with risks, could open up occasional opportunities for the Mozambican economy.
National petrochemical city kicks off with promise of economic transformation
This Thursday, April 17, in Inhambane province, the government launched the project to build the future national petrochemical city, a private venture valued at 2 billion dollars (126 billion meticals). The ceremony was presided over by Mozambican President Daniel Chapo, who highlighted the project’s transformative potential for the industrialization of the country, the creation of around 10,000 jobs and the strengthening of national economic independence.
With an estimated impact of more than 1.1 billion dollars on the Gross Domestic Product (GDP), the petrochemical city will include processing units for natural gas and other resources, including ammonia, urea, chlorine and fertilizers, as well as logistical and social infrastructures. The initiative is part of a strategy to make the most of natural resources locally, focusing on industrialization and generating opportunities for Mozambican youth.
Maputo logistics terminal eases pressure on borders
Another highlight of the week was the announcement of an investment of 50 million dollars (3.1 billion meticals) by the company Corredor Logístico de Maputo (CLM) in the construction and operation of a new logistics terminal, which is already functional. The infrastructure aims to relieve congestion at the Namaacha, Goba and Ressano Garcia border crossings, promoting greater fluidity in the transit of goods and reducing operating costs.
With capacity to store more than 50,000 tons of cargo and equipped with integrated services from the Tax Authority, Migration, brokers and freight forwarders, the terminal is a decisive step towards consolidating Maputo as an important regional logistics hub.
CLM also indicated that work will soon begin on the construction of an additional 22,000 square meters of warehouses. The expansion of the corridor has the interest of the Development Bank of Southern Africa (DBSA), which could invest another 30 million dollars in modernizing the railway line to South Africa.
Interbank foreign exchange market grows 270%
The Bank of Mozambique (BoM) released its Quarterly Market Bulletin this week, revealing a significant increase in interbank foreign exchange transactions. Between October and December 2024, the total volume of foreign exchange sales between commercial banks reached 24.6 billion meticals (400 million dollars), representing growth of 270% over the previous quarter.
The number of transactions almost doubled, from 9 to 19, with more frequent exchange sessions and higher volumes per session. This dynamic demonstrates the growing autonomy of the banking system in responding to foreign exchange needs, without direct intervention from the central bank during this period. The MIMO rate, the main reference for monetary policy, was reduced to 12.75% at the end of the year, which may have contributed to improved liquidity and access to credit.
Global trade war: risks and opportunities for Mozambique
Internationally, the imposition of high tariffs by the United States on Chinese and European products has reignited trade tensions that could have widespread effects on peripheral economies such as Mozambique.
According to economists contacted by Diário Económico, the global trade conflict could create opportunities in the short term – with the fall in fuel prices benefiting importing countries like Mozambique – but it also imposes medium and long-term risks, such as the devaluation of exports and increased inflationary pressure.
Economist Egas Daniel warned that the country could benefit from lower oil prices, but suffer from a drop in global demand for the raw materials that form the basis of national exports. Clésio Foia warned of the collateral effects on local value chains, warning that cheaper products from China or Europe could unbalance the domestic market and put pressure on Mozambican producers.
In a context of global uncertainty, the experts advocate a strategic stance on the part of the Mozambican government, with measures to strengthen economic resilience, stimulate industrialization and invest in local value chains, capable of positioning Mozambique as a relevant player in the new economic geopolitics.
Text: Felisberto Ruco
