The economic week in Mozambique was marked by the release of the first financial results of the Sovereign Fund, the maintenance of the banking system’s reference interest rate, and signs of a slowdown in private sector economic activity, in a context still affected by climate shocks and macroeconomic uncertainties.
In terms of public financial management, the Bank of Mozambique (BdM) revealed that the Mozambique Sovereign Fund (FSM) recorded a net income of approximately USD 212,000 in 2025. According to unaudited financial statements, this amount resulted exclusively from interest on overnight bank deposits, reflecting a conservative approach in the initial phase of the fund’s operations.
The expenses related to commissions and banking costs were minimal, totaling just over USD 200, showing a marginal impact on the reported earnings. The report, signed by BdM Governor Rogério Zandamela, represents the FSM’s first accountability since its creation in 2023, with the aim of ensuring prudent and intergenerational management of revenues from the exploitation of natural resources, particularly natural gas.
Although preliminary and still subject to independent audit, the disclosed data provide a first insight into the strategy adopted, based on capital preservation and risk minimization during what is considered an institutional consolidation phase.
In the banking sector, the Mozambican Banking Association announced the decision to maintain the prime rate at 15.70% in February, despite a recent reduction of the central bank policy rate by the Bank of Mozambique. The maintenance of the prime rate comes at a time when the MIMO rate was cut for the 12th consecutive time, reaching 9.25% as part of the easing cycle that began in January 2024. The central bank justified its decision by citing inflation at moderate levels, which stood at 3.23% in December 2025. Nevertheless, BdM warned of risks related to floods in several provinces, geopolitical tensions, and the evolution of domestic public debt—factors that continue to influence the behavior of the financial system.
In the domain of economic activity, the Standard Bank Purchasing Managers’ Index (PMI) indicated stagnation in business conditions in the private sector in January 2026. The indicator fell to the neutral level of 50 points, down from 50.9 in December, signaling a slowdown after improvements observed in the last quarter of 2025.
The slowdown was primarily attributed to weaker growth in order books and reduced business confidence, in a context marked by intense flooding that affected supply chains, consumption, and production in several regions of the country. Despite this, production levels continued to grow for the seventh consecutive month, albeit at the slowest pace of this period.
Analysts note that while indicators show signs of a pause in the economic recovery, factors such as the gradual resumption of large energy projects and normalization of weather conditions could contribute to a more sustained recovery in the medium term. Meanwhile, the week reflects a cautious approach, both in public resource management and financial system decisions, in an economic environment still marked by structural vulnerabilities.
On the corporate and regional banking front, Banco BPI announced its intention to sell its stake in BCI, following losses recorded in 2025 attributed to the worsening of Mozambican public debt. This position was conveyed by BPI CEO João Pedro Oliveira e Costa during the annual results presentation in Lisbon, reiterating that stakes in Angola and Mozambique are considered “non-strategic,” opening the door to their sale.
In 2025, BPI reported consolidated profits of EUR 512 million, a 13% decline compared to the previous year. While its stake in Banco de Fomento Angola (BFA) contributed positively to results, BCI posted a negative contribution of EUR 20 million, compared to EUR 38 million positive in the previous year, with exposure to Mozambican sovereign debt cited as the main cause of this deterioration. BPI holds 35.67% of BCI’s capital, with the remainder mostly controlled by Caixa Geral de Depósitos.
At the end of the conference, João Pedro Oliveira e Costa also expressed concern over the death of a BCI executive, highlighting the human impact of the incident within the institution.
Text: Felisberto Ruco
