Chief economist of Standard Bank Mozambique, Fáusio Mussá, on Wednesday (20) in Maputo, called for the expansion of financing mechanisms aimed at small and medium-sized enterprises (SMEs), warning that the current global economic environment continues to worsen the challenges faced by Mozambique’s business sector.
The intervention took place during the panel “From Information to Action – Opportunities for African Trade Growth,” held as part of the presentation of the Standard Bank Africa Trade Barometer.
According to the economist, the global economy is currently facing successive external shocks that directly affect fragile, import-dependent countries such as Mozambique. “We are living in a very complex situation in the world, which is a global supply shock,” he said.
Mussá explained that the economic effects of the pandemic, the war in Ukraine, and tensions in the Mediterranean continue to pressure international prices and the availability of strategic goods, especially fuel. “We are already facing fuel shortages, and this situation is very difficult to manage because we also depend on the rest of the world to access this product,” he stated.
In his analysis, the economist considers it inevitable that the country will continue adjusting domestic fuel prices to ensure regular supply and avoid market disruptions. “The government wisely decided that a general fuel subsidy is impractical,” he said. He also noted that rising energy costs could once again put pressure on inflation and limit economic recovery, requiring the central bank to remain cautious in monetary policy. “It is unlikely that there will be any decision to raise interest rates this year. The central bank will probably first assess the impacts,” he added.
The economist also warned about risks linked to foreign currency shortages, at a time when rising fuel import bills are consuming a significant share of available foreign exchange. “We currently have a fuel bill almost three times higher than what we were paying monthly before,” he said.
He noted that prioritizing foreign currency for fuel imports could reduce availability for other productive sectors. “If foreign currency is prioritized for fuel, then other sectors will have less,” he warned.
Despite positive prospects linked to major natural gas investments, Mussá said economic recovery is likely to remain uneven between extractive industries and the rest of the economy. “I would not be surprised if we had a slow recovery of the economic system, where the extractive industry leads the acceleration, but the rest of the economy remains very constrained,” he stated.
He emphasized that SMEs remain among the most vulnerable segments of the economy, particularly due to persistent difficulties in accessing bank credit. “SMEs do not have the resources to deal with this volatility,” he said.
According to Mussá, even in a context of lower interest rates, financing remains inaccessible for many Mozambican SMEs. “Access to bank financing remains difficult for certain segments of society, especially small and medium-sized enterprises,” he added.
Given this scenario, the economist advocated strengthening and expanding public funds and alternative financing mechanisms aimed at SMEs. “It might be a good time to reflect on how far these funds being created can expand their scope to reach small and medium-sized enterprises,” he argued.
Among the instruments mentioned, he highlighted the Local Development Fund and funds supporting women entrepreneurs, arguing that these mechanisms can serve as “a window of opportunity” to support the informal economy and small businesses. “It is time to look at these funds as a resource that can help the SME economy,” he added.
The session was part of the panel “From Information to Action – Opportunities for African Trade Growth,” moderated by Clóves Muluana and featuring Kudzai Guvi, Leonel Moniquela, and Donald Larson.
The event brought together banking representatives, business leaders, investors, and trade experts to discuss the impact of the current global economic environment on African trade, as well as solutions to strengthen the competitiveness of Mozambican companies and accelerate intra-African trade.
Text: Felisberto Ruco
