The shortage of foreign currency in Mozambique has become an unavoidable problem. Companies are struggling to import goods, tourism is losing momentum, and market confidence is showing signs of erosion. According to economist Eduardo Sengo from the Confederation of Economic Associations (CTA), the diagnosis is clear: “It is a serious problem that affects economic performance.”
Despite the country holding significant international reserves, access to foreign currency remains limited, revealing structural weaknesses in the economy and in the management of external revenues.
Figures help illustrate part of the problem. In 2023, estimated revenue from cashew nut exports was around US$200.9 million, but only US$57.3 million was reported to the Bank of Mozambique, explains the economist, pointing to an underreporting of approximately US$143.6 million.
At the level of the trade balance, there have been apparent improvements. The coverage of imports by exports rose to 87% in 2024. However, the figure hides vulnerabilities. “The economy outside major projects remains fragile and highly dependent on imports,” the specialist notes, adding that without the extractive sector, coverage drops to just 22%.
Dependence on fuel, which accounts for more than half of imports, further worsens the situation, exposing the country to external shocks and global price volatility. This imbalance helps explain the chronic current account deficit, with imports consistently exceeding exports over the past decade.
In the foreign exchange market, the situation worsened between 2024 and 2025. Foreign currency availability declined, and companies began facing real difficulties paying external suppliers. At the same time, commercial banks reversed their role: instead of supplying foreign currency, they began absorbing it, withdrawing around US$4.8 million per day from the market.
Despite some stability in the official exchange rate, signs of pressure are visible. “In the informal market, prices rise daily,” and “some products have been removed from shelves due to lack of foreign currency,” Sengo notes.
Foreign currency shortage affects tourism
The shortage of foreign currency is increasingly affecting tourism in Mozambique and could undermine the country’s competitiveness as a destination. According to sector operators, the problem highlighted by economists is that companies are struggling to make payments abroad. As a result, airlines are reducing operations and hotels are under pressure to maintain quality standards.
Cotur travel agency CEO Noor Momade describes growing pressure: “The impact is directly felt in the acquisition of international services, in our relationships with airlines, global platforms and other foreign suppliers.”
Airlines and hotels already feeling the impact
Data from the International Air Transport Association (IATA) shows that in April 2025, Mozambique had accumulated US$205 million in blocked airline revenues that could not be repatriated—up from US$127 million six months earlier. Even after some reduction, the figure still stood at around US$91 million in October.
On the ground, consequences are already visible. Momade notes that some airlines are adjusting operations. Airlink is considering suspending local ticket sales, while Emirates has prevented Mozambican agencies from issuing tickets. Others, such as Qatar Airways and Ethiopian Airlines, continue operating but with restrictions.
“There are increasingly clear signs of pressure on the sustainability of airline operations,” says Cotur’s director.
In the hotel sector, problems are also mounting. Businessman Dado Gulamhussen, former general operations director of the VIP group in Mozambique, says these difficulties are already part of daily operations.
“The shortage of foreign currency has a direct and profound impact on hotel operations, particularly on their ability to honour commitments to international suppliers and ensure continuity of essential services,” he says.
According to him, in a sector dependent on imports, the impact is immediate. “These constraints force operators to adopt a more rigorous and cautious approach to management.”
Service quality is also being affected. “Clear signs are emerging of pressure on quality standards due to difficulties in accessing imported goods and services,” he adds.
Another sensitive issue is the use of international platforms for tourism management. “Any restrictions on access to foreign currency can compromise the visibility and competitiveness of the destination in the global market. When there are payment problems, uncertainty and operational planning difficulties increase,” Gulamhussen explains.
Risk to competitiveness and investor confidence
Warnings are also coming from international institutions. The International Monetary Fund (IMF) has already indicated that the shortage of foreign currency is harming economic activity, while the World Bank has noted negative impacts on trade and investment.
For operators, the risk is clear. “If a tourist encounters a destination with limited air connections, they may simply choose another,” warns Momade. Regarding investment, the effect is similar: “Difficulties in repatriating revenues and accessing foreign currency undermine the confidence of potential investors.”
The Cotur president nevertheless sees a possible positive outcome: “It could be an opportunity to strengthen local production and rethink the economic model.”
What urgent measures are needed?
For Momade, the priority is to “urgently improve the predictability of foreign payments,” calling for “coordination between the government, the Bank of Mozambique, the banking sector and market operators to reduce bottlenecks and restore confidence in the tourism market.”
In a sector identified by the World Bank as strategic for employment and growth, the currency crisis becomes a test of the country’s ability to sustain its own development.
On the solution side, the Bank of Mozambique has increased the minimum conversion rate of export revenues to 50% in an attempt to inject more liquidity. The measure has had some effect but does not solve the core problem.
For Eduardo Sengo, the issue lies in the repatriation of export revenues, especially from large projects. “With an export coverage rate of around 87%, Mozambique should not be experiencing these difficulties,” he argues, stating directly: “The Bank of Mozambique must require major projects to repatriate export revenues.”
Currently, 66% of exports are concentrated in the extractive sector, reinforcing the need for institutional oversight and coordination. “The ministries must analyse, case by case, how export revenues are being handled. In cases of non-compliance, they must be compelled to repatriate funds,” he says.
Until this happens, the foreign currency shortage will continue to constrain strategic sectors such as tourism and limit economic growth.
Text: Germano Ndlovo | Photography: D.R
