Pension funds held 36.88% of the total value of securities traded on the Securities Market (MVM) at the end of 2025, an increase of 6.41 percentage points from the 30.47% recorded in December 2024, according to the Bank of Mozambique’s (BdM) 2025 Financial Stability Report, reviewed this Tuesday (30).
According to the central bank, “the share of the value of securities held by pension funds in the total value of securities on the MVM was 36.88%, representing an increase of 6.41 percentage points compared to December 2024.”
The report notes that this trend contrasts with the decline in the share of pension fund deposits in the banking sector. In December 2025, deposits stood at 1.4 billion meticais, down 46.27% from the 2.6 billion meticais recorded in the same period of 2024.
According to the BdM, “this reduction is linked to an increase in investments by pension funds in long-term instruments traded on the MVM, at the expense of short-term investments in the banking sector.”
The central bank adds that “this trend—which runs counter to the trend observed in the share of pension fund deposits relative to total banking sector deposits—indicates that pension fund managers are increasingly investing their assets in the MVM, rather than in bank deposits.”
The report also notes that, “similar to the appetite for sovereign risk demonstrated by the banking sector, pension funds’ investments in the MVM are also concentrated in Treasury bonds (OT), rather than other securities available in the capital market, thereby also exposing them to sovereign risk.”
According to the Bank of Mozambique’s assessment, the pension fund sector “proved, during the period under review, to be a significant source of financing for the MVM sector and less significant for the banking sector, which has a broader base of financing sources.”
