Mozambique’s economy remains constrained by a shortage of foreign currency, despite positive prospects linked to natural gas investments, warned chief economist Fáusio Mussá on Wednesday (20), during the presentation of the Standard Bank Africa Trade Barometer held in Maputo.
According to the economist, the country is currently going through a difficult economic period, marked by foreign exchange constraints, weak fiscal support, and uneven growth between the extractive industries and the rest of the domestic business sector. “Mozambique is going through a difficult period from an economic point of view,” he said.
However, Mussá acknowledged positive signs related to large-scale investments in natural gas, which continue to drive foreign investment in the country. “There are strong growth prospects, especially in the economy linked to the progress of natural gas projects,” he stated.
He explained that high levels of foreign direct investment recorded in recent years are largely driven by the extractive sector. “When we look at the robust levels of foreign investment, natural gas explains a significant part of that movement,” he noted.
Despite this, the economist believes the national economy remains vulnerable due to insufficient availability of foreign currency to meet market needs. “The country still does not generate enough foreign currency for the economy to function normally,” he warned. In his view, one of the main current constraints is limited access to foreign exchange to finance external trade and ensure essential imports. “If we consider one of the issues highlighted in the report — limited access to foreign currency for international trade — we understand that this remains a major challenge,” he said.
Mussá also warned that economic growth could remain concentrated in gas-related sectors, while the broader economy stays weak. “I would not be surprised if we saw a scenario where non-extractive economic growth remains weak,” he said.
He added that this situation is mainly due to weak fiscal support and persistent liquidity constraints in the economy. “These would be the two main constraints of the economy, even with natural gas projects,” he said.
The remarks were made 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.
The debate was moderated by Clóves Muluana and featured participation from Kudzai Guvi, Leonel Moniquela, and Donald Larson.
The event brought together banking representatives, business leaders, investors, and trade experts to discuss Africa’s structural economic challenges, constraints on intra-African trade, and growth opportunities linked to strategic investments on the continent.
Text: Felisberto Ruco
