The economic week was marked by increasing pressure on the Mozambican economy, amid worsening external accounts, declining international reserves, and the continuing financial and reputational impacts associated with the hidden debts case. Rising inflation, pressure on foreign currency availability, and growing external financing needs have reinforced the macroeconomic stability challenges facing the country.
Data released by the Bank of Mozambique (BdM) show that the trade balance deficit widened to 797.6 million dollars in 2025, driven by a 32.3% drop in exports and a 35.6% increase in imports. The decline in external sales was mainly influenced by the performance of major extractive projects, while the rise in imports reflected stronger demand for fuel, machinery, food products, and industrial equipment.
The worsening trade deficit comes amid a broader deterioration of the current account, which increased by 27.6% to 3.1 billion dollars, equivalent to 13.2% of Gross Domestic Product (GDP). India remained the main destination for Mozambican exports, while South Africa continued to be the leading source of the country’s imports.
At the same time, Net International Reserves fell by 18% in March, reaching 3.4 billion dollars, after the Government used part of its external resources to make an early repayment of 698.5 million dollars in debt to the International Monetary Fund (IMF). Although the Executive considers the decision a sign of macroeconomic responsibility, the private sector continues to warn about persistent difficulties in accessing foreign currency within the banking system.
The Confederation of Economic Associations of Mozambique (CTA) argues that the shortage of foreign currency continues to affect productive and commercial activity, particularly companies dependent on imported raw materials and equipment. The business sector is calling for greater priority in the allocation of foreign currency to producing and exporting companies, as well as incentives for import substitution.
On the inflation front, data from the National Statistics Institute show that monthly inflation accelerated to 0.63% in April, almost triple the rate recorded in March. The rise in prices was mainly driven by food products, particularly cabbage, onions, tomatoes, lettuce, and fresh fish, during a period still marked by fuel supply constraints and higher transportation and distribution costs.
Meanwhile, the London Court rejected the appeal filed by Privinvest in the hidden debts case, making the company’s conviction to pay approximately 1.9 billion dollars to the Mozambican state final. The case remains linked to sovereign guarantees granted to the companies ProIndicus, Ematum, and MAM between 2013 and 2014, in a financial scandal estimated at around 2.7 billion dollars that triggered one of the largest economic and reputational crises in the country’s recent history.
The court decision represents another step forward for Mozambique in its attempt to secure financial recovery and ensure international accountability for those involved in the case.
Text: Felisberto Ruco
