Mozambique’s economic week was marked by the Bank of Mozambique’s decision to keep its benchmark interest rate unchanged, new growth projections from the African Development Bank (AfDB), and the country’s strengthening strategic position in Africa’s liquefied natural gas (LNG) market. These developments come amid rising external uncertainty, inflationary pressures, and expectations of a gradual economic recovery.
The Bank of Mozambique (BdM) decided to maintain its monetary policy rate (MIMO) at 9.25% for the second consecutive meeting, at a time of increasing risks linked to inflation and international geopolitical tensions. The decision was announced this week by central bank governor Rogério Zandamela after the Monetary Policy Committee (CPMO) meeting.
According to the central bank, the decision reflects growing external uncertainty, particularly related to the Middle East conflict, which continues to push up global fuel and food prices while also disrupting global supply chains. The monetary authority also warned of rising inflation risks. In April 2026, annual inflation accelerated to 4.4%, up from 3.4% in March. The BdM admitted that, depending on the evolution of external shocks, inflation could return to double-digit levels in the short to medium term.
In addition to international factors, the central bank pointed to internal constraints that continue to limit economic performance, including delays in public debt payments and the impact of flooding recorded in the first quarter of the year.
AfDB Foresees Gradual Economic Recovery
Meanwhile, the African Development Bank projects a gradual recovery of Mozambique’s economy over the next two years. According to the African Economic Outlook report released this week in Brazzaville, Republic of the Congo, Mozambique’s GDP is expected to grow by 2.1% in 2026 and accelerate to 3.5% in 2027.
The institution expects recovery to be driven mainly by the extractive sector, increased investment, and a rebound in private consumption. The AfDB also forecasts a slowdown in inflation to 5.7% in 2026–2027, in line with the central bank’s objective of keeping inflation at single-digit levels.
Despite the positive outlook, the report warns of a widening fiscal deficit and current account imbalance, driven by increased imports linked to LNG and mining projects. Key risks identified by the AfDB include climate shocks, political instability, the armed conflict in Cabo Delgado, and global trade tensions. However, the institution believes that stronger economic governance and investment in climate resilience could help mitigate some of these challenges.
Schneider Electric Highlights Mozambique in Africa’s LNG Market
In the energy sector, Mozambique also gained international attention. Multinational Schneider Electric identified the country as one of Africa’s leading players in the LNG market, as the continent strengthens its role in global energy supply.
According to the company, the period between 2026 and 2028 is expected to mark a new phase of global LNG expansion, driven by rising energy demand in Europe and Asia and the need to diversify supply sources. Schneider Electric’s analysis places Mozambique alongside Nigeria and Angola among the African countries leading sector growth. The company highlights that Mozambique holds some of Africa’s largest natural gas reserves, mainly located in the Rovuma Basin in Cabo Delgado.
The multinational also argues that the future of the industry will increasingly depend on operators’ ability to integrate digital solutions, smart systems, and operational analytics platforms capable of improving efficiency, safety, and cost control. At the same time, the country’s digital financial sector has experienced unprecedented growth.
Text: Florença Nhabinde
