FNB Mozambique, in partnership with RMB, the corporate arm of the FirstRand Group, of which FNB is also a member, organised a Business Economic Breakfast in Maputo in April.
The economic event was attended by FNB’s clients, partners and employees, and various topics were discussed, including the local and global economic outlook, fluctuations in the distribution chain, recent developments and challenges in Mozambican banking, the current economic outlook in Mozambique, among other current economic issues.
During his presentation, FNB’s head of economics and market research, Alfredo Mondlane, spoke about the country’s economic projections for 2024. “In 2023, we saw economic growth of around 5 per cent, compared to the previous year’s economic growth of around 4 per cent. As a result, our growth prospects point to an increase of 4.9 per cent for 2024.”
Mondlane expects the economy to accelerate to a growth rate of 5.6 per cent in the medium term. “We believe that in the future, the LNG industry, the gas industry and the extractive industry will be at the forefront of economic growth. They will also be supported by service industries, specifically financial services. We also expect the transport and communications industry to support this growth.”
We need to decongest ports, invest in infrastructure to unblock supply chain ecosystems
Samantha Singh, an economist at Rand Merchant Bank (RMB), focused on the global economic outlook and its impact on developing countries, with special emphasis on Africa. Samantha emphasised: “From a global perspective, we are seeing moderate economic growth, increased geopolitical tensions, changes in inflation dynamics and central bank action. Commodity movements are largely driven by global growth, while conflicts and geopolitical tensions pose risks to commodity prices. Oil demand is at an all-time high, while there are also some supply constraints.”
Another central theme of the meeting was addressed by Kevin Holmes, head of RMB’s commercial solutions portfolio. “Adverse supply chain conditions relating to logistics and inadequate infrastructure have been exacerbated by the pandemic, but these weaknesses are not a recent phenomenon, they are a long-standing reality. Transforming this scenario involves, among other things, decongesting ports, investing in infrastructure and financing solutions to unblock supply chain ecosystems at various levels, including evaluating affordable means of transport for shipping goods.
For her part, Yolanda Braga, Director of Operations at FNB Mozambique, commented on the modernisation of the banking financial system. According to Braga, “FNB was one of the first institutions to migrate to the Euronet system, which included the introduction of contactless cards. It should be noted that any migration or system change of this magnitude is susceptible to some instability. However, the process is ongoing and the Bank will remain engaged with its partners in order to ensure minimal impact for its customers.”
Events of this nature allow the Bank to get closer to its clients, being present as a financial partner and providing relevant economic information that adds value to their businesses.
