Moza Banco

Mozambique borders Tanzania, Malawi, Zambia, Zimbabwe, South Africa, and Eswatini. It has a population of an estimated 33 million, with approximately two-thirds of its population living and working in rural areas. The country enjoys ample resources in terms of arable land for agricultural production, a plentiful supply of fresh water, and a relatively stable energy supply within the urban centres. Further, it is rich in mineral resources, including the recently discovered natural offshore gas reserves. The country has strong ties to the region’s economic community (SADC), positioning it strategically, as it borders several landlocked countries that depend on Mozambique through its three deep seaports to access global markets.

According to the 2023 World Bank Mozambique Economic Update report, the medium-term economic outlook is positive, with growth expected to accelerate to 6% over 2023-2025, driven by continued recovery in services, increased LNG production, and high commodity prices.

The Mozambique banking sector consists of 27 credit institutions, including 15 commercial banks, 11 microfinance banks, and one cooperative bank. The top three banks — BCI, BIM, and Standard Bank Mozambique — dominate, holding 63.67% of total assets, 68.45% of deposits, and 55.53% of credit. As of 2024, the sector continues to face challenges with asset quality, reflected in a non-performing loan (NPL) ratio around 10%. While profitability remains volatile for smaller banks, the top three banks report relatively strong Return on Equity (ROE) rates, with BCI leading at 24%, BIM at 19%, and Standard Bank at 16%.

In 2023, the Central Bank of Mozambique raised reserve requirements from 10.5% to 28% for local deposits to enhance sector stability. Despite these challenges, the banking sector remains resilient, with solid capitalisation and liquidity levels, as reported in the 2022 Financial Stability Bulletin.