“This result was due to the deterioration of the Current Account (CA) deficit by $291 million [€255.2 million], combined with the slowdown in the capital account surplus by $175 million [€153.5 million],” states a report from the Bank of Mozambique on the balance of payments.
The report adds that the behavior of the CA deficit “stems from the increase in the negative balance of the primary income account by 37%,” reflecting the “worsening of the investment income component” by 35.5%, due to “the increase in net capital export by direct investment companies” by 48.6%, and the repayment of public and private external debt interest by 15% and 3%, respectively.
The evolution of the CA was also influenced by the increase in the service account deficit by 11%, “explained by the rise in net costs of service imports for Large Projects,” the central bank report further details.
Nevertheless, Mozambique closed 2024 with gross international reserves of $3,804.4 million (€3,336 million), an amount sufficient to cover four months of all anticipated import needs for goods and services.
Additionally, the “net debtor” position of Mozambique’s economy relative to the rest of the world increased by 2.61% during 2024, registering a stock of $71,296.4 million (€62,538 million), resulting from the absolute increase in liabilities by $5,733 million (€5,029 million) compared to assets, which amount to $3,928 million (€3,445 million).
