Mozambique: Business confidence continues to decline – AIM report

Mozambique’s business leaders continue to regard the country’s economy with negative expectations, which means that business confidence has been showing a prolonged downward trend for 21 months. According to the most recent survey on Confidence Indicators and Economic Climate, published by the National Statistics Institute (INE), business leaders are predicting lower sales volumes and reduced job creation. The report, which is based on interviews conducted by the INE with managers of companies, says “Pessimism has remained consistent, reflecting structural difficulties faced by the private sector”.

The document claims that the main factors that harm the economy include the scarcity of raw materials, and difficulties in accessing foreign credit. These constraints, says the report, have limited the expansion capacity of companies and conditioned investment. “In the first three months of this year, the decline in business confidence was particularly influenced by the drop in expectations in the industrial sector, considered one of the pillars of economic activity.

The trade sector also registered a slowdown in prospects, although services showed a slight improvement in the same period”, reads the document. Despite the prolonged negative trend, the report highlights some specific signs of stabilization. The employment expectations indicator, for example, “has stabilized in the last three quarters, after registering significant falls at the beginning of 2025, suggesting a possible slowdown in pessimism in the labor market.” According to the document, companies are continuing to adjust their expectations in the face of internal and external uncertainties affecting the performance of the economy. The Confederation of Mozambican Business Associations (CTA) has pointed out the shortage of foreign currency (particularly of US dollars) as one of the main constraints on the efficient operation of the economy, particularly in productive sectors such as manufacturing, commercial agriculture, tourism, mining, and logistics.