Mozambique’s exports fell 9% in 2019

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Mozambique’s exports fell 9% in 2019

12:44 CAT | 03 Mar 2020

File photo; O País

Mozambican exports fell by nine percent to US44.7 billion last year, while imports over the same period increased. According to the Bank of Mozambique, the resulting deterioration in the balance of trade in 2019 amounted to about US$2 billion dollars.

According to Mozambique’s central bank, Mozambique’s sales abroad, heavily weighted for large projects, fell to around US$4.7 billion last year, 9% less than in 2018. Imports increased 10%, reaching US$6.7 billion dollars.

Imports of machinery, construction materials and automobiles increased while exports fell as a result of falling international commodity prices and the negative effect of Cyclones Idai and Kenneth on the production and the sale of export products such as coal, rubies and heavy sands.

Production levels and consequent exports of aluminium were constrained by restrictions in the supply of electricity.

Despite the deterioration in the trade balance, the Bank of Mozambique indicates that the country’s international currency reserves increased to approximately US$3.9 billion during the period in question, enough to cover more than six months of imports of goods and services, excluding mega-projects.

By Edson Arante

Source: O País