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Mozambique: Over 90% of the population is unable to obtain credit to buy a new home
2:40 CAT | 03 Jul 2020
File photo: O País
More than 90% of Mozambique’s population is unable to access bank credit to buy a home in the country, the Bank of Mozambique’s annual Financial Stability Report reports.
The report, published on Wednesday, says the population in question has no income, and cannot borrow “to acquire new homes or properties”.
One of the main reasons for this, the report adds, is that the country does not yet have a significant and consolidated middle class, with purchasing power, mainly because of low disposable income in families.
This is aggravated by the sharp fall in production and gross domestic product (GDP) over the last four years.
Another reason cited by the financial system regulator is “the extremely high interest rates” which “greatly constrain the ability of families to service debt, and limits their purchasing power”.
Prices for property, including houses in Mozambique, are so high that they prohibit more than 90 percent of the population from buying.
By Clemêncio Fijamo
Source: O País
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