Mozambique: FNB expects national economic growth of around 5-6% in 2023

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Mozambique: FNB expects national economic growth of around 5-6% in 2023

8:05 CAT | 24 Apr 2023

Photo courtesy: FNB Mozambique

The national economy will record a growth in its Gross Domestic Product (GDP) of 5-6% in 2023. This is the outlook revealed by an FNB study recently in Maputo. FNB is a division of the First Rand Group.

GDP growth will be supported by acceleration in sectors such as agriculture (with a contribution of between 20-25%), logistics, and the continued recovery in hotels and tourism, and mining and fishing.

The Economic Outlook for 2023 – Africa and Mozambique study was conducted by the economic research team from Rand Merchant Bank (RMB), the corporate and investment banking arm of FirstRand Bank Limited. The presentation of this study was led by Daniel Kavishe, Africa Economist at RMB and Alfredo Mondlane, Senior Credit Manager at FNB.

Growth can be expected in a markedly adverse economic environment characterized essentially by shocks arising from geopolitical, financial and political-military (Russia-Ukraine conflict) uncertainties.

The signals sent out by the economy indicate a trend towards economic recovery, following a period of deceleration caused by the fall in the prices of the main commodities on the international market and the COVID-19 pandemic. Meanwhile, the export of gas from the Rovuma basin (an offshore project) is expected to continue to grow in 2023, as is that of mineral coal, resulting from the Russia-Ukrainian conflict.

“The economic narrative for Mozambique is good and we expect growth in the range of 5-6%. When we compare this year’s economic growth to that of previous years, a state of gradual recovery is visible,” Alfredo Mondlane from FNB said.

Kavishe noted that, in terms of the African continent, inflation would see a significant reduction and would remain structurally above average in the long term. Kavishe also stressed that fiscal policy could remain limited in most markets, due in part to high financing costs.

About FNB Mozambique

FNB Mozambique is a subsidiary of FirstRand Bank Limited, the largest financial services instituition in Africa by market capitalization and one of the largest institutions listed on the Johansburg Stock Exchange in South Africa, with presence in 11 countries in Africa and also in England, United Arab Emirates, India and China. FNB has been operating in Mozambique since 2007, with presence throughout the country, focusing on providing financial services to Mozambican businesses, their value chains and inidividuals. FNB Mozambique is owned by FirstRand Mozambique Holding; FirstRand EMA Holding (PTY), Limited; and FirstRand Investement Holding Proprietary, Limited.