Mozambique: Pension fund deposits in banks fell 75% in one year

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Mozambique: Pension fund deposits in banks fell 75% in one year

2:30 CAT | 11 Jul 2025

File photo: Banco de Moçambique

Pension fund deposits in Mozambican banks fell 75% last year, to the equivalent of €44.5 million, according to data compiled today by Lusa from a central bank report.

According to a financial stability report from the Bank of Mozambique, the amount of pension fund deposits, “in a universe of 17 supplementary pension funds and two mandatory social security institutions,” reached 3,340 million meticais (€44.5 million) on December 31, 2024.

In December 2023, this amount of deposits amounted to 13,110 million meticais (€174.9 million), thus “the scenario attests to the reduction in the risk exposure of pension fund assets in these credit institutions.”

This was “possibly due to the preference for alternative investments of their funds over bank deposits. In the period in question, the share of pension fund deposits in total banking sector deposits was 0.47%, compared to 2.06% in the same period in 2023”, the document explains.

It adds that this reduction in the share of deposits in the banking system “demonstrates that pension fund resources tend to be a less significant source of financing, with a negligible impact on the assessment of liquidity risk”, as in 2020 this share was 4.23% and has been declining since then.

“Pension funds proved to be a less significant source of financing for the banking sector, yet they are relevant to the Securities Market (MVM),” the report further states. “Pension fund deposits represented 0.47% of total banking sector deposits. In turn, the weight of the value of securities held by pension funds in relation to total securities in the MVM sector was 30.47%.”

It adds that “the pension fund sector thus proved to be a relevant source of financing for the MVM sector and less significant for the banking sector”, which “has a broader base of financing sources”.

Source: Lusa