Mozambique business confidence dips while non‑performing loans improve

The Economic Climate Index (ICE) for Mozambican firms fell to 87.2% in the second quarter of 2026, marking the eighth consecutive quarterly decline and approaching the series' historical low of 81.7% recorded in 2020. The drop was driven by weaker confidence in industrial production and a continued decline in trade, although the services sector showed a modest recovery and demand expectations improved.

Non‑performing loans (NPL) in Mozambique’s banking sector decreased to 27.99 billion meticais (about €384 million) in 2025, representing a 7.97% reduction from the previous year and a NPL ratio of 7.47%, down from 9.31% in 2024. While the ratio remains above the internationally recommended 5% threshold, the central bank noted a low overall credit risk but warned that extreme climate events could pressure borrowers, especially in agriculture, transport, communications, industry and commerce.