Mozambique business investment hampered by high credit costs

Agostinho Vuma, president of the Foundation for Business Competitiveness (FUNDEC), has warned that high credit costs are hindering the ability of Mozambican companies to invest, expand production, and innovate. Speaking at the 2nd FUNDEC Economic Outlook in Maputo, Vuma noted that while the financial system shows resilience, the cost of financing remains a major barrier to the real economy.

Vuma highlighted that the MIMO rate currently stands at 9.25%, while the financial system’s Prime Rate is at 15.50%. He argued that even with entrepreneurs and resources available, competitiveness will be fundamentally constrained if access to credit remains difficult and expensive. The central challenge for the country is to translate macroeconomic stability into tangible growth and investment for the productive sector.