Mozambique Pushes Savings Amid Fiscal Strain
Banco de Moçambique launched World Savings Week to raise the national savings rate above 15% of GDP. With the metical (MZNUSD=X) steady near 63.5 and oil (CL=F) at $88, officials hope digital deposit growth strengthens household resilience and funding stability.
Mozambique’s central bank has launched its annual World Savings Week campaign, running from 27 to 31 October, to promote household savings and financial literacy amid a tightening economic environment. The initiative, coordinated by Banco de Moçambique and the National Financial Inclusion Secretariat, brings together commercial banks, microfinance institutions, and fintech firms to encourage long-term saving habits across all provinces.
Governor Rogério Zandamela emphasized that increased savings mobilization is vital for broadening domestic funding capacity and reducing reliance on foreign inflows. Mozambique’s gross domestic savings rate remains below 15% of GDP—among the lowest in Southern Africa—while credit-to-GDP lingers near 25%. The central bank aims to raise national savings by at least 3 percentage points by 2027 through targeted education programs and incentives for digital deposits.
Inflation pressures have eased modestly, with the consumer price index (CPI) up 5.7% year-on-year in September compared to 9.1% a year earlier, supported by a stable metical (MZNUSD=X) near 63.5 per dollar and easing global fuel prices (CL=F) around US$88 per barrel. Nonetheless, policymakers warn that low savings buffers continue to expose households to shocks from food and fuel volatility.
The campaign’s activities include school-based savings clubs, community roadshows, and mobile-banking drives emphasizing the use of regulated digital platforms for small savers. Commercial banks are offering temporary bonus interest rates and fee waivers to attract new accounts, while microfinance providers have pledged simplified documentation requirements for rural clients.
Mozambique’s National Financial Inclusion Strategy (2022–2030) seeks to expand formal financial access to 75% of adults by 2030, up from 44% in 2022. The central bank is integrating lessons from Kenya’s M-Pesa and Ghana’s mobile-wallet ecosystems to accelerate digital uptake. Officials note that the financial-education component remains critical, as past campaigns showed that awareness often rises faster than account utilization.
The broader macro context is cautiously improving. GDP growth is projected at 4.6% in 2025, driven by LNG and construction, while private-sector credit growth has stabilized near 7%. If sustained, higher domestic savings could lower banks’ funding costs, deepen capital markets, and reduce vulnerability to external shocks—an essential step for monetary-policy transmission and long-term financial resilience.
