Mozambique – 97
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Population (mn)
20.2
Population Growth (annual %)
1.8
Official Language
Portuguese
Currency
Metical (MZN)
GDP (Current US$ bn)
7.21
GDP Growth (annual %)
7.2
GDP Per Capita (US$)
358
FDI, net inflows (US$ mn) (2005)
108
External Debt (US$ mn)
4,500
External Debt/GDP (%)
61
CPI Inflation (annual %)
12.7
Exports of goods and services (% of GDP)
37.5
Gross Official Reserves (US $ bn)
1,114
Impor Cover (months)
4.2
UNDP HDI Ranking
168
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2006 At a Glance
2275 m
Po
n
MOZAMBIQUE
g olo
Witkoppies�
2336 m
GEOATLAS - Copyright1998 Graphi-Ogre
Long-Term Sovereign Ratings
0 km
100
200
300
400 km
Long
Term
Local
Currency
Foreign
Currency
Fitch
B+
B
S&P
B
B
Source: AfDB, IMF, UNCTAD, UNDP, UN Population Division
1.Overview of the Financial System
The central bank, Banco de Mozambique (BDM), has
institutions include one investment bank, three leasing
independence in controlling money supply, inflation
companies, five credit and savings co-operatives and
targeting and supervision of banks amongst other
a number of micro-finance institutions.
functions. Monetary policy has been successful in
reducing inflation since 2005.
The insurance and pension sectors are small. Even
with the recent privatisation efforts, the insurance
market remains dominated by the state-owned
Bank and Non-Bank Financial Sector
insurer, which provides all types of insurance and
As at the end of 2006, there were nine commercial
reinsurance. The Ministry of Finance regulates the
banks and they account for 90% of the system’s
insurance sector.
total assets. This number has significantly increased
from 1992 when the liberalisation of the banking
Capital Markets
sector occurred. Before this time, Banco Standard
The Bolsa de Valores de Moçambique (BVM), is the
Totta de Moçambique (BSTM) was the country’s
stock exchange, which opened in Maputo in 1999.
only private bank. These nine banks are all foreign-
There is one stock listed on the BVM, Cervejas de
owned.
Internacional
Moçambique, majority-owned by a foreign company.
de Moçambique (BIM), accounts for 44% of total
Trading on the exchange is conducted mainly by
banking assets and owns 42% of total banking
commercial banks. The BVM is a very small and
system branches. The Government aims to privatise
illiquid stock market.
Portuguese-owned
Banco
further by selling its stake in BIM. Other financial
98 – Mozambique
2. Fixed Income Markets
are also available, with coupons linked to prevailing
Government Securities
rates for treasury bills.
Government
bonds
have
been
in
existence
Treasury bills have maturities of 91-, 182- and 364-
since 1999. In the first phase, the bonds will be
days, as displayed in the graph below.
reimbursed in three years at varied interest rates
The following government and corporate bonds are
and also adjusted to the re-discount rate of the
listed on the exchange.
central bank. Longer-term and floating-rate bonds
Stock
Admitted to
quotation
Volume
Amount
(MZM billion)
Tesouro-2001/I – 1ª Série
2.338.000
176.720
17,672
Tesouro-2002 – 2ª Série
1.000.000
2.925
0,293
Tesouro-2004
2.500.000
50
0,005
Tesouro-2005 – 1ª Série
4.960.000
1.049.175
104,918
Tesouro-2005 – 2ª Série
300.000
-
-
Tesouro-2005 – 3ª Série
16.673.180
108.430
10.843
BIM 2003
650.000
-
-
BIM 2003 Subordinadas
850.000
-
-
TDM 2004
1.250.000
750
0,064
Cimentos de Moçambique/2004
1.983.333
222.850
17,828
MCEL 2005
3.360.000
10.000
1,000
Bond Description
3. Foreign Exchange
28,000
freely floating currency. Access to foreign exchange
26,000
is greatly liberalized by the passage in 1996 of a
new Exchange Control Regulation Law. Foreign
exchange retention accounts are permitted for
100% of foreign exchange earnings, without formal
justification. Investment registration and repatriation
M
MZM Per Unit of USD ( Until July 2006 )
The Mozambican Metical (MZM) is an independent,
24,000
22,000
20,000
2001
2002
2003
2004
2005
2006
Source: Bloomberg
application procedures must be adhered to in order
to repay foreign loans and repatriate invested capital,
profits, and dividends in excess of USD 5,000. Debt
first quarter of 2007, the currency stood at MZN
servicing requires an approval letter from the central
26.479 /1 USD.
bank at the time of the loan.
The Mozambican Metical was redenominated in July
4.Investment Taxation
2006, taking three zeros off the existing currency
The following taxes are applicable to investment
value versus the U.S. dollar. The Mozambican “New
income: corporate capital gains tax rate of 32%,
Metical” (MZN) is MZM/1,000.
withholding tax dividends of 20%, withholding tax
The MZM has been on a depreciating trend since
December 2004, reaching MZM 26,170/1 USD at
the end of December 2006. As at the end of the
interest of 20%, and personal capital gains tax of
32%.
Mozambique – 99
5. Key contacts
• Banco de Moçambique
Av. 25 de Setembro 1695, P.O. Box
423, Maputo, Mozambique
Tel: +258-1-318000/9
Fax: +258-1-323712
E-mail: [email protected]
Web: www.bancomoc.mz
• Bolsa de Valores de Moçambique
Avenida 25 de Setembro No. 1230,
5th Floor, Maputo, Mozambique
E-mail: [email protected], [email protected]