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The Mozambican Government has acknowledged that difficulties in accessing foreign currency affected economic performance and state revenue collection during the first half of 2026, at a time when businesses continue to report constraints in carrying out imports, international payments and transfers abroad.
According to the first-half budget execution report prepared by the Ministry of Finance, state revenue reached 183.3 billion meticais, equivalent to 95.03% of the target set for the period.
Although this represented nominal growth of 6.68% compared with the same period a year earlier, the Government said performance remained below expectations due to several internal and external factors, including limited access to foreign currency.
According to the report, revenue collection was affected by the non-payment of certain offshore services provided by non-resident entities because of foreign currency shortages.
Foreign exchange restrictions also affected taxes linked to dividends paid abroad, following the suspension of payments related to 2025 profits to non-resident entities.
The Government also identified weak transfers of own-source, earmarked and capital revenues by some public institutions as another factor that contributed to lower-than-expected execution.
End of USAID Projects Also Affected Revenue
The report also points to the closure of projects financed by the United States, particularly through the United States Agency for International Development, as another factor that affected revenue collection.
According to the Government, the end of these projects had a direct impact on Personal Income Tax revenue associated with employees working under those programmes.
Bank of Mozambique Rejects Generalised Shortage
The Ministry of Finance’s assessment contrasts with the position of the Bank of Mozambique, which argues that there is no generalised shortage of foreign currency in the market.
Central bank governor Felisberto Navalha said that by August, the banking system had purchased around 5.73 billion US dollars in foreign currency from the market, an increase of 724 million dollars compared with the same period a year earlier.
Foreign currency sales by banks to their clients reached approximately 5.65 billion dollars over the same period, up by 593 million dollars.
According to Navalha, the figures show that the foreign exchange market continues to record high volumes of purchases and sales, supported in part by liquefied natural gas projects in the Rovuma Basin and the performance of the extractive industry.
The governor acknowledged, however, that temporary shortages may occur at specific financial institutions, arguing that such situations should not automatically be interpreted as a lack of foreign currency across the entire market.
Navalha took office as Governor of the Bank of Mozambique on 2 September 2026, succeeding Rogério Zandamela.
Businesses Describe Situation as an Economic Emergency
The central bank’s position also contrasts with warnings from the private sector.
The Confederation of Economic Associations of Mozambique has repeatedly argued that difficulties in accessing foreign currency are directly affecting business operations.
The organisation’s president, Álvaro Massingue, previously described the situation as an “economic emergency”, warning that without regular access to foreign currency, companies face difficulties importing raw materials, meeting international contractual obligations and expanding their operations.
The available official data therefore reflect different assessments of the foreign exchange market. While the Ministry of Finance acknowledges that foreign currency shortages have affected certain economic and fiscal operations, the Bank of Mozambique maintains that the problem is not generalised and may instead be concentrated in specific institutions or transactions.
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