Business robustness index rises to 31% in the first half of 2024, reveals CTA

The Confederation of Economic Associations of Mozambique (CTA) presented the 15th edition of the Economic Briefing in Maputo on Wednesday, August 14. The event focused on analyzing the dynamics of business and investment during the first half of 2024, highlighting a slight improvement in the Business Robustness Index.

According to Agostinho Vuma, president of the CTA, the Business Robustness Index increased by 1 percentage point to 31%. This index, which reflects the weighted average of the provincial indices, was boosted by factors such as the start of the agricultural marketing campaign and the export season for products such as cotton and shrimp.

Vuma stressed that, despite the improvement, some challenges continue to impact the business environment, in particular the lack of phytosanitary certificates being issued, the rising costs of agricultural inputs and logistics, and the foreign exchange restrictions imposed by the Bank of Mozambique (BoM). “The worsening of access to foreign currency on the national market has been a very negative factor that influences business transactions, particularly those that depend on international trade,” explained the CTA leader.

These exchange restrictions, introduced by the BdM, have made it difficult for companies to pay import invoices, resulting in a downward trend in the volume of imports. Vuma pointed out that between January and February, there was an average monthly drop of 2.3% in imports, a trend that increased to 2.5% in the first quarter of 2024, compared to the same period in 2023.

He also highlighted the importance of exports as a source of foreign currency generation for the country, noting that the coverage of exports over imports, excluding major projects, is estimated at just 20%. “This means that the deficit in the supply of foreign currency without major projects reaches 80%,” he warned.

The CTA Economic Briefing serves as an important barometer for measuring the health of the Mozambican business sector, offering a detailed overview of the challenges and opportunities facing business in the current macroeconomic context.