The country has reached third position in the African Trade Barometer, the results of which were released by Standard Bank to provide insights and analysis on African trade. The third edition, launched in 2022, covered ten countries, including Mozambique, and revealed significant improvements for the country.
According to Bernardo Aparício, CEO of Standard Bank, the SB ATB is a valuable tool for Mozambican entrepreneurs, offering up-to-date information through business surveys that address perceptions about trade and business opportunities.
Mozambique took third place in the overall SB ATB ranking, marking a remarkable rise from sixth place in September 2022. Mozambican business confidence has also grown, reaching a score of 59 in May 2023, slightly above the average of 58 to 57 observed in the September 2022 edition.
The increase in GDP and Foreign Direct Investment (FDI) flows, following the recovery from the effects of the pandemic, contributed positively to the attractiveness of national trade. Mozambique’s accession to the African Continental Free Trade Agreement (AfCFTA) has also boosted the country’s score, generating expectations of facilitating the movement of goods and services and stimulating cross-border investments.
However, challenges remain. High interest rates, adopted to contain domestic inflation as a result of the global crisis caused by the Russian invasion of Ukraine, have had a negative impact on business attractiveness. In addition, the country’s deficient infrastructure is singled out as an obstacle by the companies surveyed, with electricity supply and the state of the roads highlighted as the aspects with the worst perception.
The conclusion of the third edition of the SB ATB highlights Mozambique’s positive trajectory on the African trade scene, with notable advances and challenges to be faced in order to further strengthen its position in international trade.
