Mozambique central bank boosts production lending
New rules allow banks to deduct 110% of investment loan principal from reserve requirements.
Mozambique's central bank introduced a special lending regime on Wednesday, October 28, 2026, to encourage financing for national production. The measure, effective for 18 months, allows credit institutions to reduce their reserve requirements by 110% for investment loans and 100% for working capital loans to eligible companies and cooperatives.
This initiative aims to stimulate the national economy by incentivizing banks to fund productive activities, including the acquisition of machinery and raw materials for sectors like goods production, processing, and tourism. Beneficiaries must meet tax and accounting obligations, demonstrate financial capacity, and present projects focused on import substitution or export diversification.
Banks must issue at least 50 new loans every six months, totaling a minimum of 6% of their average reserve requirements. Projects are encouraged to use domestic raw materials, with imports permitted only when local supply is insufficient or unsuitable.
Why it mattersMozambican businesses seeking investment or working capital for production can access new financing options.