The Bank of Mozambique recently announced a reduction in the monetary policy interest rate (MIMO Rate) from 17.25% to 16.50%. Entrepreneurs welcome the measure with the prospect of reducing the debt burden of companies by around five percent.

According to the President of the Confederation of Economic Associations - CTA, Agostinho Vuma, the central bank's measure is a sign of strengthening confidence, not least because the outlook for inflation remains in the single digits.

Speaking at the launch ceremony of the XIX CASP - Annual Private Sector Conference, Vuma said that, despite the measure, a greater reduction in the MIMO rate would greatly help the agricultural sector.

Entrepreneurs are advocating a reduction in interest rates to below one digit for the greater benefit of the productive sector.

"Even if we look at the level of difficulties that the agricultural sector has, it's not healthy to associate other risks with it, such as access to capital for investment," he said, noting that the WB is one of the first in the world to implement an interest rate cut.