A few days ago, Banco Société Générale held a business breakfast on the subject of financing international trade, foreign exchange operations and commodities.

At the event, which brought together various players in the economy, including companies that produce, process, export and import commodities and services, it was noted that climate change, the after-effects of Covid-19, wars and inflation are currently the biggest challenges facing the global economy, with the poorest countries, especially those in Africa, suffering the most from shocks to international trade.
According to the Managing Director of Société Générale, Ridha Tekaïa, Mozambique has the potential to succeed in the Global Trade arena, as it has an added value in natural resources, maritime and land channels compared to other nations in the region.

"Mozambique has grown a lot in terms of exports, and is in 115th place in the ranking of world exports. We see that, in terms of trade balance, Mozambique and Madagascar have many similarities, while Mozambique triples what Madagascar has in terms of mineral resources, but Madagascar does more in terms of exports. So it's important to see what we can do for a country that has the potential of Mozambique," said Tekaïa.

Another key and challenging sector for the country is Agribusiness, as private banking has restrictions and some privations, considering it a risky sector. Aware of this, the Société Générale group claims to have financing lines for SMEs, with attractive interest rates on the market.

The Head of the Agribusiness and Consumer Goods Industry Sector at Banco Société Générale, Milton Langa, says that it is the bank's constant practice to publicize these opportunities, as Mozambique is still a country that imports agricultural products even though it has arable land. For this reason, the bank makes a point of exposing itself to the market, encouraging SMEs to sign up to these lines of finance in order to produce more locally and contribute to reducing imports.

"We have had positive results, characterized by low default rates, because the credit operations are all associated with risk-sharing and coupled with technical assistance, i.e. we include the capacity-building aspect for SMEs," concluded Langa.

One of the major concerns in trade relations with foreign countries is the availability of foreign currency. Importers find it difficult to buy foreign currency, which has a negative impact on the timing of deals.
On this fileThe institution has been studying the dynamics of the foreign exchange market and has therefore clarified the variables in this segment.

"We feel that this January, the pressure has been greater, which may still be due to the effects of Covid-19, but we believe that with the investment that the country will receive with the start of gas exploration, Mozambique will have more foreign currency, but the exchange rate pressure may continue. We have to monitor market developments," explained Emídio Branquinho, Director of the Bank's Market Room.

Banco Société Générale Moçambique is a member of the Société Générale Group, one of the largest leaders in the European Financial Sector, with an A rating (S&P) and one of the three largest international groups present in Africa. In Mozambique, the Group has been operating since 2015, has 19 subsidiaries and was awarded the Best Bank in Africa by the Euromoney Awards in 2018.