Standard Bank recently held the nineteenth edition of the Economic Briefing, an event through which the bank provides its clients and society in general with relevant information on the outlook for the economy.

During the meeting, whose theme was "Mozambique: Natural Gas and the Energy Transition", the bank reiterated its commitment to financing clean and sustainable energy generation projects, including those based on renewable sources.

The bank chose this theme as a way of stimulating and contributing to the debate on the need to invest in clean and "environmentally friendly" energies, a sector with enormous potential and which can lead the country and the world towards achieving the Sustainable Development Goals (SDGs).

"We chose the energy transition as the central theme of our last Economic Briefing of the year because, as a financial institution committed to economic development and the well-being of the communities we serve, we recognize the vital importance of addressing and tackling the energy challenges of our time," said Standard Bank's Chairman of the Board of Directors (PCA), Esselina Macome.

Also in this regard, Esselina Macome said that the bank has collaborated with local partners to support the expansion of renewable energy sources and the development of infrastructure for the responsible exploitation of natural gas, including the adoption of concrete measures to support the country's energy transition.

With this in mind, relevant personalities from the energy sector in Mozambique were invited to the debate, in particular Carlos Yum (executive director of the Mpanda Nkuwa Project), Pedro Nguelume (executive administrator for the Business Development Area of EDM - Electricidade de Moçambique), Nazário Bangalane (chairman of the Board of Directors of INP - Instituto Nacional de Petróleo) and Isália Dimene (executive administrator for the Projects Area of FUNAE - Fundo Nacional de Energia).

As has always been the case, the event also served as an opportunity for the bank to present an analysis of the outlook for the Mozambican economy as a way of guiding clients and society in general when making business decisions.

According to Standard Bank's chief economist, Fáusio Mussá, there is a downward trend in inflation, which in September stood at 4.6%, "which is considered encouraging as it is a significant drop, after reaching 13% last August, but he noted that the risks remain high, especially considering the possible impact of tension in the Middle East on fuel prices. In this context, monetary policy is expected to remain tight".

Fáusio Mussá also noted the prospects for an expansionist fiscal policy, considering the general elections in October 2024. He noted that the proposed State Budget for 2024 foresees a strong growth in the state's domestic net borrowing, of 22.8 billion Meticais or 1.5% of GDP, to partially finance a significant increase in investment spending.

"From the point of view of economic growth, the economy is showing some resilience and Gross Domestic Product (GDP) growth is tending to accelerate, especially considering the impact of the Coral Sul project," said Fáusio Mussá.