The Business Robustness Index in Mozambique advanced by one percentage point in the last quarter of 2023, standing at 30%, compared to 29% in the previous quarter, the President of the Economic Associations - CTA revealed today.

"This performance, although higher than in the previous quarter, is quite fragile," said Agostinho Vuma, at the presentation of the 14th edition of the Business Robustness Index (IRE) Report.

This weak growth was largely influenced by shortcomings in agricultural marketing, "such as logistical issues until the phytosanitary certificate can be obtained"; the high level of interest rates; and the reduction in demand for goods and services from the state, said Vuma, noting, however, progress in the marketing (export) of pigeon peas to India.

This sluggish progress was also hampered by the high financial charges with banks, the high level of indebtedness of companies to banks, as well as the continuous accumulation of unpaid invoices to suppliers by the state. "...companies have repeatedly pointed to this aspect as limiting their growth process."

In his speech, Vuma said that this data is considered to be based on the current national and international economic context, influenced by endogenous factors such as terrorism in Cabo Delgado province, kidnappings and the phenomenon of El Niño throughout the country, and exogenous ones, namely the Russian-Ukrainian, Israeli-Palestinian wars and tensions in the Middle East.

Despite this, the macroeconomic environment has improved, with the respective macroeconomic index computed by CTA rising from 42% in the third quarter of last year to 47% in the following quarter. This improvement reflects the reduction in the inflation rate and continued exchange rate stability.

"In the quarter under review, and in the context of the festive season, there was some momentum in sectors such as hotels and restaurants, as well as trade in goods. However, our assessment indicates that the boost was less than expected," noted Vuma.