Africa-Press – Mozambique. Mozambique’s economic activity recovered in November, remaining in positive territory for the second consecutive month, with new business rising “at strongest rate in 17 months,” according to the PMI index released today by Standard Bank.
“Output in Mozambique increased at a faster rate in November, according to latest PMI® survey data, supported by a solid upturn in new business and higher employment. New orders notably rose by the greatest degree since June 2024. However, firms continued to destock, while input price pressures accelerated,” the Purchasing Managers’ Index states.
Quoted in the document, Standard Bank Mozambique’s chief economist, Fáusio Mussá, notes that most sub-indices of the November PMI (Purchasing Managers Index) “came at the level of 50 or above, denoting month-on-month (m/m) increase in the respective business metric,” with the PMI suggesting “some passthrough from cost increases to higher sales prices.”
He also warns that “the possibility of shutdown at Mozal at the end of the first quarter of 2026, if the company cannot secure a favourable electricity tariff, implies further temporary growth, fiscal and FX [foreign currency] pressure.”
“Mozambique’s economy had negative GDP growth in the first three quarters of 2025, averaging -1.9% and denoting a slow recovery from post-election fallout. We see GDP growth turning positive this last quarter of 2025, supported by favourable base effects, but with a high risk of turning negative from the second quarter of 2026 if Mozal is shut down,” Mussá further warns.
The PMI index rose from 49.1 in June to positive territory in July, at 50.7, but fell again in August to negative territory at 49.9, and in September to 49.4, recovering in October to 50.4 points and in November to 50.8.
PMI readings above 50 points indicate an improvement in business conditions compared to the previous month, while readings below this value show deterioration.
The latest report states that companies received “higher volumes of new orders for the second consecutive month” in November, with the growth rate “accelerating and marking the sharpest increase recorded in nearly a year and a half.”
“Notably, all five sub-sectors monitored by the PMI survey saw new business increase, with panellists commenting on rising customer demand and the success of new products. Subsequently, business output expanded over the latest survey period, with growth strengthening to the fastest since July,” it emphasises.
It adds that “firms commonly stated that an improvement in demand had encouraged an increase in activity” last month and that employment was “area to experience a boost in November,” with the latest data “signalling the strongest round of job creation since July last year.”
“As with new orders, the increase in staffing was broad-based across the sectors monitored. In contrast, firms cut their inventories for the seventh month running, indicating a lack of appetite to hold stocks in reserve,” the Standard Bank report further notes.
