Mozambique central bank published its Q1 2025 (January-March) balance of payments report on September 5, 2025, analyzing factors behind current account improvement and foreign direct investment trends.
Significant Current Account Improvement
The current account deficit improved 15.7% from .3 million in the previous year to .1 million. This improvement resulted from reduced deficits in goods trade balance and primary income account, showing positive signs in the country external balance structure. The trade deficit dramatically narrowed 91.8% from .2 million in the previous year to just .7 million, serving as the primary driver.
Detailed Export-Import Analysis
Goods exports increased 4.8% from .766 billion in the previous year to .851 billion. Natural gas and aluminum led export growth, with natural gas rising 28.1% year-on-year to .7 million and aluminum surging 88.3% to .7 million. These gains resulted from increased export volumes plus rising average international prices of 12.8% for natural gas and 14.0% for aluminum. Meanwhile, goods imports decreased 7.3% from .020 billion to .872 billion, with major categories declining including machinery (import value million, down 17.7% year-on-year) and fuel (.5 million, down 33.7%).
Foreign Direct Investment Surge
Foreign direct investment more than doubled from .2 million in the previous year to .626 billion. Natural gas sector investment drove overall growth, increasing 3.2-fold year-on-year to .234 billion. By investment type, other capital including loans comprised 92.6% of total investment at .506 billion, confirming active capital inflows into the country.
The article evaluates that Mozambique Q1 2025 showed significant current account improvement through strong natural gas and aluminum exports plus surging foreign direct investment, indicating signs of structural economic transformation and enhanced international competitiveness.