Mozambique’s Major Banks Report Financial Struggles Amid Economic Slowdown

Two of Mozambique’s largest banks, Moza Banco and Millennium Bim, have reported disappointing financial results, signaling growing challenges for the country’s banking sector and public finances.

Declining Bank Performance

Moza Banco recently disclosed a net loss of approximately $1.4 million (in metical equivalent) for 2024, while Millennium Bim saw its net profit plummet to just under $52 million in 2023 – less than half of its $112.6 million profit from the previous year.

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Economic Impact of Political Unrest

These financial setbacks highlight the significant economic damage caused by election-related protests during the second half of last year. While Mozambique’s banking sector had previously outperformed other industries, it has not been immune to the broader economic slowdown triggered by demonstrations and violence.

The downturn appears widespread, with rumors suggesting BCI, another major Mozambican bank, also experienced declines. However, Standard Bank reportedly bucked the trend with profit growth in 2023.

Related Developments in Mozambique

In other news, Islamic State-linked insurgents have reportedly killed Rwandan troops in Mozambique’s Cabo Delgado province, marking the first time photographic evidence has been provided to support such claims.

For more in-depth coverage of Mozambique’s economic and security situation, read the full report at Zitamar News.