Overwhelmingly, Mozambicans use cash to settle day-to-day transactions, though mobile money transfer systems have become popular. These are led by M-PESA (Vodacom), mKesh (Tmcel), and e-Mola (Movitel). Visa is the dominant credit card and owns a market share of over 90%.
The Interbank Society of Mozambique (Sociedade Interbancária de Moçambique, or SIMO) announced in 2022 that it would decommission the eponymous SIMOrede – Mozambique’s counterpart of the SWIFT interbank transaction system in favor of American company Euronet, which formerly acted as the SIMOrede system’s backstop. Implementation began in 2023 and has caused occasional disruption of service for foreign cards and continued disruption for Mastercard, which previously worked in the country. Financial industry contacts expect the process to continue towards completion in the next two years.
Mozambique’s financial system provides for the most common methods of payment, including open account, letter of credit, cash in advance, documentary collections, etc. Standard and Poor’s and Fitch issue credit ratings for the Government of Mozambique and have recently downgraded their ratings. There is an Information Credit Bureau at the Central Bank that provides information on collection agencies in the country. Law firms also perform collection functions for a fee.
For more information about the methods of payment or other trade finance options, please read the Trade Finance Guide.
Banking Systems
It is a common practice for companies and individuals to hold multiple currency accounts. The U.S. dollar, euro, and South African rand are common commercial currencies. Foreign currency payments are accepted in most formal commercial establishments, especially with the U.S. dollar.
Interest rates in Mozambique can be very high for loans in local currency (metical), with the Bank of Mozambique’s policy rate set at 17.25% for most of 2023. The use of credit cards is relatively new, sometimes making small payments inconvenient. However, credit cards are regularly used in the capital city of Maputo. Mozambican businesses and consumers continue to adopt formalized financial payment systems.
Foreign Exchange Controls
Foreign exchange is available to importers and exporters to finance current account transactions. An application to purchase the necessary foreign currency must be approved by the Bank of Mozambique before an exporter or importer may purchase foreign currency from commercial banks or exchange houses. Such applications are routinely approved by the Central Bank within 15 days, upon presentation of documents relating to the goods in question. Applications can be approved prior to the arrival of goods in Mozambique. Commercial banks and exchange houses may apply for authorization on behalf of their clients. Applications must include proof of the importer’s/exporter’s ability to finance the transaction. For advance payments more than $50,000, a performance guarantee from a banking institution may be required.
Loans in foreign currency are only available to exporters and some approved projects that benefit the country.
US Banks & Local Correspondent Banks
There are no U.S. banks in Mozambique, here is a list of correspondent banks:
· ABSA
· Banco Comercial e de Investimentos (BCI)
· BancABC
· Banco Único
· Millennium BIM
· Moza Banco
· Nedbank Mozambique
· Standard Bank
· Société Générale Moçambique.
For more information on the banking system please read the section Capital Markets and Portfolio Investment of the Investment Climate Statement.