The past three years have not been easy for Mozambique’s banks. Previously one of the world’s most rapidly expanding economies, growth has slowed since the revelation in 2016 of a series of hidden government debts. This prompted the International Monetary Fund to cut off support to the country, triggering a collapse in the local currency and a default on its debts, plunging the wider economy into crisis.
“In the past three to four years Mozambique has been facing huge economic challenges,” says José Reino da Costa, CEO of local bank Millennium bim. “Many companies have had financial difficulties, as have consumer clients, meaning that we’ve seen non-performing loans [NPLs] rising in the country.”
