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Mozambique

Government and institution measures in response to COVID-19.

Government and institution measures in response to COVID-19.

Return to homepage  |  Last updated: 28 October, 2020

General information

The government announced the reopening of schools for 12th grade (pre-university) and teacher training colleges. The new state of emergency envisages gradual easing of restrictions in three phases starting on August 18 with low risk activities including reopening of universities and other senior level colleges and religious gathering with no more than 50 people. In October, the government introduced additional requirements for firms to ensure readiness to manage COVID cases.

Tax measures – Direct and Indirect

(e.g. payment deferrals, rate reductions…)

Click to see a comprehensive summary of jurisdictional tax measures and government reliefs in response to COVID-19.

Economic stimulus measures

(e.g. loans, moratorium on debt repayments…)

  • The government has increased the budget allocation for health, from about MT 2 billion (or about 0.2 percent of GDP) to about MT 3.3 billion (0.3 percent of GDP).
  • In addition, the Government is asking Mozambique’s development partners for US$ 700 million for help to deal with the economic impact of the pandemic.
  • On March 22, it announced measures to support financial markets and encourage prudent loan restructuring by: (i) introducing a foreign currency credit line for institutions participating in the Interbank Foreign Exchange Market, in the amount of US$ 500 million, for a period of nine months; and (ii) waiving the constitution of additional provisions by credit institutions and financial companies in cases of renegotiations of the terms and conditions of the loans, before their maturity, for clients affected by the pandemic, until December 31.
  • To ease liquidity conditions, on March 16, the central bank reduced reserve requirements by 150 basis points for both foreign currency and domestic currency deposits (to 11.5 percent and 34.5 percent respectively) .
  • On March 30, the central bank announced measures to easy payment system transactions and liquidity conditions by: (i) lowering fees and charges for digital transactions through commercial banks, mobile banking and e-currency, for a period of three months, and (ii) waiving specific provision on foreign currency loans, until December 31. The central bank reduced the policy rate by 150 bps to 11.25 percent on April 16.
  • The metical has been allowed to adjust flexibly and has depreciated by almost 3 percent against the US dollar since early March 2020.

Other measures and sources

  • On On April 29, the central bank introduced a requirement for exporters to exchange at least 30 percent of FX proceeds into domestic currency.
  • On June 17, the central bank reduced the policy rate by 100 bps to 10.25 and lifted the twice a week access restriction on the standing lending facility introduced in October 2016.

Main sources of information