The Bank of Mozambique has introduced a special regime allowing deductions from reserve requirements in national currency, with the aim of encouraging lending for import substitution projects and export diversification.
The measure came into force on Wednesday, 28 October 2026, and will initially remain in place for 18 months.
The measure is set out in Notice No. 9/GBM/2026, published in the Government Gazette on 26 October, and covers loans granted by credit institutions to legally established companies, sole traders and cooperatives, provided they meet the specified requirements.
Under the new regime, banks will be able to deduct from their reserve requirements in national currency an amount equivalent to 110% of the outstanding principal of investment loans and 100% of working capital loans. The mechanism is intended to create incentives for financing productive activities and stimulate the development of the national economy.
Eligible loans include those intended for the acquisition, installation, modernisation or expansion of production capacity, including machinery, equipment and infrastructure, as well as short-term financing for the purchase of raw materials and other production inputs.
The regime covers sectors linked to the production and processing of goods, as well as tourism. The Bank of Mozambique is to specify, by circular, the sectors and specific activities that may benefit from the measure.
To access financing, beneficiaries must be up to date with their tax obligations, maintain organised accounts or simplified records, depending on the applicable tax regime, and demonstrate technical, financial and management capacity. They must also submit a project or plan for the use of the funds showing how it will contribute to import substitution or export diversification.
The notice also stipulates that projects must prioritise the use of raw materials, inputs and production factors of domestic origin. Imports of these resources, as well as machinery and equipment, will be permitted where it can be demonstrated that domestic supply is unavailable, insufficient or technically unsuitable, among other duly justified reasons.
Under the obligations imposed on banks, each credit institution must grant at least 50 new loans in each six-month period. The total value of loans disbursed during that period must be no less than 6% of the average reserve requirements maintained over the previous six periods.
As for interest rates, investment loans will be subject to the MIMO rate, while working capital loans will carry a rate equivalent to the MIMO rate plus a spread of 150 basis points. Rates may vary in line with changes to the MIMO rate.
The regime excludes, among other operations, loans for consumption, the acquisition of financial assets and purely speculative investments. Loans that do not meet the criteria set out in the notice are also ineligible.
Financial institutions must publish the eligibility criteria, access requirements and documents needed to apply on their official websites and at their branches. Failure to comply with the rules may result in the loss of the benefit, repayment of amounts improperly deducted from reserve requirements and the imposition of penalties provided for under the legislation in force.
The regime will last for 18 months. However, the end of this period will not automatically terminate the benefit for loans approved and disbursed while the regime is in force; these may retain the prescribed treatment until the respective loans have been fully repaid.
Source: MzNews
