IMF warns that crisis in Portugal may affect Mozambique and Angola

23 December 2011

Maputo, Mozambique, 23 Dec – The International Monetary Fund (IMF) has warned of the potential contagion of the Portuguese crisis to the Mozambican and Angolan economies. In reports published recently on Angola and Mozambique, Portugal is mentioned as a risk factor both because of the relations between the banking systems and because of a drop in investment, Mozambican newspaper O País reported.

For Portugal, Angola and Mozambique are considered to be two markets in which to find refuge from the domestic recession. But for the two African countries, Portugal is a risk.

In Mozambique, at least four banks are part-owned by Portuguese financial institutions. They are Millennium bim (the biggest retail bank in Mozambique), which is majority-owned by Banco Comercial de Portugal (BCP); Banco Comercial e de Investimentos – BCI (around 80 percent owned by Portuguese state bank Caixa Geral de Depósitos and by Banco Português de Investimentos); Moza Banco (part-owned by Banco Espírito Santo); and Banco Único (majority-owned by the Amorim Group).

Figures from the Investment Promotion Centre (CPI) for the first half of 2011 placed Portugal in second place in the ranking for foreign investment in Mozambique, after ending last year in first place, which indicates a downturn in Portuguese intention to invest in Mozambique. (macauhub)