Mozambique’s banking sector needs more capital

5 December 2016

The director of the Bank of Mozambique Joana Matsombe on Friday in Maputo said banks operating in the country should increase capital in order to be able to participate more actively in the development of natural resources, including natural gas, wrote the Mozambican press.

Matsombe, who was speaking at an international conference on natural gas ended on Friday in the Mozambican capital, stressed that to date the Mozambican financial institutions accounted for only about 16% of investments in natural gas research, with more than 80% originating from foreign direct investment.

“The national bank sector has to capitalise to have a greater share in the financing of investments in energy resources, which involvement would help the national financial system to assert itself and expand its returns,” said Matsombe.

The director of the central bank acknowledged, however, that the small size of the Mozambican financial system implies that it can only have a marginal participation in projects related to the development and exploration of natural resources.

Matsombe added that international groups that are prospecting for natural gas have resorted to external bank financing to secure the many billions of dollars needed to develop ongoing projects. (macauhub)