Maputo, Sept. 3, 2026 (Lusa) - Conditions for Mozambican businesses improved in August for the second month running, with business confidence reaching its highest level in over four years, driven by growth in output, orders and employment.
Standard Bank's monthly survey, to which Lusa gained access on Thursday, concludes that Mozambique «remained in an expansionary phase in the middle of the third quarter of 2026», with businesses reporting a significant rise in demand, driven by growing business confidence, which led to increased purchasing activity and recruitment.
The Mozambique PMI rose from 51.4 points in July to 51.9 points in August, signalling «the sharpest improvement in business conditions in over four years» and the highest figure since June 2022. Readings above 50 points indicate an improvement in business conditions compared with the previous month, whilst figures below 50 point to a deterioration.
«One of the key findings of the latest survey was a solid expansion of business activity amongst Mozambican firms. In fact, firms recorded their fastest rate of growth in the last three years, which they closely linked to a strong rise in sales,» the report states.
The pace of growth in new business followed the trend in output and accelerated to its highest level since July 2023. Respondents frequently cited the acquisition of new customers, an increase in work orders and improved market conditions.
According to the study, construction led the growth in output and new orders, in a month in which most sectors recorded an expansion in activity.
Also noteworthy is an improvement in business expectations, with 61% of respondents forecasting an increase in output over the next 12 months, whilst fewer than 1% anticipate a decline, marking the highest level of business optimism since May 2022.
«Mozambican companies have shown even greater optimism in their forecasts for the coming year,» the document states, adding that these expectations are based on the strong demand anticipated, as well as on investment plans and plans to increase capacity.
Employment, meanwhile, returned to growth in August following the decline recorded in July, with the rate of job creation being the strongest since February, driven by rising sales and demand.
Companies also stepped up their procurement of means of production and stockpiling, benefiting from improvements in supply chains. Suppliers' delivery times showed the best improvement since March, and respondents reported fewer instances of disruption to land transport routes.
Quoted in the report, the chief economist at Standard Bank Mozambique, Fáusio Mussá, stated that the PMI had accelerated again, having already reached its highest figure in over three years in July.
«Furthermore, from the perspective of business sentiment, the PMI continues to point to an improvement in the economic outlook. This trend was reflected in the PMI's sub-index for future business expectations, which recorded a further increase in August,» he added.
According to Mussá, this development «essentially reflects the progress made on liquefied natural gas (LNG) projects, which is expected to boost aggregate demand over the next 12 months.
The economist also noted that «a slow recovery in economic growth» is underway, supported by an improvement in the supply of foreign currency in the foreign exchange market resulting from coal exports and foreign direct investment in LNG.
«The PMI data suggest that GDP growth has bottomed out and that a recovery is under way. However, we maintain our GDP growth forecast for 2026 at 0.7%,» he concluded.
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