Country Commercial Guide 2006
Chapter 7: Trade and Project Financing
How do I Get Paid (Methods of Payment)
How Does the Banking System Operate
Foreign-Exchange Controls
U.S. Banks and Local Correspondent Banks
Project Financing
Web Resources
How Do I Get Paid (Methods of Payment)
Mozambique’s financial system provides for the most common methods of payment, including open account, letter of credit, cash in advance, documentary collections, etc. Standard and Poors’ and Fitch recently issued a credit ratings for the Mozambican government. There is an Information Credit Bureau at the Central Bank that provides information on collection agencies in country. Law firms also perform collection functions, for a fee.
How Does the Banking System Operate
The Banking System – The financial system of Mozambique reflects recent policies undertaken by the government and the Bank of Mozambique (Central Bank). In 1994 liberalization of interest rates was approved, and between 1996 and 1997 the government began to sell financial institutions to private buyers. The merger of two banks, the International Bank of Mozambique (BIM) and the Commercial Bank of Mozambique (BCM), was completed in 2001. The re-privatization of Banco Austral to ABSA, the purchase of BNP Nedbank by African Banking Corporation, the closing of Credicorp, and more recently, the merger of Commercial Bank of Mozambique (BCI) and Banco de Fomento have streamlined and created major changes for the banking sector.
Grupo BIM dominates the Mozambican banking system. Grupo BIM controls 48% of the loan market and 52% of the deposit market, and has as its majority shareholder the Portuguese Commercial Bank (BCP). The second major player is BCI-Fomento. Standard Bank, Banco Austral – ABSA, and the African Banking Corporation also offer financial services in Mozambique.
Commercial banks in Mozambique are best suited for providing short-term loans, trade-related finance, and fee-based services. Medium-term loans are available, but stiff collateral requirements and high interest rates deter many in the commercial sector. Long-term finance other than mortgage-based lending is not generally available. Leasing is an area of growing commercial bank interest. Many foreign companies find it advantageous to obtain offshore financing for their Mozambican operations. The range of services offered by domestic banks is limited, and innovation is not a hallmark of the sector.
Foreign Exchange Controls
Foreign Exchange Controls Affecting Trade – Foreign exchange is available to importers and exporters to finance current account transactions. An application to purchase the necessary foreign currency must be approved by the Bank of Mozambique before an exporter or importer may purchase foreign currency from commercial banks or exchange houses. Such applications are routinely approved by the Bank upon presentation of documents relating to the goods in question within 15 days. Applications can be approved prior to the goods’ arrival in Mozambique. Commercial banks and exchange houses may apply for authorization on behalf of their clients. Applications must include proof of the importer’s/exporter’s ability to finance the transaction. For advance payments in excess of USD 50,000, a performance guarantee from a banking institution may be required.
U.S. Banks and Local Correspondent Banks
Commercial Banks with Correspondent U.S. Banking Relationships:
Banco Austral ABSA
Avenida 25 de Setembro, 1184
Caixa Postal 757, Maputo
Tel: (258) (21) 32-10-11
Fax: (258) (21) 32-34-70
Banco Comercial e de Investimentos (BCI)-Fomento
Avenida 25 de Setembro, 1230 (4th Floor)
Caixa Postal 75, Maputo
Tel: (258) (21) 30-77-77
Fax: (258) (21) 30-71-52
Grupo de Banco Internacional De Moçambique (BIM)
Avenida Samora Machel, 247
Caixa Postal 2657, Maputo
Tel: (258) (21) 32-32-08
Fax: (258) (21) 32-93-89
Standard Bank
Praça 25 De Junho
Caixa Postal 1119, Maputo
Tel: (258) (21) 32-45-97
Fax: (258) (21) 30-81-04
União Comercial de Bancos
Avenida Friedrich Engels, 400
Maputo
Tel: (258) (21) 49-43-69
Fax: (258) (21) 49-86-75
African Banking Corporation
Prédio 33 Andares, 1230 Av. 25 de Setembro, 1˚ Andar
Caixa Postal 1445, Maputo
Tel: (258) (21) 30-67-00
Fax: (258) (21) 30-63-05
ULC – African Development Bank
Edifício 33 Andares, Rua de Imprensa 256, 7˚ Andar
Caixa Postal 4447 Maputo
Tel: (258) (21) 30-04-51
Fax: (258) (21) 43-12-90
U.S. Financial/Lending Institutions:
Chase Manhattan Overseas Corporation
Block G, Pin Mill Farm
164, Katherine Street, Sanddown
Sandton 2196
P.O. Box 651996, Benmore 2010
Republic of South Africa
Tel.: (27) (11) 444-1266
HSBC Equator
Prédio 33 Andares, Suite 522
Rua Da Imprensa, 256, Maputo
Tel: (258) (21) 43-19-19
Fax: (258) (21) 43-19-18
Citibank
Grosvenor Corner
195 Jan Smuts Avenue, Rosebank
P.O. Box 1800, Saxonwold, 2132
Johannesburg, South Africa
Tel.: (27) (11) 280-2200
Fax: (27) (11) 280-2795
E-Mail: karen.henwood@citibank.com
Locally or Regionally Based MDB and IFI Offices:
African Development Bank
5 Rue Jesse Owens
01 B.P. 1712 Abidjan 01, Cote d'Ivoire
Tel: (225) 21-46-16
Fax: (225) 22-24-37
E-mail: mherrlin@doc.gov
International Finance Corporation (IFC)
Avenida Kenneth Kaunda, 1224
Maputo
Tel: (258) (21) 49-28-41/51/71
Fax: (258) (21) 49-28-93
The International Bank for Reconstruction and Development (“World Bank”)
Avenida Kenneth Kaunda, 1224
Maputo
Tel: (258) (21) 49-28-41/51/71
Fax: (258) (21) 49-28-93
International Monetary Fund
Av. Ahmed Sekou Toure 133
Maputo
Tel: (258) (21) 49-61-18
Fax: (258) (21) 49-83-76
Project Financing
General Availability of Financing – Trade financing is readily available from Mozambican commercial banks. Medium-term project financing is more difficult and requires significant collateral. Long-term project financing is scarce. Venture capital in Mozambique is, at present, almost non-existent, although Grupo BIM may begin offering such in the near future.
Availability of GSM Credit Guarantees – The USDA provides GSM credit guarantees to assist in financing exports of U.S. agricultural products overseas. While no Mozambican banks are currently eligible for the program, eligible banks elsewhere in the region may be able to cover exports to Mozambique. Interested exporters are advised to contact the United States Department of Agriculture.
Export-Import Bank -- The Export-Import Bank of the United States (“Ex-Im”) offers loan guarantees, insurance, and project financing to encourage the export of American goods. Mozambique is eligible for short, medium, and long-term loans, loan guarantees, and insurance to finance private sector purchases of American goods. The Export-Import Bank has no pre-set financing limits. Additional information is available at
www.exim.gov.
OPIC -- The Overseas Private Investment Corporation is an independent U.S. government agency that can assist with project finance, through loans or loan guaranties, and political risk insurance in Mozambique, up to a total of $400 million for projects with American involvement. OPIC has also created venture capital funds based in Johannesburg including: The New Africa Growth and Opportunity Fund and the Modern Africa Growth and Investment Corporation. Additional information is available at
www.opic.gov.
MIGA -- Mozambique is a member of the Multilateral Investment Guarantee Agency (MIGA), part of The World Bank Group. MIGA offers investment guarantees for private sector projects.
IFC -- The International Finance Corporation (IFC) and the Commonwealth Development Corporation provide medium-term loans and equity finance in Mozambique from their South African offices.
Export-Import Bank of the United States: http://www.exim.gov
Country Limitation Schedule: http://www.exim.gov/tools/country/country_limits.html
OPIC: http://www.opic.gov
Trade and Development Agency: http://www.tda.gov/
SBA's Office of International Trade: http://www.sba.gov/oit/
USDA Commodity Credit Corporation: http://www.fsa.usda.gov/ccc/default.htm
U.S. Agency for International Development: http://www.usaid.gov
About the Embassy
Hours of Operation
Offices / Departments
Country Commercial Guide 2006
Latest Embassy News
