Mozambique’s trade balance shifts in early 2024

MOZAMBIQUE – Mozambique saw a notable shift in its trade dynamics in the first quarter of 2024, with India emerging as the top destination for its exports.

According to a report from the Bank of Mozambique, India’s purchases of Mozambican goods amounted to USD 331 million, making up 18.8% of all Mozambican exports during this period.

The primary export products to India included natural gas and coal, which have consistently been significant for Mozambique. Additionally, the report highlights exports of beans and cashew nuts to the Indian market.

South Africa followed as the second-largest importer of Mozambican goods, with purchases totaling USD 298.5 million representing 16.9% of Mozambique’s total exports.

This figure shows a slight increase from 16.3% in the same period of 2023. South Africa focused its imports on electricity, natural gas, coal, and bananas from Mozambique.

South Korea emerged as the third-largest market for Mozambican exports, with a substantial increase of over 100% compared to the previous year. South Korea’s imports reached USD 202 million, driven primarily by coal and natural gas.

China also saw a significant rise in its imports from Mozambique, increasing by 79.1% to USD 197 million. This growth is attributed to imports of natural gas, heavy sands, natural sands, and coal.

Changes in import patterns

On the import side, South Africa remained the largest supplier to Mozambique, with exports valued at USD 481 million, accounting for 23.2% of Mozambique’s total imports. The major items imported from South Africa included electricity, vehicles, corn, electrical appliances, and iron bars.

China’s exports to Mozambique also increased by 21.4% year-on-year, reaching USD 361.3 million. Key imports from China included tractors, ships, boats, pesticides, seeds, fruits, and agricultural materials.

In contrast, imports from the United Arab Emirates saw a significant drop of 37.9%, totaling USD 163 million.

This decline was mainly due to reduced imports of fuels, agricultural materials, soybeans, and oils. India’s exports to Mozambique also decreased slightly by 1.9% to USD 150.7 million, with major items being fuels, rice, and medicines.

The total value of Mozambique’s imports for the first quarter of 2024 was USD 2.02 billion, reflecting a 2.5% decrease from the same period in 2023.

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