Maputo — Mozambique's exports fell in value by 36 per cent in the first quarter of this year, compared with the same period in 2008, according to the latest statistics from the Bank of Mozambique.

This was not much of a surprise. Mozambican exports are dominated by just one company, the MOZAL aluminium smelter, on the outskirts of Maputo, and the aluminium price has tumbled in world markets, a victim of the recession in Europe and north America.

Earnings from aluminium were 330.7 million UIS dollars in the first quarter of 2008, but only 182 million dollars in January to March this year - a decline of 45 per cent. This is the main reason why total exports over the period fell from 543.1 to 347.6 million dollars.

Exports of natural gas also slumped, from 60.9 to 33.7 million dollars. But, with the Cahora Bassa dam operating at almost full capacity, exports of electricity, jumped from 52.4 to 60.9 million dollars. There was a slight rise in exports of the titanium ore, Ilmenite, from 4.2 to 4.5 million dollars.

Most of the country's agricultural exports showed a decline - cotton from 15 to 7.4 million dollars, cashew nuts from 12.1 to 5.4 million dollars, tobacco from 6.8 to four million, and timber from 6.8 to four million. No figures are available for sugar, since none was exported in the first quarter of either year.

Despite the international financial crisis, Mozambique continues to show a healthy growth in its GDP. Contrary to predictions that growth would slow down to around four per cent a year, the figures for the first quarter show a five per cent annual growth rate, which is not far below the 5.2 per cent registered in the first quarter of 2008.

The central bank is also pleased that the commercial banks are responding to the repeated appeals to open branches in the rural districts. The total number of bank branches rose from 275 in December 1007 to 364 in May 2009.

Although there is still a heavy concentration of banks in Maputo, Matola and (to a lesser extent) Beira, the number of districts with at least one bank rose over this period from 33 to 49. That means, however, that there are still 79 districts where no commercial bank is yet operating.

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