- Pension fund deposits dropped from MZN 13.11 billion in 2023 to MZN 3.34 billion in 2024
By Noémia Mendes
Maputo (MOZTIMES) – The Council of Ministers has approved a decree that establishes a regime for the forgiveness of fines and reduction of interest on arrears for all contributors and self-employed workers registered with the Mandatory Social Security System who are in default of their contributions.
According to the statement released on Tuesday, the measure aims to ease accumulated debt and encourage voluntary regularisation with the National Institute of Social Security (INSS).
The decree applies to all defaulting contributors, except for those who joined previous forgiveness and interest reduction regimes but failed to comply with the agreed terms.
The Financial Stability Report published by the Bank of Mozambique on 30 June indicates a sharp drop in pension fund deposits. As of 31 December 2024, deposits totalled approximately MZN 3.34 billion, involving 17 complementary pension funds and two mandatory social security institutes. This figure represents a 74.53% decrease compared to the MZN 13.11 billion recorded at the end of 2023.
The fall in deposits reflects a lower exposure of pension fund assets to credit institutions, possibly due to a preference for alternative investments over bank deposits. Consequently, the share of pension fund deposits in the overall banking system dropped to 0.47% in 2024, compared to 2.06% the previous year. (NM)
