Elaine Wilson
Divisional Director Research
Cushman & Wakefield Broll
Economy Overview
Effective 1 April, a one-month State of Emergency was declared in Mozambique with the implementation of travel bans and boarder closures. The restrictions imposed by the Government have been minimal, mainly affect the trading hours of city markets, informal retailers, street vendors and bars. Alongside the COVID-19 crisis is the decrease in oil prices, affecting the main drivers of the Mozambican economy. Although there is uncertainty of how COVID-19 will evolve in Mozambique, a high contamination rate of the population is expected, reducing business confidence in the economy.
Retail Overview
Most of the formal retail, which is not very extensive in Mozambique, is temporarily closed with the exception of supermarkets, pharmacies and banks. Supermarkets are experiencing difficulties with importing products due to border closures, limiting stock levels. The municipal and informal markets have limited trading hours from 06H00 to 17h00 while street vendors have been encouraged to leave their places of sale.
Industrial Overview
With the closures of borders, the industrial sector, more so the ports, have been negatively impacted with limited logistic operations. Due to the regulations imposed by the Government, regarding the rotation of staff shifts, the output and demand for goods such as cement has decreased.
Office Overview
All ongoing transactions in the commercial property industry have been postponed until the lockdown has been lifted. With most tenants working from home, maintenance has been reduced to essential levels in operating business towers.
