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Introduction
This article aims to provide a brief explanation of the commercial interest rate within the framework of Decree-Law No. 3/2022 of 25 May, which approved the “new” Legal Regime of Commercial Contracts (hereinafter referred to as RJCC).
This article does not address interest rates applicable to bank credit, that is, loans granted by licensed credit institutions and financial entities whose corporate purpose includes the granting of credit (for example, banks).
What is Interest?
Interest is most discussed in the context of a loan of money (interest-bearing loan agreements). In simple terms, interest is the financial compensation for the use of money over a given period — this is referred to as remunerative interest.
For example, DRM Limpezas lends 1,000,000.00 MZN to DRM Lavandarias for repayment within one year, subject to interest at 10%. In that case, the remuneration for the use of the money amounts to 100,000.00 MZN (corresponding to 10% interest).
However, the concept of interest is not limited to this. Interest may also refer to the sanction applied to a debtor for failure to comply with a pecuniary obligation (an obligation to pay money or its equivalent). In this case, it is referred to as default interest or interest for late payment.
Thus, if on the agreed date DRM Lavandarias fails to pay DRM Limpezas, default interest will accrue in addition to any remunerative interest.
When is Interest Commercial?
Interest is considered commercial when the underlying contractual relationship arises from a commercial contract or any act of commerce. For example, the interest agreed between DRM Limpezas and DRM Lavandarias is commercial in nature.
What is the Interest Rate in Commercial Contracts?
The parties may agree in writing on a specific interest rate. However, in the absence of a written agreement, the applicable commercial interest rate corresponds to the Prime Rate of the Mozambican Financial System (PRSFM).
The Prime Rate of the Mozambican Financial System is the single reference rate for variable interest rate credit operations within the Mozambican financial system. It is composed of the sum of the Single Index and the Cost Premium. This is a technical concept with a certain degree of complexity.
It is not necessary to understand the Prime Rate in detail. Its determination is not a matter for individuals. The rate is established with the involvement of the Bank of Mozambique and the Mozambican Bankers Association.
Once determined, the Prime Rate must be published by the 21st day of each month and becomes effective on the 1st day of the following month.
The websites of the Bank of Mozambique and the Mozambican Bankers Association are the most reliable sources for up-to-date information on the Prime Rate.
For example, for the month of February 2026, the Prime Rate in force is 15.70%. This means that the commercial interest rate applicable in February is 15.70%, unless the parties have agreed in writing on a different rate. For subsequent months, the rate may remain unchanged or may vary.
What is the Commercial Default Interest Rate?
In the event of non-compliance with a pecuniary obligation, the debtor is required to pay the applicable commercial interest (Prime Rate), plus a statutory surcharge of 2 percentage points (2 p.p.) as default interest.
Accordingly, where no prior agreement exists regarding remunerative or default interest, the applicable annual rate will be 17.70%, corresponding to the Prime Rate plus the statutory surcharge of 2 percentage points.
To illustrate the operation of default interest, let us return to the example of the commercial loan agreement between DRM Limpezas and DRM Lavandarias. If the outstanding amount (1,000,000.00 MZN) was due on 31 January and was not paid, from 1 February onward interest accrues at the commercial rate in force, increased by 2 percentage points.
Assuming that in February 2026 the Prime Rate is 15.70%, the applicable annual rate in case of default will be 17.70% (15.70% + 2 p.p.). If the delay were to last for a full year, the interest would amount to 177,000.00 MZN. However, if the delay is shorter than one year, interest will be calculated proportionally to the number of days in default.
Thus, the indicated rate (15.70% plus 2 percentage points) is a nominal annual rate. The actual amount payable depends on the effective duration of the delay, and interest is calculated proportionally to the number of days of default.
In Which Situations Does the Commercial Interest Rate Apply?
The statutory commercial interest rate applies, as a rule, whenever:
In such cases, the applicable rate is the Prime Rate of the Mozambican Financial System, which is a nominal annual rate accumulated on a daily basis.
Let us consider two main situations:
(a) Commercial Loan
A commercial loan occurs when one company (lender) delivers money or fungible goods (goods replaceable by equivalent goods) to another company (borrower), subject to a future obligation of restitution.
If the parties do not stipulate an interest rate:
Example 1 – Remunerative Interest
Suppose Company A lends 1,000,000.00 MZN to Company B for 90 days, without agreeing on an interest rate. If the Prime Rate in force is 15.70% per annum, interest will be calculated proportionally for 90 days, as the rate is annual but accrues daily.
Accordingly, interest corresponds to 1,000,000.00 MZN multiplied by 15.70%, adjusted to the fraction of 90/360 days, resulting in approximately 39,250.00 MZN. This amount represents remunerative interest for the use of the capital during the agreed period.
Example 2 — Default Interest
If Company B fails to repay the capital after 90 days, it falls into default. The annual rate then becomes 17.70% (15.70% + 2 p.p.).
If the delay lasts 30 days, default interest corresponds to 1,000,000.00 MZN multiplied by 17.70%, adjusted to 30/360 days, resulting in approximately 14,750.00 MZN.
Only if the delay lasted a full year would the amount equal the total annual rate applied to the capital.
The Prime Rate functions as a legal ceiling for the stipulation of interest in commercial loan agreements.
(b) Restitution of Undue Payment
The commercial interest rate also applies where one company must return money unduly received from another.
The starting point for interest depends on whether the debtor acted in good faith or bad faith.
Example 3 — Undue Payment in Good Faith
If a company mistakenly makes a duplicate payment of 500,000.00 MZN, and the supplier received it in good faith, interest is only due if the supplier fails to refund the amount after being requested to do so.
If repayment occurs 60 days after formal notice, interest calculated at 15.70% per annum will amount to approximately 13,083.00 MZN.
Example 4 — Undue Payment in Bad Faith
If the supplier acted in bad faith, knowing the payment was undue, interest accrues from the date of receipt.
If 500,000.00 MZN remains unduly retained for 120 days, interest calculated at 15.70% per annum, adjusted to 120/360 days, will amount to approximately 26,167.00 MZN.
Conclusion
In summary, the Legal Regime of Commercial Contracts establishes a clear criterion for determining the commercial interest rate, adopting the Prime Rate of the Mozambican Financial System as its reference.
This rate is a nominal annual rate, published monthly, and applies by default whenever the parties do not fix a specific rate in writing. Interest accrues daily and is calculated proportionally to the number of days of use of the capital or of default.
In case of non-compliance with commercial pecuniary obligations, the applicable rate is increased by a statutory surcharge of 2 percentage points, without prejudice to the right to claim additional damages.
Proper understanding of the annual nature of the rate and its daily accrual mechanism is essential to avoid common misconceptions, particularly the mistaken assumption that the published percentage automatically corresponds to the total amount due.
In the absence of a different contractual stipulation within legal limits, the Prime Rate serves as an objective and uniform reference parameter for commercial relations in Mozambique, promoting predictability and legal certainty in commercial transactions.
References
Decree-Law No. 3/2022, of 25 May. Approves the Legal Regime of Commercial Contracts.
Civil Code. Approved by Decree-Law No. 47 344, of 25 November 1966, as applicable in Mozambique.
Bank of Mozambique. Notices and publications relating to the Prime Rate of the Mozambican Financial System.
Mozambican Bankers Association. Monthly publications on the Prime Rate of the Mozambican Financial System.
Bank of Mozambique and Mozambican Bankers Association. Methodology for determining and publishing the Prime Rate of the Mozambican Financial System.
