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Global Gateway: “Mozambique’s Mining Sector Needs to Reinvent Itself to Attract More Investment and Generate Job Opportunities” – CMM

Global Gateway: “Mozambique’s Mining Sector Needs to Reinvent Itself to Attract More Investment and Generate Job Opportunities” – CMM

The Mozambican mining sector has proved very attractive in recent times, with the discovery of various natural resources whose commercial value is high. With the arrival of large companies, development was expected in the short term, since valuable minerals such as ruby, graphite and heavy sands are being exploited and exported in northern Mozambique.

However, inequalities remain and poverty tends to increase, especially in the places where the international mining companies are located. These situations are allied to the lack of opportunities for young people native to those areas, the absence of clear protection policies, as well as the terrorism that has affected the province of Cabo Delgado since 2017.

The chairmans of the Mozambican Chamber of Mines (CMM), Geert Klok, said that the government must assume its role and create the conditions for a favourable environment that encourages businesses to value local content, so that young people are not exposed to poverty.

According to the source, the country needs to look at the big billion-dollar industries and try to get the best out of them, explaining that they “have invested a lot of money to create incentives and opportunities for young people to work and develop their economies”.

“Mining is very important, but there needs to be favourable legislation. The issue of security and easy access to work permits are extremely important, especially in the Mozambican context,” he said during the panel on “Energy Transition: The Role of Critical Raw Materials”, as part of the first edition of the Mozambique – European Union (EU) Global Gateway Investment Forum.

In general terms, Geert Klok said that Mozambique is currently considered one of the least favourable countries in which to invest in the mining sector, adding that the activity is largely supported by the exploitation of graphite, which is then exported to various countries in Europe and Asia.

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“It’s not that easy to set up a mining company in Mozambique, there are still a lot of constraints, which is why we haven’t received many investors. As for graphite, internally there is no market for this resource because we don’t manufacture electric vehicles, so we’re not ready to compete with other countries,” he emphasised.

With the theme “Creating Business Opportunities”, and taking place on 22 and 23 November with 14 discussion panels, the Global Gateway Forum is an event organised jointly by the Government of Mozambique, the EU Delegation and the Association of European Chambers of Commerce (EUROCAM), which brings together various stakeholders from the national and European public and private sectors, with the aim of exploring strategies for attracting quality investments, within the scope of the European Union’s Global Gateway Strategy, and boosting trade between Mozambique and the European market.

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