Foreign direct investment (FDI) in Mozambique in the first half of this year was up 48% from the same period last year, to around $1.841 billion (€1.748 billion), according to data from the central bank.
According to data from the Bank of Mozambique’s balance of payments report, this growth, from $1.244 billion (€1.181 billion) in the first six months of 2023, is explained “by the 35.6% increase in FDI from Major Projects,” the relevant document states.
“Of particular note is the 26.0% increase in capital inflows from the extractive industry, which accounted for 83.9% of total FDI in the period under review,” it adds.
More than 28% of the FDI invested in Mozambique from January to June came from South Africa, followed by the Netherlands with 27.5% and Mauritius with 26.4%.
The extractive industry maintained its position as the largest recipient of investment flows, with a total of $1.544 billion (€1.465 billion) in the first six months of the year. Of this, 72% was “absorbed by the oil and gas sector, [whose FDI] in annual terms grew by 34.0%” to $823.4 million (€781.7 million).
The coal mining sub-sector recorded an annual increase of 5.1%, totalling $373.2 million (€354.3 million) in FDI up to June, while the manufacturing industry, which recorded $115.5 million (€109.6 million) in FDI, accounted for 6.3% of the total.
FDI in Mozambique had already grown by 2% in 2023, compared to the previous year, to just over $2.509 billion (€2.383 billion), according to central bank data previously reported by Lusa.
This performance compares with $2.458 million (€2.334 billion) in 2022, but is still far from the peak recorded in 2021, with investments in the area of natural gas production, which caused FDI in Mozambique to soar that year to almost $5.102 billion (€4.845 billion).
In 2023, the Major Projects category – essentially natural gas extraction and processing – accounted for $2.087 billion (€1.982 billion) in FDI in the form of capital.
Even so, FDI performance in 2023 was above the government’s projection of $1.425 billion (€1.353 billion).
The government estimates that FDI in the country should double this year, driven by the natural gas exploration business.
In the documents supporting the Economic and Social Plan of the State Budget (PESOE) for 2024, the government points to an increase in FDI to $4.778 billion (€4.538 billion).
The government expects the country’s gross domestic product to grow by 5.5% in 2024, to 1.536 trillion meticais (€22.830 billion).
Lusa
