Foreign Direct Investment (FDI) fell by 10.8 per cent in the third quarter of 2024, reaching 947.9 million dollars (59.9 billion meticals). This drop interrupts the growth trend seen in the first six months of the year and reflects a slowdown in the inflow of foreign capital, according to data from the Bank of Mozambique, consulted this Thursday (9) by Diário Economico.
In the first quarter of 2024, FDI totalled 779.2 million dollars (49.2 billion meticals), registering a significant increase of 36.32% in the second quarter, when it reached 1 062.2 million dollars (67 billion meticals). However, the positive trend was reversed in the third quarter, with a reduction of 114.3 million dollars (7.2 billion meticals).
The extractive industry remained the main destination for FDI, absorbing 905.3 million dollars (57.2 billion meticals) in the third quarter, driven above all by natural gas, coal, rubies, sapphires and heavy sands projects. Despite this, sectors such as manufacturing and the production and distribution of electricity, gas and water recorded net outflows of 21.6 million dollars (1.3 billion meticals) and 4.6 million dollars (290 million meticals) respectively, showing a retraction in these segments.
Agriculture also attracted little investment, totalling 6 million dollars (379.2 million meticals), while tourism, represented by the accommodation and catering sector, saw a modest inflow of 2.2 million dollars (139 million meticals).
‘The extractive industry remained the main destination for FDI, absorbing 905.3 million dollars (57.2 billion meticals) in the third quarter, driven above all by natural gas, coal, rubies, sapphires and heavy sands projects’
The distribution of FDI revealed a strong concentration in megaprojects, which attracted 735.2 million dollars (47 billion meticals) in the third quarter, while the remaining companies received only 88.6 million dollars (5.7 billion meticals).
Supplies and trade credits accounted for the largest share of foreign capital, totalling 823.8 million dollars (52.6 billion meticals), while shares and holdings totalled 124.1 million dollars (7.9 billion meticals). A relevant statistic for the period is the absence of reinvested profits, which indicates that foreign companies did not invest their earnings in the country. Diário Económico will continue to follow the evolution of foreign investment and its impact on the national economy.
Text: Felisberto Ruco
