The Bank of Mozambique (BoM) said that Foreign Direct Investment (FDI) in Mozambique would stand at 3.5 billion dollars (221.2 billion meticals) in 2024, an increase of 41.5 per cent compared to the 2.5 billion dollars (158 billion meticals) recorded in 2023.
According to the central bank’s statistical report, in 2022 FDI stood at 2.4 billion dollars, with the highest figure reported in 2021, when the figure reached 5.1 billion dollars.
The growth in FDI reflects the growing confidence of international investors in Mozambique, who see the country as a strategic centre for major investments in the southern African energy sector. The Bank of Mozambique emphasises that ‘investments by large multinationals are a reflection of its growing importance as an energy hub in the region.’
In addition to the impact on major energy projects, the report emphasises that the majority of resources have been directed towards infrastructure and other sectors linked to natural resources. ‘This investment has contributed to improving infrastructure development in the country, with a positive impact on local communities, creating jobs and boosting economic growth.’
The impact of increased FDI is also reflected in job creation and improved living conditions in the areas affected by major projects. ‘The development of infrastructure associated with these investments has led to the creation of jobs and an increase in living standards in various regions,’ the report emphasises.
However, the financial institution also warns of the challenges the country still faces, such as the need to guarantee a safe and stable environment for investors. ‘Although the indicators show a positive trend, it is essential that the country continues to guarantee political stability and security, so that investment flows are not jeopardised,’ concludes the document.
Previously, the government estimated that FDI in the country should double by 2024, driven by the liquefied natural gas (LNG) exploration business taking place in the Rovuma basin, in Cabo Delgado province, northern Mozambique.
In the supporting documents for last year’s Economic and Social Plan of the State Budget (PESOE), the Executive indicated that FDI would grow to 4.7 billion dollars, an amount that was not realised.
