The Mozambican economy has been growing dynamically in recent times, driven by the implementation of reforms as part of the approval in August 2022 of the Package of Economic Acceleration Measures (EAP), which has led to a recovery in business performance and in the macroeconomic environment index.
Even with this progress, there are still challenges related to interest rates which, according to some entrepreneurs, are still above target, jeopardising the financing of Small and Medium-sized Enterprises (SMEs), not to mention the situation of insecurity in the northern province of Cabo Delgado.
However, despite the adverse context, Mozambican President Filipe Nyusi revealed that in 2023 the country received 139 billion meticals (2.2 billion dollars) in investment intentions, attesting to the ‘good performance’ in the face of ‘competition’ from other countries.
‘The country received 2.2 billion dollars in terms of investment intentions, 44 per cent more than in 2022. This is proof of the good moment Mozambique is going through compared to other countries,’ he said.
Speaking during the opening ceremony of the 19th Annual Private Sector Conference (CASP), which is taking place in Maputo City, the statesman emphasised that ‘in order to achieve this positive dynamic, public investment in infrastructures that contribute to sectoral competitiveness was crucial’.
According to the head of state, the energy sector has gained the most prominence and visibility in recent years, emphasising that there has been an increase in electricity generation, expansion of the network and improvement in transmission quality, including diversification of sources, as well as universal access.
Making a brief assessment, the leader highlighted as ‘one of the most structuring measures’ of the current government the implementation of the Loan Guarantee Fund, worth 4.4 billion meticals, with the aim of facilitating access to bank credit for SMEs.
‘This measure comes at a good time, with inflation contained in single digits and after two rounds of relaxation of the MIMO [interest rate] reference rate by the monetary authorities. This Fund will help to reduce the credit risk premium and, consequently, the cost of financing,’ he emphasised.
‘On the other hand, it will help extend maturities to accommodate investment needs and fixed assets, such as equipment and buildings, which favour the creation of new companies and the expansion of existing units,’ he stressed.
Also in his speech, Filipe Nyusi said that entrepreneurs should start ‘thinking big’, clarifying that the country should invest in the local processing of raw materials, in order to reduce imports.
‘The country has received 2.2 billion dollars in investment intentions, 44 per cent more than in 2022. This proves that Mozambique is going through a good period compared to other countries’
Filipe Nyusi
This edition of CASP, organised by the Confederation of Economic Associations (CTA) in partnership with the government, aims to reflect ‘on the progress and challenges of the Package of Economic Acceleration Measures and to debate the conditions of the business environment in order to make the country more competitive’. Projects valued at 75.8 billion meticals (1.7 billion dollars) will also be discussed.
Taking place under the theme ‘Investments and Business in the Environment of Economic Acceleration Measures: Challenges and Opportunities’, the three-day event (15, 16 and 17 May) will include 80 foreign businesspeople, more than 4,000 face-to-face participants and 20,000 virtual participants.
According to a CTA press release, there are also more than 40 national and foreign speakers and delegations from more than 12 countries, such as Mauritius, South Africa, Angola, Brazil, Portugal, the Netherlands, France, Italy and Zimbabwe, among others.
