For this year, the Government estimates that Foreign Direct Investment (FDI) could grow by more than 40%, equivalent to 5 billion dollars. The forecast is contained in the proposal for the Economic and Social Plan and State Budget (PESOE) for 2025, which was debated on Monday, 5 May, in Parliament.
According to the document prepared by the Executive of Daniel Chapo, who took office in January, FDI growth will be ‘influenced by the implementation of structural projects in the Rovuma basin’ in Cabo Delgado province, which include the resumption of construction of the TotalEnergies unit and the second Eni platform.
Recently, the Bank of Mozambique (BoM) revealed that Foreign Direct Investment in Mozambique stood at US$3.5 billion (221.2 billion meticals) in 2024, a growth of 41.5% compared to US$2.5 billion (158 billion meticals) in 2023. The central bank also recalled that in 2022, FDI stood at US$2.4 billion, with the highest figure reported in 2021, when the figures reached US$5.1 billion.
The financial institution explained at the time that the growth in FDI reflects the growing confidence of international investors in Mozambique, who see the country as a strategic hub for major investments in the energy sector in Southern Africa. ‘Investments by large multinationals are a reflection of the country’s growing importance as an energy hub in the region.’
Previously, the government estimated that FDI in the country would double by 2024, driven by liquefied natural gas (LNG) exploration businesses. In the supporting documents for the 2024 PESOE, the Executive pointed out that FDI would increase to US$4.7 billion, a figure that was not reached.
Approved last week by the Government, meeting in another session of the Council of Ministers, the draft law on the Economic and Social Plan and State Budget for 2025 is budgeted at 512.7 billion meticals (7.9 billion dollars).
Among the main macroeconomic assumptions underlying the 2025 PESOE is GDP growth of 2.9% and an average annual inflation rate of around 7%. The outlook also points to revenues of 385.8 billion meticals (5.9 billion dollars).
The PESOE is a document that defines the main economic and social objectives and financial policy of the State, as well as identifying the forecast revenue to be collected, the actions and resources necessary for its implementation.
