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Markets & Finance: EU and Mozambique Seek to Take Partnership to the “Next Level”

Markets & Finance: EU and Mozambique Seek to Take Partnership to the “Next Level”

Four agreements worth a total of €178 million will support the energy transition, digital inclusion, sustainable agriculture, and human capital development under the Global Gateway strategy. The European Union is deepening its commitment to Mozambique, positioning the country as a strategic partner in Africa.

Mozambique and the European Union (EU) have reinforced their political and economic ties with the signing of four agreements worth a combined €178 million to support the country’s energy transition, digital inclusion, sustainable agriculture, and human capital development. The package was unveiled at the Mozambique–EU Business Forum as part of the Global Gateway strategy, through which Brussels aims to mobilise public and private investment for resilient, sustainable, and high-quality infrastructure.

The newly signed agreements are divided across four priority areas. Clean energy will receive €40 million to expand access to electricity; digital transformation has been allocated €28 million, with a particular focus on increasing women’s participation in the digital economy; €60 million will support agricultural businesses and sustainable value chains; while €50 million has been earmarked for education and skills development to prepare Mozambican students for a digital and sustainable economy.

The forum’s opening ceremony, held on 9 June, was chaired by President Daniel Chapo, who delivered a clear message to European partners: Mozambique is seeking investment—but not solely in extractive industries. The Head of State called for a partnership capable of transforming natural resources, creating jobs, developing skills, and integrating the country into global value chains with greater local value addition.

Mozambique’s strategic location, with access to the sea, three major ports, and regional development corridors, was presented as a key competitive advantage.

“The European Union remains one of the Republic of Mozambique’s principal economic and trade partners,” Chapo said, highlighting Europe’s role in investment, trade, and development financing. However, he stressed that the relationship has entered a new phase, with the Government aiming to elevate cooperation to “a new level” based on joint value creation rather than the simple extraction and export of raw materials.

Strengthening Local Value Addition

The message comes at a time when Mozambique is seeking to increase the domestic processing of its natural resources, particularly in the mining sector, where new legislation encourages greater local beneficiation and reduced exports of raw materials. For the Government, this strategy is closely linked to industrialisation, economic diversification, and job creation, especially for young people and women.

Daniel Chapo described Mozambique as being at a “decisive moment” in its economic trajectory, arguing that the country’s international image should be judged less by its past and more by the pace of its ongoing reforms. Among the Government’s priorities are macroeconomic stability, stronger public finances, greater legal certainty, improved business transparency, and accelerated structural reforms.

The President expressed hope that the partnership with the EU would help translate commitments into tangible outcomes—reducing the gap between announcements, funding disbursements, project implementation, and real impact on the ground.

Chapo stressed that the true value of investment is measured not at the moment it is approved, but by how quickly it results in factories, services, jobs, exports, and higher incomes for Mozambican families.

A Partnership with Room to Grow

From the European perspective, the Global Gateway strategy was presented as the cornerstone of future cooperation. Gonçalo Matias, Portugal’s Minister for State Reform, representing the EU, described the initiative as a commitment “to invest in resilient, sustainable and high-quality infrastructure, connecting people, economies and opportunities.”

Myriam Ferran, Deputy Director-General at the European Commission’s Directorate-General for International Partnerships, emphasised Brussels’ commitment to mobilising investment.

“We provide public financing, guarantees, blended finance instruments and technical assistance, using them to reduce the risks of projects that the private sector can implement at scale,” she said.

Despite the political significance of the relationship, investment figures indicate considerable room for expansion. According to Mozambique’s Agency for Investment and Export Promotion (APIEX), the country attracted US$94 million in EU investment between 2021 and 2025. During the same period, approximately US$18 billion in total investment projects were approved. However, the EU figure excludes investments in the oil, gas, and mining sectors.

APIEX is seeking stronger European business participation in sectors such as fisheries, aquaculture, agribusiness, information and communication technologies (ICT), tourism, transport, and logistics. Mozambique’s geographical position—with access to the Indian Ocean, three major ports, and regional development corridors—was highlighted as a strategic advantage for serving markets across Southern Africa and Asia.

From Commitments to Results

The success of this new phase of cooperation will ultimately depend on implementation. While the €178 million package provides substantial financial backing, its impact will be measured by its ability to reach communities, businesses, and young people seeking employment.

The partnership is therefore entering a stage in which economic diplomacy must be accompanied by measurable results: broader access to electricity, stronger skills, more productive businesses, higher value-added exports, and greater trust between the State, investors, and society.

See Also

Mozambique’s official strategy seeks to balance three objectives: attracting investment, improving predictability for investors, and ensuring that projects generate tangible local value. For its part, the European Union is positioning itself as a strategic partner at a time of intensifying global competition for energy resources, critical raw materials, logistics corridors, and economic influence across Africa.

Text: Editorial Staff • Photo: Courtesy

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