Industrialisation is one of the fundamental pillars for the sustainable development of any country, and in Mozambique this reality could not be any different. The country has vast natural resources – from minerals such as coal and natural gas to agricultural and forestry raw materials. However, over the years we have been faced with a scenario where around 90 per cent of the export of our wealth occurs in its raw state, which demonstrates our limited capacity to transform national potential into lasting benefits for the economy and society. For Mozambique to truly grow and prosper, it is imperative to invest strategically in industrialisation, promoting the transformation of our raw materials locally, adding value and generating more jobs and income.
The crucial question is: how do we start this process? How can Mozambique be transformed from a country that exports raw materials into a centre for transformation and industrialisation?
Investment and infrastructure
The first answer that springs to mind is investment. But not just any kind of investment. What Mozambique needs is strategic investment that looks to the long term and considers the infrastructure needed to support a robust industry. At present, our infrastructure is still a challenge, with roads, harbours and electricity grids that do not satisfactorily meet the demands of a growing industrial sector. Modernising roads and building new internal transport routes are essential to connect production centres with export points and, above all, to facilitate transport within the country for domestic consumption.
Energy supply is another crucial point. Although Mozambique has one of the largest hydroelectric dams in Africa, we still face problems with the efficient distribution of energy, especially in rural areas where, according to World Bank data, coverage is limited to around 34 per cent of the population, and many industries could spring up. The creation of a robust and accessible energy system that serves both large industries and small and medium-sized businesses will be decisive in boosting industrialisation. Note that, at the regional level, according to a comparison made by Malawi’s energy regulator, our electricity cost is the most expensive
Training the labour force
Another fundamental element for the success of industrialisation is human capital. Mozambique has a young population (around 45 per cent of the population), which in itself is an important asset. However, according to UNICEF data, only 30 per cent of school-age young people are enrolled in educational institutions. This potential needs to be developed through training and technical education. Investment in education, especially in areas such as engineering, technology and industrial management, will be decisive in ensuring that we have professionals trained to operate and manage complex industries. The creation of technical training institutions and the expansion of vocational education programmes will have a major impact in the medium and long term.
One model that could be successfully adopted is public-private partnerships to build specialised technical schools in key sectors, such as the processing of agricultural, mineral and energy products
One model that could be successfully adopted is public-private partnerships for the construction of specialised technical schools in key sectors, such as the processing of agricultural, mineral and energy products. This will allow us to add value to these products by processing them locally and creating a wider value chain, rather than just exporting raw materials.
Government incentive policies
In addition to investment in infrastructure and labour training, government policies play a central role in this process. The World Bank’s infamous Doing Business ranking, which placed the country in 138th position (out of 190 countries), illustrates the main areas of focus where the Mozambican government can implement reforms that attract investors, both domestic and foreign, to strategic sectors of industry. A good example would be the creation of special economic zones where companies could set up with favourable tax conditions and easy access to quality infrastructure.
Another important incentive would be to reduce bureaucracy for setting up companies and facilitate access to credit, especially for local entrepreneurs, at interest rates compatible with the economic reality of these ventures. Mozambique has great potential in terms of entrepreneurship, but this potential is often stifled by bureaucratic barriers and a lack of financial support. A reform along these lines would have a profound impact on the country’s ability to develop its own industries, without relying exclusively on foreign investors.
Focus on strategic industries
Looking at the international panorama, it is clear that the countries that have prospered most industrially have been those that have focused on strategic industries, choosing sectors where they could stand out globally. Mozambique has the opportunity to follow this path, focussing initially on sectors where we already have a comparative advantage. The agricultural processing industry is a clear example, given that we have vast arable land and considerable potential in the production of food and agricultural products for export.
Another promising sector is mining and energy. Instead of simply exporting coal, gas and other minerals in their raw state, we could invest in industries that transform these resources, creating higher value-added products. Fertiliser production, fuel refining and mineral processing are areas that, with the right investment, could position Mozambique as an industrial leader in the southern African region.
The most recent example is the proposal to introduce biodiesel blends in diesel, which opens up space for the establishment of a production, processing, blending and distribution industry, generating jobs and investment. As part of this initiative, last June we accompanied a delegation from the Ministry of Finance to Brazil to take part in a specific forum on biofuel, which contributed to a better understanding of the issue.
Conclusion
Mozambique’s industrialisation is not just a distant dream, it is possible. The country has the resources, the manpower and the strategic location to become a centre for processing raw materials. With well-targeted investments in infrastructure, workforce training and the consolidation of a favourable environment for industrial development, Mozambique has everything it takes to persevere.
I believe that it is not up to the government to create industry or jobs. It should only create the instruments and remove the obstacles that promote or restrict, respectively, the initiative of private capital, which is increasingly mobile and global.
It is up to us, as Mozambicans, whether from the ground up or from the heart, to embrace this vision of development and work together to transform our natural wealth into lasting opportunities for future generations. The time to act is now so that, in the future, we can look back and see Mozambique as a nation not just rich in resources, but rich in industrial capacity, innovation and prosperity.
