Africa-Press – Cape verde. Foreign Direct Investment (FDI) in Mozambique grew 2% in 2023, compared to the previous year, to just over 2,509 million dollars (2,313 million euros), according to central bank data compiled by Lusa.
This performance compares with the 2,458 million dollars (2,266 million euros) in 2022, but is still far from the peak recorded in 2021, with investments in the area of natural gas production, which caused FDI in Mozambique to soar that year to almost 5,102 million dollars (4,704 million euros).
In 2023, the “large projects” category guaranteed 2,087 million dollars (1,924 million euros) in FDI, in the form of capital.
Even so, FDI performance in 2023 was above the Government’s projection, which was 1,425 million dollars (1,314 million euros).
The Mozambican Government estimates that FDI in the country is expected to double in 2024, driven by natural gas exploration businesses.
In documents supporting the Economic and Social Plan of the State Budget (PESOE) for 2024, the Government points to an increase in FDI to 4,778 million dollars (4,405 million euros).
“With regard to FDI for 2024, an improvement is expected, mainly influenced by the resumption of TotalEnergies’ investments in the Rovuma Basin”, reads the report.
In the PESOE report for 2024, the Government estimates a “remarkable increase in imports of specialized services by large projects” underway in the country, in addition to the “resumption of operations by TotalEnergies”, a French multinational project in Cabo Delgado, evaluated by more than 20 billion dollars (18,440 million euros) and suspended since the beginning of the terrorist attacks in that northern province of the country.
It also expects the expansion of “production plants for other projects, such as Montepuez Ruby Minning, HCB [Hidroelectric de Cahora Bassa] and Coral North FLNG”, which could require “a considerable increase in imports of goods and services, which could exceed the expected increase in exports, with the start of natural gas exploration.
The Mozambican Government expects the country’s Gross Domestic Product (GDP) to grow 5.5% in 2024, to 1.536 billion meticais (more than 22,180 million euros).
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