Africa-Press – Mozambique. Foreign direct investment (FDI) in Mozambique fell 66.8% in the first quarter of 2023, compared to 2022, to US$460.1 million (€417.3 million), with South Africa the primary cause, according to central bank data consulted by Lusa on Tuesday.
The reduction of 67.8% in terms of the so-called ‘Large Projects’, and of 54. 3% in ‘traditional economy companies’ contributed to the fall in FDI in the country, the Bank of Mozambique statistical report on the balance of payments in the first quarter of 2023 states.
In the first quarter of 2022, Mozambique had raised over US$1,386 million (€1,270 million) in foreign investment, with the start-up of gas production projects.
South Africa continues to lead among the countries of origin of FDI in Mozambique, with a total weight of 39.1% in the investment carried out in the first quarter, followed by Mauritius (34.3%), the Netherlands (17.2 %) and the United Arab Emirates (8.9%).
In terms of sectoral distribution, the extractive industry maintained its position as the largest recipient of FDI flows, bringing in US$421.2 million (€382.1 million) in the first quarter, equivalent to 91.6% of total.
“From which [total] stand out resources destined to the financing of gas exploitation operations” with US$298.3 million (€270.6 million), the remainder being “distributed among the areas of exploitation of mineral coal, heavy sands and others”, the central bank explains.
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