Africa-Press – Mozambique. Mozambique’s President Filipe Nyusi said on Wednesday that despite the “adverse context”, the country received $2.2 billion (€2.031 billion) in investment intentions in 2023, attesting to the “good momentum” in the face of “competition” from other countries.
The head of state emphasised that this performance comes despite interest rates, which remain “well above the target set at 2%”, damaging the “financing of emerging economies”.
“However, despite this adverse context, our country received $2.2bn in terms of investment intentions from the real sector in 2023, 44% more than in 2022. This is a reality that attests to the good momentum the country is going through in the face of competition between various countries in terms of attracting foreign savings,” he said in his opening speech at the 19th Annual Private Sector Conference (CASP), which brings together dozens of national and foreign businesspeople in Maputo until Friday.
“In order to achieve this dynamic, public investment in infrastructures that contribute to sectoral competitiveness has been crucial, and energy should be emphasised. Increasing electricity generation, expanding the network and improving transmission quality, including the diversification of generation sources, as well as universal access, which stands at 54.7%,” added Nyusi.
In the same speech, the president highlighted as “one of the most structuring measures” of the current government the implementation of the Loan Guarantee Fund, worth 4.4 billion meticais (€63.5 million), to “facilitate access to bank credit” for small and medium-sized companies.
“This measure comes at a good time, with inflation contained to single digits and after two rounds of relaxation of the MIMO reference rate [interest rate] by the monetary authorities,” he said.
He added that this new fund will contribute “to reducing the credit risk premium and consequently the cost of financing”.
“On the other hand, it will focus on extending maturities to accommodate investment needs and fixed assets, such as equipment and buildings, which favour the creation of new companies and the expansion of existing units.”
In front of the entrepreneurs, he acknowledged the need to address their concerns, which “demand” solutions, such as VAT refunds “above the established deadlines” or “the payment of overdue invoices”.
Regarding the reversal of the measure that ended the VAT exemption on products such as oil, sugar and soap at the beginning of the year, Filipe Nyusi said that it requires “careful reflection” so that “protectionism doesn’t create comfort zones and the end consumer really benefits”.
According to the Confederation of Economic Associations of Mozambique (CTA), which is organising the 19th Annual Private Sector Conference in conjunction with the Mozambican government, the aim is to reflect “on the progress and challenges of the Package of Economic Acceleration Measures (PAE)” and to “debate” the conditions in the business environment in order to “make the country more competitive”, with 80 foreign businesspeople attending.
With the motto “Investment and Business in the Environment of Economic Acceleration Measures: Challenges and Opportunities”, the XIX CASP expects more than 4,000 face-to-face and 20,000 virtual participants over three days, including national and foreign entrepreneurs and investors, financial institutions, cooperation partners, multilateral institutions and members of the government.
“More than 40 national and foreign speakers have been confirmed and delegations from more than 12 countries, such as Mauritius, South Africa, Angola, Brazil, Portugal, the Netherlands, France, Italy, Zimbabwe, among others,” says the CTA statement, adding that projects valued at around $1.2 billion (€1.112 billion) will be discussed.
During CASP there will be bilateral sessions “dedicated to dialogue and the promotion of partnerships and business with strategic Mozambican countries”, to attract investment, namely with Brazil, Portugal, France (with a delegation of 14 companies from the energy sector) and the European Union.
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