Mozambique, a country on the rise on the African economic scene, has attracted increasing investment in recent years, boosting its economic growth and the diversification of its sectors. In 2023, the country was recognized as the third most attractive for business activities in Africa, according to Standard Bank’s Africa Trade Barometer. This recognition and continued economic progress raise questions about the main investment points in Mozambique and how these sectors can be exploited.
In this article, we highlight the main investment points in Mozambique and the relevance of different sectors to the country’s economic growth.
Agricultural sector
The agricultural sector is another highlight for investment in Mozambique. The country has vast areas of arable land and a favorable climate for agricultural production, which places it in a privileged position for the development of this sector. Investments in agricultural infrastructure, technology and training have been made to increase productivity and efficiency in the sector. In addition, initiatives such as the promotion of export crops like cashew and cotton have contributed to the diversification of the Mozambican economy and the generation of foreign currency.
As far as food crops are concerned, preliminary data points to a 4% increase in cereal and legume production, with 2,478,907 tons of corn (4%), 256,928 tons of rice (5%) and 474,769 tons of beans (5%) standing out. In tubers, cassava production grew by around 6%, as a result of the intensification measures being carried out, particularly in the south of the country.
Source: PESOE
Energy sector
The energy sector has been one of the main focuses for investment in Mozambique. The country has vast reserves of natural gas and coal, which makes it an attractive destination for companies in the energy sector. Significant investments have been made to explore and develop these resources, aimed not only at generating energy for domestic consumption, but also for export. Projects such as the Temane Thermal Power Plant and the expansion of the liquefied natural gas (LNG) project in Cabo Delgado stand out as examples of the potential of this sector to boost Mozambique’s infrastructure and economic development.
Source: MIREME
Financial sector
The financial sector in Mozambique has undergone significant changes, with investments in technology and innovation to promote financial inclusion and expand banking services to rural areas and remote communities. In addition, the Mozambican capital market is developing, offering investment and financing opportunities for local and foreign companies. The modernization of the financial sector is playing a key role in supporting economic growth and creating an enabling environment for business in Mozambique.
Source: Bank of Mozambique
Hotel and tourism sector
Mozambique has enormous potential in the tourism sector. Investment in tourism infrastructure, such as hotels, resorts and related services, has been a priority to attract international visitors and boost growth in this sector. The promotion of sustainable tourism and the preservation of natural resources are key areas of focus to ensure the long-term growth and sustainability of this vital sector for the Mozambican economy.
In 2023, Mozambique hosted the 9th edition of FIKANI, an event that brought together various exhibitors from the tourism market and opened up space for new investment opportunities and partnerships in the sector. FIKANI is known for being an important meeting point for business leaders, investors and government representatives interested in the potential of Mozambican tourism.
Mining sector
Mozambique has vast mineral reserves, including coal, gold, titanium and natural gas, which have attracted significant investment in the exploration and development of these resources. Mining plays a crucial role in the Mozambican economy, contributing to exports and generating revenue for the government. Projects such as the Moatize coal mine and others have attracted foreign investment and boosted growth in this sector.
Source: MIREME Sectoral Data
Fishing and aquaculture sector
The fishing and aquaculture production plan for last year was 474,576 tons, of which 23,576 tons came from industrial and semi-industrial fishing, 442,579 tons from artisanal fishing and 8,421 tons from aquaculture.
Source: MIMAIP Sectoral data
Technology and telecommunications sector
The technology and telecommunications sector has received special attention in investments in Mozambique. The expansion of telecommunications infrastructure, including mobile networks and internet access, has contributed to increasing connectivity throughout the country. In addition, investments in information and communication technology (ICT) have boosted innovation in various sectors, promoting the efficiency and competitiveness of the Mozambican economy.
Communications
The volume of services provided in communications and information performed well, growing by 12%. This positive performance is reflected in the expansion and modernization of mobile telephony to the districts and the use of post offices and mobile wallets.
Source: MTC
Promising prospects for Mozambique’s future
Source: Bank of Mozambique
Based on investments in several key sectors, Mozambique is positioned for a promising future. The diversification of the economy, driven by investments in energy, agriculture, infrastructure and technology, is creating opportunities for the country’s sustainable growth and economic resilience. As these investments continue to materialize, Mozambique is expected to become an increasingly attractive destination for investors and a successful example for economic development in Africa.
