Mozambique’s foreign direct investment surged by 44.7% to US$2,789.3 million (€2,655 million) in the first nine months of 2024, significantly driven by the extractive sector and large projects. South Africa, Mauritius, and the Netherlands were the top sources of FDI, primarily focused on oil and gas, which constitutes the majority of investments. The government projects that FDI will reach US$4,778 million (€4,546 million) by the end of 2024, driven by natural gas exploration.
Foreign direct investment (FDI) in Mozambique experienced a robust growth of 44.7% during the first nine months of 2024, totaling US$2,789.3 million (€2,655 million), according to the Bank of Mozambique.
This increase is attributed primarily to a 40.9% rise in FDI from Large Projects. Notably, a 39.5% surge in capital inflow from the extractive sector significantly contributed to the overall investment figures, which comprised 69.6% of total FDI recorded in this timeframe.
In terms of source countries, South Africa accounted for nearly 28% of the FDI, amounting to US$778 million (€740.5 million). Mauritius followed with 26.4% (US$735.5 million or €700 million), and the Netherlands provided 26% (US$725 million or €690 million). The extractive industry remained the leading sector for investment, drawing in US$2,449.7 million (€2,331 million), primarily in oil and gas, which increased by 58.6% to US$1,706.1 million (€1,623.5 million).
The coal mining sector also showed positive growth, with a reported FDI of US$545.3 million (€519 million), reflecting an 11.2% annual increase. Previously, Mozambique’s FDI had grown by 2% in 2023, reaching just above US$2,509 million (€2,387 million), compared to US$2,458 million (€2,339 million) in 2022.
Despite the growth in 2023, FDI levels remain below the peak of US$5,102 million (€4,855 million) reached in 2021, which was propelled by investments in natural gas production. In 2023, large projects, particularly in natural gas mining, attracted US$2,087 million (€1,986 million) in equity investment. The results for 2023 surpassed the Mozambican government’s forecast of US$1,425 million (€1,356 million).
The government anticipates that FDI in Mozambique will double in 2024, largely due to developments in the natural gas sector. According to recent budget documentation, FDI is projected to rise to US$4,778 million (€4,546 million).
Foreign direct investment in Mozambique saw substantial growth of 44.7% in early 2024, primarily fueled by the extractive industry and large projects, especially in natural gas. The nation expects this trend to continue, predicting further increases in FDI driven by ongoing exploration and exploitation of natural resources, potentially doubling investment amounts in the coming year.
Original Source: clubofmozambique.com
