Foreign direct investment (FDI) in Mozambique hit a record level last year, with most of it directed at the natural resources sector, the Bank of Mozambique has revealed. The FDI figure for 2012 was $5.218-billion, more than double the amount of $2.603-billion achieved in 2011. More than 78% of the 2012 investments were in the country’s natural resources sector.
Meanwhile, an energy and infrastructure specialist from the Standard Bank group, David Humphrey, has urged Mozambique to focus on the development of its infrastructure to facilitate the exploitation of its natural resources and the maintenance of its high growth rate. “[So that] the Mozambican economy can grow rapidly, with the discovery of natural resources, the country has to prioritise the construction of infrastructure, above all roads, railways and ports, including natural gas and coal infrastructures.” He was speaking at an economic briefing provided by his bank in Maputo.
“Without infrastructure, the Mozambique economy will not grow as fast as it should,” highlighted Humphrey, “which is the reason to start first the development of infrastructure to facilitate transport to the markets, then develop higher value elements, like ports and infrastructures for petroleum, natural gas and coal . . . Assuming the heavy investments now made by the international companies in the gas and coal sectors, the challenge which is now facing the Mozambican government is to know how to benefit from these investments and obtain reve- nues: the government has to identify the projects it wants to prioritise and how it wants to do them, determine the roles of the public and private sectors, also indicating the laws and regu- lations which must be followed and the banks, such as Standard Bank, must indicate the role they intend to play in the process, granting loans or using our trade or foreign currency facilities, so that these projects can be executed in the fastest and most efficient form possible.”
Separately, German Foreign Minister Guido Westerwelle, during a press conference in Maputo, cited Mozambique’s natural resources as one (but by no means the only) reason for strengthening economic relations between the two countries. “Mozambique has reached a good level of democratic stability and, on the other hand, has discovered enormous mineral resources,” he affirmed. “Together, these provide enormous potential and it is in this context that we want to continue our cooperation.”
He highlighted that Mozambique was an example of what Africa offered the world and a good example of overcoming the tragedy of war. The country deserved global recognition for its policies, which aimed at political stability and economic growth. It was also being recognised by the international community for its contribution to stability in the Southern African Development Community region.
Germany has already invested in Mozam- bique’s agriculture, banking, energy, infrastructure and tourism sectors and is one of the African country’s main development cooperation partners. The two countries have agreed to strengthen cooperation in the development of small and medium-sized enterprises, sustainable develop- ment, technology transfer and youth education and training.