Investment Policy Review - Mozambique

image of Investment Policy Review - Mozambique

The Investment Policy Review recommends that the Government of Mozambique widen the scope of its investment promotion efforts and further improve its regulatory framework in order foster economic activity, job creation and sustainable development. It encourages the authorities to look beyond mega-projects and investments in the mining sector for sources of job creation, economic diversification and poverty reduction. It warns against the potential pitfalls of relying excessively on mineral resources for development, while stressing the need to maximise the positive impact of investment in extractive industries. It also suggests concrete ways through which the business environment could be further improved to foster economic activity.



Executive summary

Structural reforms, sound macro-economic policies, an opening to the global economy and political stability have generated strong growth since Mozambique emerged from the civil war and started its transition from planned to market economy. As a result, the poverty rate has declined and significant progress has been achieved towards attaining the Millennium Development Goals.Yet, the overall picture is mixed and progress achieved so far insufficient. Mozambique remains one of the world’s poorest countries, the decline in poverty appears to have stalled in recent years and income inequality remains high. The country is now confronted with an issue of “quality of growth” and it needs to consider measures to ensure that growth is pro-poor, inclusive and environmentally sustainable.


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