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Investment Policy Review

Mozambique

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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.

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FDI trends, impact and prospects

Mozambique has been one of the fastest-growing least developed countries (LDCs) over the past two decades. Combined with sound macro-economic management, this has enabled the country to initiate a gradual decline in poverty, improve long-term development prospects and attract rising interest from foreign investors. Mozambique nevertheless remains one of the poorest countries in the world and social indicators highlight the poor living conditions of the majority. The challenges ahead therefore remain formidable and it will take decades of sustained and inclusive growth for absolute poverty and income inequality to be reduced sharply.

English

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