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.



The investment framework

Mozambique operated as a planned economy from independence in 1975 until 1987, when President Joaquim Chissano started the transition to a market economy and initiated the political reforms that led to the General Peace Agreement. Initial reforms were supported by a structural adjustment programme with the World Bank and lending from the International Monetary Fund (IMF). Mozambique has continued to benefit from the strong support of the donor community ever since.


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