Page 41 - 40th Summit Brochure 2020

WELCOME TO MOZAMBIQUE

The Republic of Mozambique gained indepen- Accordingly, to leverage the efforts to-
dence on 25 June 1975, and since then, the wards national policies and strategies, the
country has experienced significant economic Government has listed areas of focus and in-
growth. tervention directly aligned with the strategic
In the SADC region, Mozambique is cited options, mainly Agriculture, Infrastructure,
as the second largest recipient of foreign and Tourism and Industry.
domestic direct investment thanks to its geo-
graphical location and economic potential, as I. AGRICULTURE AND AGRO-PROCESSING
well as a niche of investment and business de- In the areas of agriculture and agro-processing,
velopment opportunities in the priority sectors the focus is on structural transformation and
for development, including Agriculture, modernization, expanding the existing poten-
Tourism, Infrastructure, Manufacturing In- tial in production and productivity of the main
dustry, Energy and Mineral Resources. strategic crops and processing, and ensuring
Mozambique's GDP was expected to that national production can be commercial-
grow by 5.8% in 2020. However, due to the im- ized in the national market and exported to the
pact of COVID-19, that figure was revised Southern African region, the African conti-
downward to 2.2%, rising to 4.0% in 2021. nent and the world.
With the discovery of gas offshore esti- The structural opportunities existing in
mated at 180 trillion cubic feet, the country has this area include, among many others, the
the opportunity to diversify its economy, thus Messalo and Luenha Hydro-Agricultural de-
improving its resilience and competitiveness. velopment, which can re-purpose and expand
In broad terms, the gas sector may help to up- the irrigation systems through the construc-
grade the subsistence agriculture to agribusi- tion of dams, thus increasing the production
ness, buttress the electrification of of cereals and vegetables to supply the North-
Mozambique through various energy solu- ern and Central regions, placing emphasis on
tions, and promote other industries, such as the potential of the Zambezi Valley, for the en-
fertilizers, fuels and metal-mechanical compo- tire Central region, besides Nampula, where
nents. The country could also improve its such lucrative products as macadamia, cashew
38 macroeconomic stability, with higher rev- nuts, tea, copra, various tropical fruits and soy-
enues, thus contributing to tax revenue sur- beans find natural conditions, also favourable
pluses and a sovereign wealth fund to cushion to fishing and aquaculture.
external shocks. The private sector is invited to invest in
agro-processing, storage and logistics that sup-
port farming, adding value and penetrating
INVESTMENT OPPORTUNITIES IN high-value market sectors of the domestic and
MOZAMBIQUE foreign markets.
Mozambique is endowed with extensive and
rich natural resources, its geo-strategic loca- II. INFRASTRUCTURE
tion is favourable for developing any type of In the infrastructure sector, the plan is to mo-
economic activity and business due to its ac- bilize resources and ensure that the building of
cess to the sea and the roads and railways to quality and resilient infrastructure enhances
various countries of the region, especially to economic activity, thus reducing the transac-
Malawi, South Africa, Tanzania, Zambia and tion costs and promoting greater national and
Zimbabwe. regional integration.
The country's economy is Opportunities offered in this sector range
based mainly on agriculture, but from establishing dams and opportunities in
the industrial sector, particularly the generation of energy, aimed at diversifying
the manufacturing and extractive sources of energy under the framework of
industry, is growing rapidly. Mozambique's energy matrix:
By 2024, Mozambique ❖ Hydroelectricity potential;
plans to adopt and consolidate an ❖ Hydrocarbon reserves;
increasingly diversified and com- ❖ Coal; and
petitive economy, through the ❖ Renewable energy sources.
continued prioritisation of invest- The private sector is encouraged to get in-
ments in sectors with a catalytic volved and partner with the public sector, in-
and multiplier effect on the econ- cluding to assess the possibility of energy
omy. production for anchor projects, as was the case