Foreign investment in Mozambique rises by US$40 million in 2005

9 March 2006

Maputo, Mozambique, 09 March – Foreign direct investment (FDI) in Mozambique increased by US$40 million in 2005, against the previous year, with China for the first time amongst the 10 biggest investors in the country, Macauhub was told by government sources.

According to figures for investment in 2005, the pattern for previous years was maintained – the projects were mainly South African of a value of less than US$1 million, applied to tourism and agriculture in the center and south of Mozambique.

Figures published by the Mozambique Center for Investment Promotion (CPI), FDI in the country in 2005 totaled US$164.5 million, against US$124.1 million in 2004.

The tourism and hotel sector was the main target for investment, with projects costing a total US$83.9 million, followed by the agricultural sector (US$41.1 million) and industry (US$16.5 million).

The province of Maputo, which in the CPI’s figures includes the country’s capital, received US$78.6 million (US$17 million more than the previous year), and the neighboring region of Gaza received US$42.2 million.

The list of countries investing the most money continued to be headed by South Africa, with US$93.7 million, almost double the capital applied in 2004, followed by the United Kingdom (US$27.8 million), Zimbabwe (9.1), Portugal (7.3) and Sweden (6.0).

For the first time China figured in the group of 10 countries that invested most in Mozambique, coming sixth due to three projects totaling US$5.5 million, significantly higher than the US$222,000 invested in 2004.

The Chinese investment in agricultural, industrial and fishing projects, all in Sofala province, will create 315 jobs and, in one case, follows the new trend for aquiculture, especially in the coastal areas of Sofala, Zambézia and Cabo Delgado.

Aquiculture, which can be developed along the 3,000 kilometer Mozambican coastline, is focused on those regions and around shrimp farming. (macauhub)