Maputo, Mozambique, 03 Jan – The value of South African investment projects approved by the Mozambican Center for Investment Promotion (CPI) was US$43.5 million between January and October, 2006, Mozambican news agency AIM reported.
CPI figures showed that South African investors made 47 applications for projects in the period, making South Africa one of the main investors in Mozambique.
Most South African investment has been focused on hotels and tourism. In this sector, most projects are located in the province of Inhambane (Southern Mozambique), which has much tourist activity along its coast.
The CPI said investors’ reaction in Mozambique had been quite positive, which would lead to invest of US$500 million in 2006. In fact, by the end of October total foreign investment was already close to that figure.
In 2005, the CPI approved investment projects valued at around US$119 million.
In the first half of 2005, tourism posted 46.5 percent growth in investment, with projects totaling some US$15 million.
Agriculture and agro-industry received 12 investment projects totaling US$19 million in the first six months of 2005, against around US$55 million invested in the same period of 2004.
Tourism in Mozambique has shown considerable growth since the end of the country’s civil war, in October 1992. In effect, since that time, the flow of tourists that travel to Mozambique is an annual average of around 600,000, which compares to 5,000 during the civil war.
According to Tourism Minister, Fernando Sumbana, the stable political environment in the country is the guarantee for greater investment, along with economic reforms that have led to reduced inflation, stabilization of the currency and maintenance of annual average gross domestic product (GDP) growth and growth of exports. (macauhub)