Mozambique: Nampula province receives most FDI in 2007

23 December 2008

Nampula, Mozambique, 23 Dec – Mozambique’s Nampula province received around US$5.2 billion in Foreign Direct Investment (FDI) in 2007, particularly in the mining sector, making it the area of Mozambique to receive most FDI that year, according to Mozambican newspaper Savana.

With just five approved projects, the mining sector overtook the hotel and tourism industry, with the sectors receiving US$193 million and uS$139 million, respectively.

A report from consulting firm KPMG, in its publication on the top 100 companies operating in Mozambique said that Nampula province had been the preferred choice for foreign investors last year, with a share of 63 percent of total investment. The province of Tete, followed in second place, with 20 percent and Gaza in third with 8 percent.

The survey noted that average levels of economic growth were of some 8 percent, making it possible to rapidly implement financial and economic reforms. These reforms have brought significantly increased foreign direct investment in all economic sectors, particularly titanium, natural gas and aluminium.

The growth of FDI as part of Mozambique’s GDP has been notable over the last few years, accounting for around 1.5 percent.

South Africa, which had been Mozambique’s biggest investor, was overtaken in 2007 by the United States, which with just five projects invested US%5 billion, accounting for 88 percent of total FDI, followed by Switzerland and Mauritius, with a share of 6 percent with a total of 10 projects. (macauhub)