Portuguese investment in Mozambique rises five-fold between 2004 and 2007

2 July 2009

Maputo, Mozambique, 2 July – Portuguese investment in Mozambique rose five-fold between 2004 and 2007 but slowed last year according to a report on the economic relations between Portugal and Mozambique put together by Portugal’s foreign trade agency.

“The trend over the last few years has been a systematic rise in Portuguese investment in Mozambique, rising from 22.7 million euros to 113.2 million euros between 2004 and 2007, which means that its value has risen five-fold over three years,” said the document, cited by Portuguese news agency Lusa.

However, it noted that a fall in investment in 2008 took the figure back to 2005 levels, “with the added problem that the high level of divestment has led to a negative net investment over the last year.

In 2004, Portugal invested 22.7 million euros, rising to 33 million euros in 2005 and 40.9 million euros in 2006. The big jump, to 113.2 million was in 2007 and in 2008 investment fell again to 32.3 million.

In its turn, Mozambqiue’s direct investment in Portugal was 21,000 euros in 2004, falling to 16,000 euros in 2005, but rising to 1.8 million euros in 2006. In 2007 investment totalled 175,000 euros and last year fell again to 24,000 euros.

AICEP’s report on Portugal-Mozambique economic relations showed that bilateral trade has grown over recent years thanks to continued growth in Portuguese exports, which rose by an average annual rate of 14 percent, in the 2004-2008 period.

In 2004, Portugal exported products to Mozambique to the value of 54.9 million euros, rising to 64.7 million euros the following year and totalling 73.7 million euros in 2006. In 2007, exports rose to 89.4 million euros and last year rose to 92.7 million euros.

Mozambique’s exports rose from 28.8 million euros in 2004 to 33 million euros in 2005, 45 million euros in 2006, 63 million euros in 2007 and ended 2008 with 59.3 million euros in exports to Portugal.

To Mozambique Portugal essentially exports machinery and devices, although the weight of food products and paper pulp and paper, including books, has risen since 2004.

Mozambique sells agricultural and food products to Portugal, essentially sugar and crustaceans, which account for 96 percent of total exports to Portugal last year. (macauhub)