Foreign investment in Mozambican tourism falls 40 percent between 2008 and 2009

26 July 2010

Maputo, Mozambique, 26 July – Foreign investment in Mozambique’s tourism sector fell by 40 percent in the last two years, following the international financial crisis, the country’s tourism minister, Fernando Sumbana said Friday in Maputo.

The minsiter also said that in the same period national investment in the sector had risen 12 percent, likely due to campaigns the government had carried out for Mozambican businesspeople to invest in tourism.

Although national investment rose in percentage terms, project run by foreign investors continue to have the biggest weight in the tourism sector, which according to Sumbana, “have been investing large sums of money.”

The Mozambican minister cited the cases of the Rani group, of the United Araba emirates, which invested 70 million euros in a tourism project, as well as Portugal’s Pestana and Visabeira groups, which have investments mainly in tourist resorts along the coast of Inhambane province, in southern Mozambique.

“Mozambican businesspeople have a lot of investments, but they are small. Even so, it is these numerous investments that provide a lot of jobs and have an extremely positive multiplying effect on the economy,” said Sumbana, noting that the government’s challenge in the sector was to identify and explore new markets.

“We are trying to attract Italian investment, particularly to make the link with the projects that have in Tanzania, Kenya and Uganda. We have also been trying to attract British investment,” he said.

A study of tourism in Maputo, carried out in 2009 by the Dutch Development Organisation (SNV), found that 44 percent of the Mozambican capital’s market was of domestic origin, with 148,000 visitors. (macauhub)