Debt crisis in Portugal leads companies to invest less in Mozambique in 1st quarter

27 May 2011

Maputo, Mozambique, 27 May – Portugal has lost its first place in the list of biggest foreign investors in Mozambique to Mauritius as the amount invested by Portuguese companies fell 83 percent year on year in the first quarter of 2011, according to figures from Mozambique’s Investment Promotion Centre (CPI).

From a total of US$40.8 million in Portuguese investments approved by the CPI in the first quarter of 2010, this figure dropped to just US$6.9 million in the first quarter of this year.

Due to the deep crisis Portugal is currently facing it is no longer the biggest foreign investor in Mozambique, as it was in 2010, and is now in third place on a list headed by Mauritius, which invested US$30.2 million in the first quarter.

The United Arab Emirates (UAE) is placed second with investments approved by the CPI totalling US$23.1 million.

In the first quarter of 2010 the third place on the list of biggest investors in Mozambique was taken up by Italy, and Spain was placed second.

Also according to the CPI’s figures, foreign investors are focusing on the city and province of Maputo to set up their projects, and 91.4 percent of all the investments approved in the first quarter of the year were channelled into the area.

In the period the CPI approved foreign investments totalling US$691.6 million, of a total US$756.6 million in approved investments, including Mozambican and foreign investments. (macauhub)