Mozambique is the third most attractive African country for foreign direct investment (FDI), according to a study carried out by international financial institution Rand Merchant Bank (RMB), cited by Mozambican radio station, Rádio Moçambique.

Lucas Chachine, the manager of the Mozambican subsidiary of the First National Bank (FNB), Africa’s second-largest investment bank and a member of the RMB Group family of companies, said that the position was due to Mozambique having it inflation, currency, and public deficit, under “control.”

He noted, however, that Mozambique faced a big challenge which was keeping its place, by controlling inflation, its currency, and the public deficit, “so that over the next five years it can continue to attract investments.”

The study noted that Mozambique had witnessed a rapid “increase in foreign direct investment,” which in 2010 totalled around US$800 million.

The document also noted that Mozambique had foreign debt of less than half of its Gross Domestic Product (GDP), a rate of economic growth of between 7 and 10 percent and inflation contained at between 6 and 10 percent per year. (macauhub)