Mozambique continues to be favoured destination for foreign direct investment

19 December 2013

Mozambique continues to be a favoured destination for foreign direct investment, related to the launch of coal mining and oil and gas extraction projects, the governor of the Bank of Mozambique, Ernesto Gove, said Wednesday in Maputo.

Figures compiled by the central bank and cited by the Mozambican press showed that from January to September net foreign direct investment totalled US$4.515 billion or US$760 million more year on year. This figure is the equivalent of around 30 percent of the country’s projected Gross Domestic Product (GDP) for the entire year.

At an end-of-year meeting with the Mozambican financial system, Gove said that the high level of investment the country was attracting for exploration of non-renewable natural resources required an increase in the import of goods and services, leading in the short term to a deterioration of the current account balance to around 45 percent of GDP.

In terms of the outlook for 2014, Gove said that maintaining peace was essential for consolidation of macroeconomic and financial sector stability, as well as to meet the targets set out in the Economic and Social Plan for 2014, which project real GDP growth of 8.0 percent, annual inflation of 5.6 percent and foreign reserves to cover at least 4.0 months of imports. (macauhub)