Mozambique is this year among the fastest growing economies in the world, with growth in all sectors, especially the financial and mining sector.
Growth of 6.9 percent in the second quarter of 2014 compared with the same period of 2013, according to figures published last week by the National Statistics Institute (INE), compared with annual averages of about 4.5 percent for sub-Saharan Africa 3 percent worldwide.
In the first quarter, growth exceeded all expectations, rising to 7.5 percent, despite some adversity related to the floods earlier in the year and a lack of security in some parts of the country.
Of the 15 economic sectors considered by the INE, all posted growth, especially financial services (19.3 percent) and mining (13.4 percent), which was driven by increased production in some mines, particularly the Moatize mine operated by Brazil’s Vale.
The industrial sector also posted strong growth of 12.5 percent in the first half, in a year that sees the launch of major industrial projects, notably the Chinese-Mozambican automotive partnership Matchedje Motor, which reached the market last week.
Founded about three years ago in the town of Machava on the outskirts of the Mozambican capital, Maputo, Matchedje Motor is the result of investment by China Tong Jian Investment Co., Ltd, and the unit is currently operating with two assembly lines and an annual production capacity of 30,000 vehicles.
In the second phase, planned for 2016-2017, the factory’s production capacity will increase to 100,000 vehicles per year, after which it should be increased to about 500,000 vehicles.
Electricity and water production also saw significant growth at the beginning of the year, of 11.9 percent.
According to the Economist Intelligence Unit, as in previous years “faster growing economic sectors continue to be driven by foreign direct investment in large-scale mines and energy.”
The EIU forecasts growth of 7.3 percent this year and, given the indications that economic growth could have been higher in 2013, is awaiting publication of national accounts by INE.
In the next few years Mozambique is due to receive huge investments to develop natural gas reserves found in the north of the country, which are among the biggest discoveries made worldwide in recent years.
These reserves, the EIU said, should attract “more foreign investors and new business partners,” “especially among the large Asian countries that are importers of natural gas.” (macauhub/MZ)