Mozambique is “strategically well-placed” to become a supplier of raw materials to the most dynamic emerging markets, specifically Brazil, India, and China, all of which are countries that it is getting closer to, according to Portuguese bank BPI.
In its latest report on Mozambique drawn up after a visit to the country and entitled “A New Place on the International Chess Board” analyst Paula Carvalho noted the attention being paid to the Mozambican economy following recent significant discoveries of natural gas deposits.
She also said that the Mozambican economy’s performance in the last few decades had outstripped that of its African counterparts, with an average rate of growth of 7.2 percent since 2000, alongside progress made in its social indicators.
2011 was “an important turning point for Mozambique,” with the launch of large mining sector investment projects and particularly coal exports, and in the near future BPI’s projections point to growth of between 6 percent and 7 percent.
“In the medium term, potential for expansion will probably be higher and current estimates may be conservative,” the analyst said.
“Recent natural gas discoveries have made the country the focus of the attention of large international energy sector companies, as everything points to world scale reserves,” she said.
In international terms these reserves may be the fourth-largest, behind Russia, Iran, and Qatar.
“If current estimates are confirmed, development and economic growth will probably be altered in the near future, as will the country’s place in the international panorama,” she said.
“Along with abundant forestry reserves and Mozambique has precious stones and gold, and also has vast coal and natural gas reserves,” said the BPI report.
Paula Carvalho also said that the way the local authorities manage expected revenues from exploration of natural resources will be fundamental for the future of the country and the likelihood of achieving inclusive growth and sustainable development.
Despite the positive situation currently, there are still “significant challenges and obstacles,” such as the deficit of infrastructure and transport, energy, sanitation, and health resources, as well as a lack of qualified workers. (macauhub)