Mozambique is finalising a new strategy to attract investment from China, focused on agro-industry and light industry, at a time when the country is also being sought out by Chinese pharmaceutical manufacturers and medical equipment manufacturers.
Information provided by the International Trade Centre (ITC) showed that the strategy will be developed under the Partnership for Investment and Growth in Africa (PIGA) programme and will be implemented by the Mozambique Investment and Export Promotion Agency.
“Participants in the strategy-setting process include sector-specific civil servants, the Mozambican private sector and representatives of the Chinese government and business communities,” the ITC said.
The strategy, to be completed this summer, will “provide Mozambique with a multi-year road map to target new investors, build on existing ones and work with stakeholders on the investment climate to carry out reforms that stimulate industry in four sub-sectors: manufacturing clothing, textile production, cashew processing and fruit processing.”
Over the last decade, China has taken over from the more traditional investors in Mozambique – Portugal and South Africa.
The investment has been directed mainly at non-productive sectors, such as transport infrastructure and real estate.
The ITC said China’s “Go Out” strategy – to encourage Chinese companies to invest abroad – should “encourage unprecedented values of direct productive investment” in China, and “the Mozambican government decided to attract a significant part of that investment.”
According to the ITC, Chinese companies are interested in the drugs and medical equipment market in Mozambique and nearby countries, as demonstrated by presentations made in June by the ITC and the China Chamber of Commerce for Import & Export of Medicines & Health Products.
Jiang Xuejun, head of the ITC for Asia and the Pacific, said “the rapid growth of the continent’s (African) industrialisation process in recent years, significant improvement in transport infrastructure and the establishment of the African Continental Free Trade Area – which covers more than 50 African countries – together represent significant historical opportunities for regional pharmaceutical production centres in Africa.”
Chinese pharmaceutical investment “could have a major impact on social and economic improvements on the African continent,” by helping to make reliable and quality medicine cheaper and more affordable, said the ITC. (Macauhub)