Mozambique has exceeded expectations in terms of global connectivity, according to the latest ranking by multinational DHL, in which Timor-Leste was the only Portuguese-speaking country included to increase competitiveness compared with the previous year.
In the fifth edition of the Global Connectivity Index, Mozambique is named as one of five countries where international flows exceed expectations due to foreign direct investment and trade – despite its 116th position in the overall ranking (among 169 countries ), in terms of intensity of international flows (“depth”) the country came in 83rd place.
“Although Mozambique is still among the poorest countries in the world … it has attracted a great deal of investment … mostly for natural resource-based mega-projects,” as well as having “exceptionally large imports of services” the DHL study said.
Mozambique’s main trading partner is South Africa, in a list that also includes Portugal (5th) and China (10th).
In the overall ranking, Mozambique’s 116th place is a decline of five places compared with its ranking in the previous year’s index.
According to DHL, Mozambique’s performance, the only African country among the five that exceeded expectations, is “positive news for the region, because a deeper global connection can help accelerate the economic growth of countries.”
“One of the reasons for optimism about Sub-Saharan Africa’s growth potential is the signing of the African Free Trade Agreement (AfCFTA), signed by 49 countries in March 2018. According to a study by the United Nations Economic Commission for Africa, full implementation of the AfCFTA could double intra-African trade and boost the continent’s global connectivity,” the report said.
The DHL study reported that connectivity reached a record in 2017, with “flows of trade, capital, information and people across national borders increasing significantly for the first time since 2007.”
In addition to the “depth” (intensity of international flows) countries are classified by “breadth” (geographical distribution of flows) of their international links.
Slightly below Mozambique in the ranking is Angola, in 119th position, 21 places below its ranking in the previous edition of the study.
China is by far Angola’s main trading partner (28% of exchanges), followed by Portugal (14%).
Cabo Verde (Cape Verde) appears in 141st place in the overall ranking, one place below the previous edition of the DHL study, but also deserves special mention, due to the size of the incoming trade in the country.
Portugal, with 26%, appears in the study as the main commercial partner of Cabo Verde, ahead of the United States and the United Kingdom.
Portugal is also the Portuguese-speaking country ranked highest in the study, in 35th place, four places below the previous edition, followed by Brazil, in 58th place, a decrease of three places.
Among the Portuguese-speaking countries, Timor-Leste (East Timor) is the worst ranked (163rd place), but recorded a rise of one position compared with the previous edition. (macauhub)