Watch: Funding of of 104 million dollars promised at Niassa conference
DW / Maputo International Trade Fair
The recent meeting between Renamo leader Afonso Dlhakama and President Filipe Nyusi is one reason for renewed optimism about business opportunities in Mozambique among German companies exhibiting at the 53rd edition of the Mozambique Agricultural, Commercial and Industrial Fair (FACIM).
German companies say that political developments are improving the business environment and encouraging them to expand their investment in other parts of Mozambique.
Stela Mendonça, who works for a German company producing solar panels, praises the Renamo leader’s promise to demobilise his remaining forces.
“We are full of praise for President Nyusi, who went to the bush (to meet Afonso Dlhakama). Nothing will compromise peace for the Mozambican people. This is very good for the business and for the population in general. The country has potential, but where there is conflict, it does no good,” she says.
With stability returning to the country, the company is making plans to expand into districts where there is no electricity.
“We are working on creating more opportunities, especially in districts that are still unconnected. There are schools and hospitals with no power at all, or with only weak supply.”
The consulting firm Gauff, which operates in the area of water and sanitation, agrees that political and economic stability are necessary for development in any country.
Engineer Guilherme Drehmer says investors prefer to invest in safe countries.
“The path the Mozambican government is now pursuing has already established peace in the country, in addition to restructuring its economic condition,” he comments.
Unlocking IMF funds
Drehmer does however lament the blocking of funding by the International Monetary Fund (IMF). The Mozambican business community has suffered a setback, he says, but there is hope that everything will be resolved.
“I think the country is well on its way to solving its problems,” Drehmer says. “Foreign companies that have already worked in Mozambique believe this, and will bring additional resources to their projects as soon as there is economic stability’”
The German businessman also says there is “a lot of goodwill” on the part of German companies, who will invest in Mozambique because of the resources the country has.
“There is great potential for projects in partnership with local entrepreneurs. That is what we are looking for, and what we are developing here.”
Companies from 26 countries are participating in the 2017 edition of the international annual FACIM trade fair.Deutsche Welle