Mozambique: Economy growing less than available natural resources

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Mozambique: Economy growing less than available natural resources

9:21 CAT | 23 Jun 2023

Photo: Twitter/ @saranichollsCAN

President Filipe Nyusi admitted in Maputo this Thursday that the growth of the country’s economy was failing to match the potential of its natural resources, reiterating the commitment to industrialization for the diversification of the productive base.

“We can grow more and we must grow more,” President Nyusi said at the opening of the 18th Annual Conference of the Private Sector (CASP), which brings together businesspeople, members of the government and representatives of national and international financial institutions.

The productive fabric and economic growth must reflect the quantity and quality of resources available to Mozambique, the head of state added.

In this sense, Nyusi continued, the country has to invest in industrialization, taking advantage of its agricultural, energy and water potential, as well as the logistics platform provided by its ports and road corridors.

“Our industrialization policy and strategy revised in 2016 foresees an industrialization from the district, supporting projects that create jobs, infrastructure and innovation,” Nyusi emphasised.

The Mozambican president noted that the approval last August of the Economic Acceleration Measures Package (PAE) constituted an important step towards mobilising the private sector towards increasing investment and business opportunities.

Nyusi also mentioned Mozambique’s accession to the African Continental Free Trade Area [AfCFTA] as an important opportunity for national companies.

“Mozambique today must be seen as a hub and logistics platform, a gateway for not only the six countries of the SADC with no access to the sea, but also for the African Continental Free Trade Area, a market of around 1.3 million consumers,” he declared.

Filipe Nyusi stressed that the Mozambican economy is following a remarkable growth trajectory, despite being far from its potential, having recorded a gross domestic product (GDP) growth of 4.1% in 2022.

The CASP has the physical presence of more than 3,000 participants, plus around 12,000 attending virtually.

Businesspeople from Portugal are among the ten foreign delegations present at the CASP, which also include Brazil, Angola, Zimbabwe, South Africa and Mauritius.

During the conference, projects from various sectors valued at around US$1.2 billion (over €1 billion) will be discussed.

Attended the @CTA__Official #PrivateSector conference, #CASP with the honour to hear from H.E. @filipe_nyusi on #Mozambique’s progress in fair-trade & rules-based trade. This creates opportunities for 🇲🇿 to fully benefit from the vision of the @AfCFTA. pic.twitter.com/uG0kwTPEaT

— sara nicholls (@saranichollsCAN) June 23, 2023