Instability and lack of transparency keeping investors away from Mozambique – BMI

Login

Register

http://www.clubofmozambique.com/

Instability and lack of transparency keeping investors away from Mozambique – BMI

12:33 CAT | 04 Sep 2017

Magazine Independente (File photo) / A View of Maputo

BMI Research consultancy says that political and macroeconomic instability, coupled with a lack of transparency, will keep international investors reluctant to invest in Mozambique, which will in turn have to depend on the natural gas sector to develop.

“Mozambique will continue to be one of the most risky markets for infrastructure development in sub-Saharan Africa, with investors concerned about the current political and economic instability, lack of transparency and weak business environment compared to regional peers,” an analysis of the country’s attractiveness reads.

In the document sent to investors to which Lusa has access, the Fitch Group analysts write that “significant opportunities for investors in the coming years will focus on the development of the gas industry with several large-value and large-scale projects in preparation to take advantage of the reserves still to be exploited”.

According to the regional classification, Mozambique is ranked 15th riskiest in Africa and 86th in the world for investment.

BMI notes that, after gas, construction is the most promising sector.

“The biggest opportunities in the construction sector will come from the exploitation of gas reserves, with export terminals and support infrastructure needing to be built,” BMI concludes.

Source: Lusa