Mozambique: Almost half of FDI inflow came from Mauritius last year

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Mozambique: Almost half of FDI inflow came from Mauritius last year

5:20 CAT | 17 May 2024

For illustration purposes only. [Image: Google Maps]

Foreign direct investment (FDI) in Mozambique grew 2.1% in 2023, compared to the previous year, to almost US$2,510 million (€2,333 million), almost half coming from Mauritius.

According to a Bank of Mozambique report accessed by Lusa this Tuesday, FDI in 2023 compares with almost US$2,459 million (€2,284 million) in the previous year, but falls short of the US$5,101 million (€4,738 million) achieved in 2021.

“As for the main FDI partners in Mozambique, the highlight goes to Mauritius, which maintained its top position, with 44.7%, followed by South Africa, the Netherlands and Italy, with 25.4%, 14.6% and 7.2% of the country’s total net FDI, respectively,” the report reads.

Mauritius-domiciled subsidiaries of other countries invested chiefly in the extractive and manufacturing industry, accommodation and catering, and agriculture in Mozambique, while South African investment went primarily to the extractive and manufacturing industry, financial activities, and electricity production and distribution.

The table of the ten main foreign investors in Mozambique closes with China, with a weight of 0.6%, essentially in the extractive and manufacturing industry, and Portugal, with 0.5% of total FDI in 2023, in this case in construction, manufacturing industry, accommodation and catering, transport and storage.

In terms of sectoral distribution of FDI, the Bank of Mozambique report states that the extractive industry maintained its position “as the largest recipient of investment flows”, receiving a total of US$2,261.3 million (€2,100 million) in 2023, which corresponds to 90.1% of total foreign investment, 10.8% more compared to 2022.

The extractive industry is followed by the agriculture, animal production, hunting and forestry sectors, with US$53.3 million (€49.5 million), equivalent to 2.1% of the total, and the production and distribution of electricity, gas and water, which received US$40.2 million (€37.3 million) in external investment, corresponding to 1.6% of total FDI and 69.4% less compared to 2022.

Source: Lusa