Mozambique: Foreign Direct Investment hit US$1.6 billion in Q1 2025 – central bank

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Mozambique: Foreign Direct Investment hit US$1.6 billion in Q1 2025 – central bank

11:51 CAT | 24 Sep 2025

FILE - Nearly US$1.234 billion was invested in the natural gas sector from foreign funds, and approximately US$282 million in coal mining, details the central bank. [File photo: Lusa]

Foreign Direct Investment (FDI) in Mozambique more than doubled in the first quarter, compared to the same period in 2024, to nearly US$1.626 billion, driven by Major Projects (MPs), according to official data.

According to a statistical report from the Bank of Mozambique, accessed by Lusa today, this performance contrasts with the FDI of US$779.2 million from January to March 2024.

“This robust performance is essentially due to the increase in FDI by private investors, which amounted to US$1.476 billion,” the report reads, detailing that nearly US$1.234 billion was invested in the natural gas sector from foreign funds, and approximately US$282 million in coal mining.

The Mozambican government expects FDI in the country to grow by over 40% this year, reaching US$5.071 billion, according to a budget proposal — as previously reported by Lusa, based on documents from the 2025 Economic and Social Plan and State Budget (PESOE).

This expected 40% FDI growth in 2025, the government states, will be “influenced by the implementation of structural natural gas projects in the Rovuma Basin” in Cabo Delgado, which include the resumption of construction of the TotalEnergies unit and Eni’s second platform.

“By 2025, a growth trajectory of US$5.071 billion is expected,” the document states, referring to the country’s projected foreign investment — a growth of almost 43% compared to 2024.

FDI in Mozambique had already grown 41.5% in 2024, compared to the previous year, to almost US$3.553 billion, according to central bank data compiled by Lusa.

According to a statistical report from the Bank of Mozambique, however, this growth in 2024 — compared to US$2.509 billion in 2023 and US$2.458 billion in 2022 — was still far from the maximum FDI of US$5.101 billion in 2021.

Previously, FDI in Mozambique had grown 2% in 2023 compared to 2022.

The Mozambican government had previously estimated that FDI in the country should double in 2024, driven by natural gas exploitation deals.

Mozambique has three approved development projects to exploit the Rovuma Basin’s natural gas reserves — ranked among the largest in the world — off the coast of Cabo Delgado. In addition to the one operated by Eni, the only one in production, there is Mozambique LNG (Area 1), operated by TotalEnergies, with up to 43 million tons per year (mtpa), and Rovuma LNG (Area 4), operated by ExxonMobil, with 18 mtpa — both in the development phase.

In 2024, a study by the consulting firm Deloitte concluded that Mozambique’s gas reserves represent potential revenues of US$100 billion.

This year alone, without the remaining operations yet to come online, Mozambique’s estimated gas production is 5.4 billion cubic meters, making it the sixth-largest producer in Africa.

Source: Lusa