Mozambique: Government promises more business-friendly legislation
Portuguese investment in Mozambique fell by EUR154 million in 2016
2:56 CAT | 23 Feb 2017
O País (File photo)
Portugal’s investment in Mozambique fell by EUR154 million in 2016, figures from the Portuguese Central Bank quoted by newspaper Diário de Notícias confirm.
The slowdown was caused by the fall in the price of oil and the difficulties of establishing and expanding Portuguese investments in Mozambique. For the same reasons, foreign investors also cut their investments last year in Angola by 10 percent, equivalent to EUR 409 million.
The uncertain future of these two African economies is also pointed out as one of the reasons for the withdrawal of Portuguese investment.
Portuguese investors also fled the United Kingdom in 2016 after the ‘Brexit’ vote, the value there falling by half, according to the Diário de Noticias.
Despite these divestments, Portugal’s total foreign investment increased by 1.7 percent last year, with the Netherlands, Brazil and Spain the main destinations.
According to data released in 2016 by the Investment Promotion Center (CPI), Portuguese investment in Mozambique in 2015 was US$ 88 million (EUR 83.2 million), At the time, Portugal was considered the fourth largest foreign investor in the country.
After the volume of investments fell from about US$7 billion in 2014 to about US$1.3 billion in 2015, the CPI predicted a recovery to $ 4.5 billion.
Portuguese investment was not alone in falling in Mozambique. In 2016, several factors contributed to the slowdown of investments from other countries, chiefly the fall in the price of coal and oil, which delayed investments in the extractive industry.
Source: O País
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