Mozambique’s FDI slumps 66.8 percent in first quarter

Mozambique registered an inflow of foreign direct investment (FDI) of 460.1 million U.S. dollars in the first quarter of 2023, down by 66.8 percent compared to the same period in 2022.

According to data revealed in the quarterly Balance of Payments bulletin recently released by the Bank of Mozambique, the decline was caused by a reduction of investment in the extractive industries, mainly by large projects and companies from the traditional economy.

Regarding sectoral distribution, the central bank’s report indicates that the extractive industry maintained its position as the largest recipient of investment flows, accounting for 91.6 percent of total FDI. Of this amount, 298.3 million dollars was allocated to gas exploitation operations, and the rest was distributed among coal exploration, heavy sands, and others.

South Africa is Mozambique’s leading FDI partner, with a weight of 39.1 percent, followed by Mauritius, the Netherlands, and the United Arab Emirates, according to the Bank of Mozambique.