Foreign investment in Mozambique grows 44.7% in nine months to more than 2.6 billion

Foreign Direct Investment (FDI) in Mozambique grew 44.7% in the first nine months of 2024, compared to the same period of the previous year, reaching 2,789.3 million dollars (2,655 million euros), according to data from the central bank.

According to data from the balance of payments report from the Bank of Mozambique, this growth, compared to 1,927.5 million dollars (1,835 million euros) from January to September 2023, is explained “by the 40.9% increase in FDI from Large Projects”.

In this sector, “the increase of 39.5% in the inflow of capital from the extractive industry stands out, with a weight of 69.6% of the total FDI carried out in the period under analysis”, as noted in the document.

Almost 28% of the FDI applied in Mozambique from January to September last year came from South Africa, equivalent to 778 million dollars (740.5 million euros), followed by Mauritius, with 26.4% and 735.5 million dollars (700 million euros), and the Netherlands, with 26% and 725 million dollars (690 million euros).

The extractive industry maintained its “position as the largest recipient of investment flows”, with a total of 2,449.7 million dollars (2,331 million euros) in the first nine months of the year, with 75.4% of this total FDI absorbed by the oil and gas sector, which, in annual terms, grew by 58.6%, to 1,706.1 million dollars (1,623.5 million euros).

The coal mining subsector registered an annual increase of 11.2%, totaling 545.3 million dollars (519 million euros) in FDI until last September.

FDI in Mozambique had already grown 2% in 2023, compared to the previous year, to just over 2,509 million dollars (2,387 million euros), according to data from the central bank previously reported by Lusa.

This performance compares with the 2,458 million dollars (2,339 million euros) in 2022, but is still far from the peak recorded in 2021, with investments in the area of ​​natural gas production, which caused FDI in Mozambique to soar that year to almost 5,102 million dollars (4,855 million euros).

In 2023, the Large Projects category – essentially natural gas mining – secured 2,087 million dollars (1,986 million euros) in FDI, in the form of capital.

Even so, FDI performance in 2023 was above the Government's projection, which was 1.425 billion dollars (1.356 billion euros).

The Mozambican government estimates that FDI in the country should double in 2024, driven by natural gas exploration businesses.

In the supporting documents for the State Budget Economic and Social Plan (PESOE) for 2024, the Government points to an increase in FDI to 4,778 million dollars (4,546 million euros).