Mozambique's economy opportunities

Mozambique, economy, opportunities, africa, market, services, review, projectsMozambique becomes a ‘project driven’ market for project financiers, engineering, procurement and construction companies - Photograph: Richard Lord

Mozambique becomes a ‘project driven’ market with lucrative openings for project financiers, engineering, procurement and construction companies, as well as general services 

The economy’s structure will change as ‘multiplier effects’ of megaprojects (i.e. investments equal or exceeding $500mn) lead to an expanded and more diversified industrial base. The coming onstream of projects in the natural resources sector will increase tax revenues and reduce heavy reliant on foreign aid over the medium term.

In 2007-09, the total value of projects approved by the Investment Promotion Agency (CPI) totalled $14.9bn (see Table below). The World Bank noted: “If a significant proportion of these projects are realised and well managed, they would have the potential to transform the socio-economic environment in Mozambique and create many thousands of new jobs. However, all authorised projects are not implemented while others are realised over several years’ time.”

 

Authorisation & Implementation of Authorised Industrial Projects, 2005-09

 

2005

2006

2007

2008

2009

Total

Number of authorised projects

38

34

66

57

60

255

Number of implemented projects

9

12

13

9

3

46

Number of projects in pipeline

29

22

53

48

57

209

Per cent share of projects implemented

24

35

20

16

5

18

Source: Investment Promotion Agency

Alain Charles Publishing, University House, 11-13 Lower Grosvenor Place, London, SW1W 0EX, UK
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