Mozambique's economy opportunities



The most successful foreign venture to date is the $2.5bn Mozal aluminium smelter – just 17km from Maputo. The smelter uses Aluminium Pechiney AP35 technology to produce over 500,000 metric tonnes a year aluminium ingots and is supplied with alumina by the Worsley refinery in Western Australia.

The shareholders are BHP Billiton, Japan’s Mitsubishi Corporation, Industrial Development Corporation of South Africa and the Mozambique government – holding 47 per cent, 25 per cent, 24 per cent and 3.9 per cent stakes, respectively, in a project that has made Mozambique one of the world’s leading exporters of aluminium. In 2009, foreign-owned projects led by Mozal Aluminium accounted for 12 per cent of GDP.

Mozambique is contemplating new financing options to boost infrastructure projects, including private finance initiative (PFI), public-private partnerships (PPPs), external sovereign bond issues, syndicated loans and co-financing from bilateral export credit agencies.

The authorities should be cautious that non- concessional borrowing does not undermine fiscal and debt sustainability. Private investment is expected to increase significantly in mining, energy, refining and infrastructure as series of mega-projects are implemented.


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