Turkey leading Foreign Direct Investor
Mozambique received US$ 193.1 million in foreign direct investment (FDI) in the first half of 2018, with Turkey, with more than US$ 70 million, leading the list of the 10 largest investors, according to official figures.
Transport, communications, industry and construction were the areas that received Turkish investment in the first six months of 2018, and this funding was applied to projects in the city and province of Maputo. Figures from the Investment and Export Promotion Agency (Apiex), quoted by Mozambican newspaper O País, showed that China, the country’s largest economic partner, was in second place, followed by Mauritius.
Portugal, the only Portuguese-speaking country on Apiex’s list, came in fifth.
The province and cit…
Further Depreciation of Metical seems likely
The BMI Research consultancy said yesterday that it expected Mozambique’s national currency to depreciate in the medium term, to 64 meticais to the US dollar this year and 72 meticais in 2019. “In the medium and long-term, we think that the currency will depreciate against the dollar and we are predicting, at the end of 2018 and 2019, levels of 70 and 74, respectively,” a note on monetary policy of Mozambique reads, showing also average values of 64 and 72 for this year and the next.
Analysts also say that “GDP growth will remain below the average of the last decade” and that the country will remain excluded from international financial markets. Analysts at the Fitch’s rating agency group consultancy also write that Mozambique’s centr…
Government forecasts Economic Growth of 5.5%
The Mozambican government’s Economic and Social Plan for 2017, introduced by Prime Minister Carlos Agostinho do Rosario in the country’s parliament, the Assembly of the Republic, now envisages an annual economic growth of 5.5%.
The target growth rate for 2016 was seven per cent. Although the final figures are not yet available, the current forecast is that growth this year has slumped to 3.9 per cent.
The main driver of growth in 2017 is expected to be the extractive industry with a forecast growth rate of 24% (compared with an estimated 13.2% this year). The revival in international coal prices is expected to lead to an increase in the amount of coal mined from 7.8 million tonnes this year to rather more than 11 million tonnes in …
First Gas Sale Agreement signed with BP
Mozambique’s state-owned oil company ENH said on Tuesday it had signed a sales agreement with BP for the sale of liquefied natural gas (LNG) from the South Coral field.
Italian oil firm ENI, the operator of the field, also signed the agreement, ENH said.
“The contract is valid for 20 years, covering the sale of all LNG volumes that will be produced from the LNG floating plant in Coral South which will have a production capacity above 3.3 million tonnes of LNG per year,” the company said in a statement.
Pilot Hotel Development will offer 200 Rooms
The Southern African Development Agency (www.sadea.org) in partnership with the German based hotel and real estate consultants Lindner Hotels Real Estate GmbH (www.lhre.de) and the German development finance institution DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH (www.deginvest.de) is investigating options for a 200 room sustainable eco-hotel with an attached hospitality staff-training academy in Mozambique. It is a pilot project for further hospitality real estate investments throughout the African Subcontinent.
It is envisaged to ultimately create tourism routes by linking city hotels with resorts, wildlife lodges and mixed-use projects. A real estate and hospitality investment SPV, serving as the funding instrume…
IMF confirms stable Growth Path
Mozambique is on a strong growth path helped by robust investments, the International Monetary Fund (IMF) said today. The IMF, which completed a review of the country’s economic performance last month, said it was largely satisfied with the progress made. Mozambique has started to see growing investment in its mining and natural gas extraction industries. Fishing and agriculture are also seen as potential areas for foreign investments. A South African delegation which recently visited Mozambique said the country offered attractive investment opportunities.
IMF executive board acting chair Min Zhu said on Thursday that Mozambique’s low inflation and strong economic growth was commendable. The country should now strengthen fiscal adjust…
Foreign Direct Investment - A Comment on Reality
As public officials celebrate predictions of another above-average year of growth for the Mozambican economy, despite disappointments in social development and poverty reduction and delays in LNG project development, one of Mozambique’s stellar statistics continues to be its performance in the area of Foreign Direct Investment (FDI). Both regionally and globally, the country leads, showing a massive year-on-year increase last year according to statistics published by fDi Markets, a division of the London Financial Times. In terms of projects, while South Africa and Kenya saw declines of -15% and -12% respectively compared to 2013, Mozambique soared to +67% by this measure of FDI.
Regionally, Africa witnessed the largest increase in in…
100 MW Gas Power Plant at SA Border nears Completion
While South Africa’s Power Station Building Sites are still under strike and delayed by almost five years, neighbour Mocambique shows how it is done: Great progress is being made with the construction of a 100 MW natural gas fired power station at Ressano Garcia, on the border between South Africa and Mozambique. The first of 13 power generation sets arrived at Gigawatt Park in Ressano Garcia, the Mozambican border town, on April 13 2015. Each generating set consists of a 20 cylinder natural gas fuelled Rolls Royce engine manufactured at the Bergen factory in Norway and an ABB generator. Shipment of the 13 sets from Norway to Richards Bay in South Africa was completed in March and is now being transported by road to Mozambique.
Inauguration of President Felipe Nyusi
In last October’s presidential and legislative election, the fifth round of democratic elections to be held in the country since they first took place in 1994, Mozambicans voted Filipe Nyusi of the governing FRELIMO party into power.
The former defence minister will be inaugurated today with a variety of international guests attending the ceremony. Amongst them – how else can it be – SA President Jacob Zuma, since he has nothing to do back home and continues to ignore his country’s need for leadership in these – proverbally – dark hours!
FRELIMO wins Elections - RENAMO rejects results as fraud and MDM under 10%
RENAMO, Mozambique’s main opposition movement, has rejected provisional results showing the ruling FRELIMO party won Wednesday’s presidential and parliamentary elections, saying they were flawed by fraud and demanding a fresh vote. Results released on Thursday night showed that Defence Minister Felipe Nyusi, Frelimo’s presidential presidential candidate, had 63 percent of the vote after counts at almost a quarter of 17,000 polling stations. RENAMO candidate Afonso Dhlakama was second with nearly 30 percent of the vote.
“We don’t accept the results,” RENAMO spokesman Antonio Muchangastated yesterday. “The results should be annulled and new elections held.” Muchanga spoke shortly after African election monitors endorsed the vote as larg…