Mozambique greenlighted 742 state projects valued at US$6.2 billion in the last two years, says Trade Minister Silvino Moreno.
He also noted the need for ongoing reforms to improve business conditions.
He highlighted that the country has a newly enacted Private Investment Law designed to be more globally competitive.
Furthermore, new laws focusing on small and medium enterprises are in the pipeline. This includes commerce rules and a plan to boost Mozambique’s business atmosphere.
Minister Moreno also declared the transformation of the National Inspection of Economic Activities into a more effective entity.
In his address, he pointed out that “92,452 businesses have gained approval via the e-BAU platform in the last two years, including 2,026 new industries.”
However, the minister acknowledged a dip in the manufacturing sector’s contribution to Mozambique’s GDP.
“It dropped from 7.8% in 2020 to 7.4% in 2022. These numbers fall short of our 2024 goal of a 9% contribution,” he observed.
According to Moreno, a survey of industrial activities is also in progress to provide a comprehensive view of the country’s industrial sector.
Context
Mozambique, located in southeastern Africa, has a growing economy but faces challenges like poverty and corruption.
The country is rich in natural resources, including coal, natural gas, and minerals.
Foreign investments have surged in the past decade, especially in the energy sector.
The new Private Investment Law aims to make Mozambique more appealing to international investors.
Small and medium-sized enterprises are considered the backbone of the Mozambican economy.
Mozambique is working to diversify its economy and reduce its dependence on imports.
The country faces economic challenges, including a high debt burden and inflation.
Political instability and corruption have also been obstacles to economic growth.
According to its long-term strategy, Mozambique aims to become a middle-income country by 2030.
Ongoing reforms seek to make the business environment more investor-friendly and sustainable.