Foreign Direct Investment (FDI) in Mozambique saw a drop of 66.8% in the first quarter, compared to 2022, amounting to US$460.1 million.
According to the central bank’s recent report, the primary investor was South Africa.
This significant decline in FDI was influenced by a 67.8% decrease in significant projects and a 54.3% reduction in traditional economic enterprises.
In the first quarter of 2022, Mozambique had garnered over US$1.386 billion in foreign investment, mainly due to the commencement of gas production projects.
South Africa remains the top origin country for FDI in Mozambique, accounting for 39.1% of the investment in the first quarter.
It’s followed by Mauritius (34.3%), the Netherlands (17.2%), and the United Arab Emirates (8.9%).
In the sectoral distribution of FDI, the extractive industry continued to be the primary beneficiary in Mozambique, receiving US$421.2 million, which is 91.6% of the total.
A significant portion, US$298.3 million (€270.6 million), was directed towards gas exploration operations.
The remaining amount was dispersed across coal mining, heavy sand exploration, and other sectors, as stated by the central bank.