Why Mozambique
Why Mozambique
Resource paradise with strong economic prospects
Mozambique is rich in a vast range of high-value natural resources, such as coal, natural gas, graphite, heavy metals, titanium, iron ore, precious stones and metals. Benefiting from a strategic geographical position, the country is considered as a natural entry for its landlocked neighbouring countries and serves as an entry platform in the SADC market, with over 370 aggregated million consumers.
Mozambique is recognised as a resource paradise. With proven coal and natural gas reserves estimated at 2.0 billion metric tonnes and 180 trillion cubic feet (tcf), respectively, the country holds the potential to be a significant player in the global energy market.
Over the last decade and a half Mozambique has showed continuous macroeconomic stability, reflected in the low inflation levels and stability of the exchange rate, within a strong economic growth context. The economy has grown at an annual average rate in excess of 7% between 2000 and 2015, as a result of the coal, gas, infrastructure and energy mega-projects.
Over this period, the country was one of the highest non-petroleum performers in Sub-Saharan Africa.
The economy has struggled since the commodity price plunge in 2015 and the debt scandal that erupted the following year. Multiple tropical cyclones through the country since 2019, an Islamist insurgency in the northern province of Cabo Delgado in 2021, and the Covid-19 pandemic, have compounded these problems. Notwithstanding, the short and medium-term outlook is still very positive.
IMF believes that the medium-term outlook for Mozambique remains positive, despite the external challenges faced in the short-term. The favourable growth rates expected in the medium term are driven by the country’s significant amount of natural resources and the ongoing development of the gas projects, strong investment growth and expansive workforce. The development that Mozambique has been experiencing promotes wealth creation across all industries and asset classes, with increased consumer spending occurring as a result.
Regardless of the recent economic challenges faced by the country, Mozambique is still forecasted to be one of the fastest growing economies globally over the next 10 years.
Attractive macroeconomic fundamentals: GDP growth is gradually picking up from the low 3.82% in 2016 and is predicted to reach 13.24% by 2027, while the currency has now stabilized at around MZN 64.
We have established a presence on the ground and have developed a strong local business network.