Foreign Direct Investment in Mozambique fell 66.8% in the first quarter, compared to 2022, to US$460.1 million (€417.3 million), led by South Africa, according to Central bank data.
The Bank of Mozambique’s statistical report on the balance of payments in the first quarter states that this drop in Foreign Direct Investment (FDI) in the country was due to a 67.8% reduction in so-called “Major Projects”, and a 54.3% reduction in “traditional economy companies”.
In the first quarter of 2022, Mozambique had attracted more than USD 1,386 million (EUR 1,270 million) in foreign investment, with the start-up of gas production projects.
South Africa continues to lead among the countries of origin of FDI in Mozambique, with a total weight of 39.1% in the investment made in the first quarter, followed by Mauritius (34.3%), the Netherlands (17.2%) and the United Arab Emirates (8.9%).
In terms of sectoral distribution of FDI, the extractive industry maintained its position as the largest recipient of investment flows in Mozambique by receiving US$421.2 million (€382.1 million) in the first quarter, equivalent to 91.6% of the total.
“Of which stand out resources destined to finance gas exploration operations” with 298.3 million dollars (270.6 million euros), with the remainder “distributed among the areas of coal exploration, heavy sands and others”, explains the central bank.