Over the next few years Mozambique is, according to the Deutsche Bank, one of three African countries earmarked for foreign investment. With infrastructure projects worth US$32 Billion being developed.
Claire Schaffnit-Chatterjee, an analyst from Deutsche Bank, said that economic growth in the country would be more than 8 percent per year until 2019, benefitting from a positive macroeconomic climate. “Coal mining, investment in transport infrastructure and development of the natural gas sector should drive growth over the next few years. Financial and construction services will be sectors with high growth.” “Mozambique has become an important destination for foreign investment, and over the last two years has attracted US$5 billion, the equivalent of a third of its GDP, for development of natural gas reserves, coal as well as needed roads, railways and port facilities.” “Brazilian multinational company Vale is investing US$6.5 billion in a terminal and 900 kilometres of railway to link it coal mine in Moatize to the deep water port of Nacala, and expects to double its exports by next year when coal becomes the main export from Mozambique.”“The country has the potential to become the biggest coal producer in Africa, with total reserves of 20 billion tons, but also, one of the main exporters of natural gas in 2020.”
Natural gas discoveries have already provided income of US$1.3 billion for the Mozambican state, through capital gains taxes.
According to the World Bank, commercial exploration of coal and gas deposits will more than double the country’s wealth.
Deutsche Bank said that the government’s “ambitious policy agenda” was favourable for Mozambique as it included attracting foreign investment as well as a strategic five-year plan to improve the country’s business climate.
