Browsing: Investing in Mozambique

  • Mozambique showcases a new visa program to allow visitors a 90-day stay upon entry
  • The travel and tourism industry’s overall contribution to Mozambique’s gross domestic product in 2019 was 6.2%, but that number dropped to 3.4% in 2020.
  • In 2021, Tourism receipts counted for nearly $700 million, accounting for approx. 4.1% of total GDP (according to World Travel and Tourism Council)

After the first publication of a stimulus package consisting of twenty measures at the beginning of August, Mozambique made an announcement regarding one of the first measures to be put into action: a reformed Visa system.

Mozambique’s Council of Ministers made the announcement that it had approved amendments that are anticipated to have an impact on both tourism and international investments.

Visitors to Mozambique will now be able to stay in the country for a total of 90 days, up from the previous maximum of 30 days. This change …

African economies thrive on an abundance of natural resources. However, the financial resources needed to exploit these resources remain a major constraint in Africa. Foreign direct investments are playing a critical role in filling the capital gap in Africa as most governments run on budget deficits. 

Mozambique, a new investment hub, is booming with capital inflows in its energy sector. With its abundant natural gas resources, the country has positioned itself as a dominant energy investment hub in Southern Africa.

The Prospects

Massive natural gas reserves

Mozambique has a lot of proven natural gas reserves. It ranks 14th in the world in terms of its reserves. However, production for this energy resource is still very low as well as local consumption. This is a result of poor infrastructure development to extract the resource and also proving that the sector is still in its infancy stages. There is increasing interest

I remember landing in Mozambique over a decade ago to an atmosphere of excitement. Foreign companies at that time had recently discovered major natural resources.
It was the time of the “coal rush” in the northern province of Tete and the initial gas discoveries in the Rovuma basin. It was the beginning of a long journey that years later would see the country start one of the largest LNG projects in history. I have always said that development would happen and be sustained by four pillars. Like dominoes they would fall sequentially, pushing each other in the following order: natural resources; infrastructure; industry and commerce; and agriculture.

I have been approached many times by investors looking for agriculture projects, but time and again the business model fell because there wasn’t the infrastructure to make it viable. Similarly, investors in industry would remark that many projects would simply not have enough …