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Africa Forum On Investment In Mozambique

Africa Forum On Investment In Mozambique

Author: Kasia Yoko
Date: 2012-09-19
Mozambique continues to outperform most of its African peers. Its economic growth has been strongly fuelled by a boom in the extractive sector. Massive undeveloped coal deposits in Tete Province have attracted billions of dollars in investments from major mining houses such as Vale and Rio Tinto. In addition to these major coal deposits, recent sizeable gas discoveries by ENI and Anadarko off the coast of Mozambique are turning the country into a key energy player in the region and are rapidly changing the economic fortunes of one of the world's poorest countries. Sectors such as construction, hospitality and logistics, banking and retail are expected to benefit from the rapid growth in the resource sector. Thanks to the development in the resource sector and its impact on the economy as a whole, the economic outlook for Mozambique remains bullish.

Have you been thinking of investing abroad? Well, according to some interesting data and confirmation from some powerful stakeholders, Mozambique is the place to invest your Dollars.

Tshepidi Moremong, Business Development Director for Rand Merchant Bank and Barbara Mommen, CEO of the Maputo Corridor Logistics Initiative were two invited guests at this week's Africa Frontiers Forum, which took place at the Oyster Box last Thursday.

With the recent discovery of oil and gas reserves, Mozambique saw a 6.75% growth last year, which is one of the highest growth margins on the African continent. With new power stations, ports and general infrastructures on the rise, economists and bankers are confident that the growth spurt, which Mozambique is enjoying at the moment, is just the beginning of good things to come.

"We are seeing unbelievable growth in the construction, banking and retail industry." Said Barbara Mommen, "Experience has shown that the trade between South Africa and Mozambique has not slowed down, however, as it is anywhere else in Africa, anybody who wishes to invest in Mozambique must realise that there are challenges."

South Africans are viewed by many Mozambicans as arrogant business partners and are not wholly trusted by the locals.

"Skill shortages present big challenges for any investors." Said Tshepidi Moremong, "Unless you have the know-how of the local customs and are prepared to formalise concrete relationships with a local partner, business in Mozambique is almost impossible."

So if you want to invest in Mozambique now is the time but you have been warned - business practice is tough there and without the right partnerships, with locals in place, it is virtually impossible.