Mozambique this year mark four decades of independence from Portugal, with robust economic growth rates buoyed by abundant natural resources giving the southern African nation reason to celebrate. This land mark event takes place under its new elected President Filipe Jacinto Nyusi, who is by coincidence also the 4th President of Mozambique.
Mozambique is a prime investment destination following the recent discovery of huge natural gas and coal deposits. Those natural resources are today the biggest source of attraction to many countries including its former colony.
The year 2012 saw the last bone of contention between the two countries resolved, with the sale of the gigantic Cahora Bassa dam to Mozambique, meaning that any problems that came up in the decolonisation of Mozambique have been resolved.
Mozambique has massive potential underpinned by its vast natural resources, which are making the country more atractive. This has been one of President Nyusi visite to France, following the invitation made by his contrepart and by French companies that are willing to invest in Mozambique. This is also the second country in Europe the President is visiting after Portugal.
Mozambique has massive potential underpinned by its vast natural resources. This has been one of President Nyusi to France, following the invitation made by his contrepart and by French companies that are willing to invest in Mozambique.
The Business opportunities in Mozambique meeting brought together public and private sectors, project developers and global financiers to discuss the opportunities for investment into Mozambique’s power sector.
Targeted sessions focusing on gas, renewable energy and regional interconnectivity provided a platform for the development of the off-taker market in support of the country’s ‘Vision 2025′ development plan.
The meeting took a closer look at the different financing models available to support industry developments and strengthen public-private partnerships, and feature case studies by implementers and their partners.
Recent political developments in Mozambique mark the beginning of an important era. The party of government, the Mozambique Liberation Front (FRELIMO), is clearly anxious to back the newly elected head of state, Filipe Nyusi, who – following an initial tussle with his predecessor – is apparently keen to open a different style of dialogue with his rivals both among the country’s opposition parties and within FRELIMO itself. This apparent political maturing comes at a time when the prospect of significant economic transition is gaining ground.
Foreign investors are committing to Mozambique, and this can only have been encouraged by recent political developments. Of particular note has been the arrival of the liquefied natural gas (LNG) industry in the context of some globally significant offshore gas finds in the north. Despite likely high development costs, the market for LNG is strong – especially in East Asia. Looking ahead by some years to 2020–25, LNG markets in the United States and Europe should also become more attractive, as domestic production winds down in the former and North Africa’s supply to Europe begins to dwindle. The long-term view of Mozambique’s LNG prospects is good – albeit more modest than spectacular. In addition to LNG development, there are significant investments under way in agribusiness (biofuels production), coal, non-hydrocarbon minerals and fisheries.