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OECD Investment Policy Reviews: Mozambique 2013

image of OECD Investment Policy Reviews: Mozambique 2013

OECD's comprehensive review of investment policy in Mozambique.  After a country overview, this report examines investment policy, investment promotion and facilitation as well as infrastructure in Mozambique.

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Overview of investment policy challenges and recommendations for Mozambique

Mozambique has made marked progress in recent decades in terms of liberalization of its economy and improvement of its investment framework. This overview first provides a short description of the macroeconomic environment and investment policy context in Mozambique, taking stock of Mozambique’s fundamental investment, privatization and business reforms. Second, it gives an overview of investment and growth trends over the last two decades. This helps shed light on dominant policy challenges faced by Mozambique in attracting investment across all economic sectors. Among other obstacles, many aspects of the investment policy framework remain insufficiently transparent and do not provide effective safeguards of policy predictability for both foreign and domestic investors. After years of successfully attracting investment into capital-intensive mega-projects, Mozambique now needs to diversify in more labour-intensive sectors such as agriculture and tourism, and to also increase business linkages in the mega-project sectors themselves. In order to facilitate this, many large infrastructure gaps will need to be addressed. Finally, this overview chapter provides recommendations for policy options to prioritise. These recommendations should assist the government of Mozambique in improving the general investment climate, notably so as to enhance its diversification strategy and stimulate greater investment in infrastructure.

English

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