MozaMbique: options for Multi-sector approaches to fDi

The document examines Mozambique's reliance on FDI and overseas development assistance (ODA) for post-war reconstruction. While megaprojects in extractives and infrastructure have driven GDP growth, the paper highlights a disconnect between this growth and human development indicators. It analyzes the legal frameworks governing mining and hydrocarbons, the impact of coal and natural gas projects, and the challenges of agricultural development through initiatives like ProSAVANA. The author argues for leveraging the technology and infrastructure of the extractive sector to support agriculture and local community prosperity.

• Mozambique is the largest recipient of overseas development assistance (ODA) in Africa, with ODA financing approximately 50% of government spending.
• Despite strong GDP growth between 2003 and 2012, Mozambique's human development remains low, ranking 180 out of 188 countries in the 2014 Human Development Index.
• Foreign direct investment (FDI) is a primary growth driver, though it saw a 28% decline in 2015 from 2013 record levels, totaling $4.2 billion (22% of GDP). South Africa and India are the most prominent investing countries.
• The 2014 mining law (Law No. 20/2014) aims to increase local participation and requires that mineral processing be done domestically where economically feasible, though it may prioritize mining land use over customary rights.
• The Moatize coal developments in Tete Province, involving investments of nearly $12 billion by Vale and Rio Tinto, have spurred regional development but face challenges regarding community relocation and the utility of infrastructure for the general population.
• Mozambique possesses an anticipated 200 trillion cubic feet of natural gas in the Rovuma Basin, with the first LNG exports expected by 2018 or 2020.
• The ProSAVANA programme, a trilateral effort between Mozambique, Brazil, and Japan, aims to transform 14 million hectares of peasant farming into large-scale export operations, but it has faced opposition from the National Peasants’ Union due to concerns over land-grabbing.
• There is a strategic opportunity to integrate FDI in mining and agriculture to overcome agricultural challenges such as lack of power, transport infrastructure, and outdated technology.

APA

WentWorth, L. (2016). MozaMbique: options for Multi-sector approaches to fDi. South African Institute of International Affairs. https://saiia.org.za/wp-content/uploads/2016/08/Occasional-Paper-237.pdf

Chicago

WentWorth, LesLey. MozaMbique: options for Multi-sector approaches to fDi. South African Institute of International Affairs, 2016. https://saiia.org.za/wp-content/uploads/2016/08/Occasional-Paper-237.pdf.

Wikipedia

{{cite report |last1=WentWorth |first1=LesLey |title=MozaMbique: options for Multi-sector approaches to fDi |publisher=South African Institute of International Affairs |date=October 2016 |url=https://saiia.org.za/wp-content/uploads/2016/08/Occasional-Paper-237.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{wentworth2016mozambique, author = {WentWorth, LesLey}, title = {{MozaMbique: options for Multi-sector approaches to fDi}}, institution = {South African Institute of International Affairs}, year = {2016}, month = oct, url = {https://saiia.org.za/wp-content/uploads/2016/08/Occasional-Paper-237.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }