In the first quarter of 2024, Mozambique saw a 10.6% reduction in the flow of Foreign Direct Investment (FDI), which totaled 650.5 million dollars compared to the same period in 2022.

According to the data contained in the quarterly Balance of Payments (BoP) bulletin, released yesterday, Monday (29), by the Bank of Mozambique (BdM), which the MZNews had access to, the drop was influenced by the reduction in investments in the extractive industry, especially in Major Projects (GP) by 25.9%.

In terms of sector distribution, the BoM report indicates that in the first three months of 2024, the extractive industry maintained its position as the largest recipient of investment flows, receiving a total of 489.2 million dollars, which corresponds to 75.2% of total FDI, 29 % less than in the same period in 2023. Investment to finance gas exploration operations stood out at 280.3 million dollars, corresponding to 57.31 T3T of FDI in the extractive industry, followed by the areas of coal prospecting, heavy sands, among others.

In addition, the central bank points out that the manufacturing industry with an inflow of 56.7 million dollars, equivalent to 8.7% of total FDI, as well as the electricity, gas and water production and distribution sector with 50.5 million dollars, also stood out.

Breaking down FDI by instrument, investment in the form of "Other Capital", although down on the first quarter of 2023, remained the main form of FDI at 599 million dollars, representing 92.1% of total FDI.

"The decrease in FDI recorded in Other Capital, by 14.6%, was due to the slowdown in the mobilization of resources in the form of loans and commercial credits by the GPs. On the other hand, the 93.9% increase in FDI in the form of Shares and Participations was due to companies not belonging to GPs, with 51.5 million dollars recorded, equivalent to 7.9% of total FDI," the document states.

The bulletin highlights, however, that South Africa was Mozambique's main FDI partner, with a weight of 39.1%, followed by Mauritius, the United States of America, the Netherlands and the United Arab Emirates, with a weight of 45.7%, 39.4%, 8.8%, 8.1% and 2.4% of the country's total (net) FDI, respectively.

(Photo DR)