Oxford Economics warns that donors and international investors may withdraw financial support to Mozambique if instability continues beyond the first quarter, due to the "oppression" of the government.

The demonstrations that followed the announcement of the election results by the National Electoral Commission and which were called by presidential candidate Venâncio Mondlane, led to the withdrawal of some investors

In an interview with DW, economist João Mosca stresses that "in a country at high risk of instability and misrule, it is natural for investors, especially large-volume investors in areas that are very important for the economy of Mozambique and also of their countries, to remain guarded, waiting for new developments."

Mosca assured that, at the moment, it is very difficult to define what will happen in the near future. "That's why it's totally logical for foreign investment to be put on hold."

The economist recalls that Mozambique is excessively dependent on foreign funding, international cooperation, donations and loans. This dependence amounts to around 60% of GDP, which Mosca describes as a very heavy burden for the country.

Regarding the consequences of a reduction in foreign investment in the medium term - Mosca says that this investment is not expected to remain on hold, and considering the effects that have been felt in the industrial, tourism and transport sectors, "the economy is not expected to recover in the near future."