Given the increased need for natural gas production, it is expected that investment in the exploration of this resource will accelerate to an extent that will help generate resources to support Mozambique's macroeconomic stability. 

The projection was advanced by Fáusio Mussá, Standard Bank's chief economist, during the conference "Investment in Angola and Mozambique", promoted on the 26th, in Portugal.

"There is a growing global demand for natural gas, so it is urgent that new projects arise, particularly in Mozambique, to make it available to other countries," says Fáusio Mussá, warning, however, that taking into account that most of the population in this economy lives on subsistence agriculture, "a more inclusive economic growth requires the development of agriculture and agricultural sector value chains."

"Natural gas exploration can help Mozambique's macroeconomic stabilization, however, harmonious development of the other sectors of the economy, including agriculture, is needed for more inclusive and sustainable economic growth," he argues.

The economist foresees an average annual growth of 3.9% of the Mozambican economy, between 2022 and 2025: "The country maintains a high growth potential, however, an acceleration of investment in Mozambique is necessary for the Gross Domestic Product to grow at the level of its potential", says Fáusio Mussá, stressing that "the infrastructure deficit continues to be a barrier to investment that cannot be neglected".

"Considering the limited fiscal space that the Mozambican and Angolan economies present, governments have considered public-private partnerships (PPP) as an important vehicle to help develop infrastructure to support investment projects. These models allow for greater private sector participation in the economy, but there are areas and sectors where the private sector shows less interest in investing."

According to the chief economist "the IMF program will help accelerate structural reforms, improve fiscal transparency and management, including public debt, and encourage the return of direct GBS."

"The balance of payments remains vulnerable to external shocks, but should improve substantially as natural resource and energy sector projects move forward," he concludes.

It should be noted that, in the panel "Investment in Mozambique", in which Fáusio Mussá made these statements, the logistical challenges for Portuguese companies with a presence in Mozambique, gas as a factor for growth in the Mozambican economy, opportunities in terms of infrastructure and the need for investment in Mozambique were also addressed.

In general, the conference served to Standard Bank to show to Portuguese companies that want to invest abroad, that Mozambique and Angola are excellent markets, since they have the same language and close relations with Portugal.