Mozambique’s burgeoning tourism sector was a leading contributor towards new investments in 2023, attracting US$7.3 billion, equating to 42% of the country’s overall investment projects. And the sector could be set for explosive growth, with investors eyeing $1.7bn worth of additional new investment in the country.
Taking place in the capital of Maputo on May 16 and 17, the 19th Annual Private Sector Conference (CASP) showcased a portfolio of projects to high-nett-worth investors from 12 countries, including Mauritius, Saudi Arabia, Brazil, Portugal, the Netherlands, France, and Italy. Tourism and energy projects are amongst the main target areas for investment, according to Eduardo Sengo, DG of Mozambique’s Confederation for Economic Associations (CTA).
“All these businesspeople are looking for partnerships with Mozambican companies. They want to better understand the investment framework in the country, as well as explore the opportunities that have arisen with the recent reforms in the tourism sector,” said Sengo during a press conference at the event. Sweeping visa reforms, implemented under a set of economic stimulus measures announced by President Filipe Nyusi in 2022, have helped to galvanise the country’s tourism sector. In 2023, the sector contributed 8.9% to Mozambique’s GDP, compared with 7.4% in 2022.
Sengo said particular interest was being shown in tourism-related property projects in the towns of Macaneta and Bilene (just north of Maputo), and Ponta do Ouro on the country’s southern border with South Africa.
Minister of Industry and Commerce Silvino Moreno said the Inhambane and Nacala provinces further north were also attracting significant interest, underlining progress towards Mozambique’s tourism aspirations.
“This reflects our strategic vision of transforming Mozambique into a tourist destination of global excellence and having tourism and hospitality standing out as central pillars of the country’s economic development strategy.”
Speaking at the conference, Yvonne Mhango, Chief Economist at Bloomberg Africa, offered a positive outlook for Mozambique’s economy in comparison to other southern African countries.
“Growth of 3.8% is forecast for this year, driven by a series of reforms and investments in infrastructure and the non-mining sector. This growth is remarkable, especially considering previous economic adversities due to internal and external factors,” said Mhango.
In 2024, South Africa’s economy is expected to grow by just 1.2%; Botswana’s by 3.6%; Zimbabwe’s by 3.3% and Namibia’s by 3%.
