Doing Business in Mozambique Event & Mozambique updates

Political Landscape

While the recent elections triggered unrest, the situation has stabilized since January. A new five-year plan was put in place, albeit contested due to the exclusion of the main opposition party. Encouragingly, however, the new cabinet includes several technocrats with strong international and German connections.

Economic Outlook

Mozambique’s economy is projected to grow by 2.7% in 2024, with the potential to reach 5.5–7% in the coming years. Inflation is currently at 6%, and while fiscal space remains limited, reforms are underway to support inclusive growth.

Investment Priorities

The Mozambican government is focusing on high-potential sectors including agriculture, digitalization, renewable energy, mining, circular economy, and tourism. A new reform coordinator is helping streamline progress across ministries.

Opportunities for German Business

Mozambique continues to gain relevance for German companies, particularly in raw materials and agro-processing. The country’s geographic position and young population offer strategic advantages for long-term partnerships.

Mozambique presents both complexity and promise. There is political will for reform, and German companies have a unique opportunity to contribute meaningfully. However, continued dialogue, smart coordination, and strong public-private collaboration will be essential to unlocking sustainable success.

Status update from Mozambique (by Holger Hey)

The political situation has further stabilized and the president's first direct talks with the supposedly most important political opponent, Venancio Mondlane, have taken place successfully. This contributed significantly to further calming the political situation.

Economically, too, there is at least a return to stabilization, so that core activities have fully resumed; most of the elementary access points and strategic logistical corridors are functional, and everyday economic life has returned to its routine. Disturbances in individual provinces are still being mentioned in isolated cases.

The inflation rate is at least no longer rising and after the prolonged recession there are first signs of economic growth of almost one percentage point in the first quarter, which give hope and multiply the overall economic mood, as was also described in the economic briefing for the first quarter of 2025 by the CTA Business & Industry Association.

The 100-day plan is 'proclaimed' as largely successful, and a five-year strategic plan with many indicators and important projects for the development of the economy also gives hope. These include the fight against corruption, facilitating business visa and the transfer of goods, strong investment projects in infrastructure, expansion of industrialization and free trade zones, stronger investments in education and training, among others. Promoting small and medium-sized businesses and optimizing credit are on the agenda and overall, it has a positive, activist effect.

Total Energies is returning to activities in northern Mozambique in August, Exxon Mobile is investing significantly, German GAUFF is expecting one of the best years since established in Mozambique and Syrah Resources is also starting to produce graphite in Cabo Delgado again after more than nine months of standstill.

Nevertheless, it can also be stated that the ruling FRELIMO party continues to maintain essential attitudes and rhetoric of retention of power despite the clear signs from the population in the last few months of crisis, even if the new President Daniel Chapo communicates much more strongly and gives himself as open for dialogue and liberation. His speech at the presentation of the five-year plan was particularly future oriented, positive towards investment scenarios and also impressive in that he publicly condemned for the first time the clear corruption in governmental ranks and with clear reference to the decadence of the country's monopolistic airline, LAM, and announced that these times would now be over and cleaned up.

What remains worrying are the clear shortages of international currencies and the associated, sometimes enormous and crucial difficulties for local companies in payment transactions. A circumstance that continues to act as an enormous obstacle to investment and for which there are still no clear proposals for solutions from the government and all partners involved, including the central bank. After all, the topic is being debated very intensively within the Chamber of Commerce communities and proposed solutions are being developed.

Likewise, no solutions or proposals could still be identified for the recurring cases of entrepreneur kidnappings. The cases remain mostly unsolved and are largely very unclear, which leaves a lot of room for speculation. These circumstances also cloud an investment scenario and have long been leading to migration, especially of the once established middle class, from different countries of origin.

In the overall picture, however, the new government is making serious attempts and looking for solutions to at least stabilize the country's political, economic and social imbalances, and has already tried to stabilize them in some cases successfully and is looking for new ways to achieve more growth and investment also as industrialization and implementation of local content criteria. Laws are being actively reviewed, and a trend towards renewal is noticeable.

The number of delegations from abroad as well as events, congresses and trade fairs on specific sectors and topics has increased significantly. 

Also, we are happy to announce that there has been an increase of exhibitors from Germany at the 60th FACIM International Fair by end of August in Maputo, having 14 enterprises within the official German Pavilion, Quote from the President at the end of his 100 Day Plan speech: "We made omelettes without having eggs."