Mozambique: The new economic reality

MOZAMBIQUE: THE NEW ECONOMIC REALITY

Tiago Dionisio, Chief Economist, delivers his analysis on Mozambique's economic situation for Capital Markets in Africa's June 2017 edition of Into Africa Magazine. The country's new economic reality presents several challenges for the local authorities, especially in the aftermath of the revelation of previously undisclosed public debts. However, Mozambique remains one of the most promising countries in Sub-Saharan Africa, where economic activity should continue to expand well above the average of the region. The natural gas sector will make a substantial contribution to economic growth and exports as well as bring in significant fiscal receipts in the long-term. Mozambique also has a successful track-record in implementing large-scale projects (most of which financed by multilateral institutions and international banks) and a friendly legal framework, namely for foreign investors.