“We are always vigilant about our business environment, and clearly, these two recent major announcements contribute significantly to the onset of confidence. Markets thrive on trust and precision, and I believe our country is currently progressing towards solidifying that confidence,” stated João Figueiredo, President of the Portugal-Mozambique Chamber of Commerce, in an interview.
The businessman spoke on the sidelines of the 20th Annual Private Sector Conference (CASP) concluding today in Maputo. He highlighted that Mozambique’s removal from the international “grey list,” which includes countries challenged with combating money laundering and terrorism financing since 2022, and the lifting of the “force majeure” clause by TotalEnergies concerning a $20 billion (€17.2 billion) gas megaproject after four years due to terrorist attacks in Cabo Delgado, increase Portuguese investment confidence in the country.
“These two news items present a turnaround in our economic state. Post-election, we faced many challenges, with over a thousand companies closing and thousands of jobs lost,” he remarked on the broader impacts of five months of nationwide post-electoral protests.
Regarding the business climate, Figueiredo mentioned that relations between Mozambique and Portugal are “greatly facilitated” following visa ease, calling for “reciprocity” in supporting Mozambican investments in Portugal.
“We will have another Portugal-Mozambique bilateral summit on the 8th and 9th of the coming days. While there are still not many details, we are hopeful that it will bear positive results following these improvements the country has experienced (…) I believe our country now has the conditions or greater conditions to attract foreign investment,” Figueiredo added.
The businessman called for enhanced security to curb crime, particularly the abduction of entrepreneurs, praising government efforts to tackle this issue.
However, a lack of access to foreign currency remains a pervasive problem. “The issue of currencies is a serious problem (…) it impacts the entire country’s economy and can be resolved in two ways: either we start producing more and exporting more, or we need foreign investment capital to ensure more available currencies, but the first part is always better,” he stated.
Rita Genésio, Commercial Director at the Portuguese firm Casa do Alumínio, which has operated in Mozambique for 10 years, employing 14 local workers, praised the current business environment at CASP, though lamenting the economic harms caused by post-election demonstrations.
“This year wasn’t exactly easy, it involved adjustments due to last year’s events, and we’re still restructuring the entire company framework. Nonetheless, we’re confident Mozambique will turn things around,” she noted, mentioning that during this period, the company found solutions to move their business forward.
“We’re based in Matola, living in different city areas separated from Matola; reaching the workplace wasn’t easy. We faced several challenges where our positions were questioned, but we’ve overcome them; however, we suffered in terms of sales, losing sales from our clients,” she added, pointing to reduced imports due to the crisis, also citing the issue of currency accessibility.
Casa de Alumínios plans to expand its business to other parts of the country. While currently based in the south, they want Mozambique to focus on local production to boost the economy.
“Mozambique relies on imports, but we think much can be done locally. This requires investment, but people are reluctant to invest due to the country’s economic and social instability,” she remarked, urging the government to fund local production initiatives.
“The issue of kidnappings, we’ve been here for ten years, it’s been discussed for a decade, and it continues to happen. We’re basically managing,” she said.
The Commercial and Investment Bank (BCI), the country’s largest bank owned by Caixa Geral de Depósitos, views the business environment in Mozambique as “promising,” pointing to ongoing reforms in various sectors that could bring “significant benefits to the economy.”
“There are great prospects for a better future for the country’s economy. Also, Mozambique’s exit from the ‘grey list’ is another positive indicator, creating conditions for an economy that thrives and can yield significant benefits for the country,” stated Eisler Castelo David, Public Relations Director at BCI.
Hence, BCI intends to continue supporting Micro, Small, and Medium Enterprises, aiming to contribute to economic growth.
“I believe the constraints [in Mozambique’s economy] are associated with the economy as a whole, and as a bank operating in this market, we’re not immune to these challenges, these constraints, which I believe we’ll overcome. As mentioned, the outlook is promising, and we’ll work to create conditions for our economy to grow and thrive without hindrance,” he concluded.
