Mozambique saw FDI rise 37.5% to US$2.532 billion in H1 2025

Foreign Direct Investment (FDI) in Mozambique increased by 37.5% in the first half of 2025, reaching US$2.532 billion, driven by large-scale projects (LPs) and concentrated in the extractive industry, according to official data. According to the latestbalance of payments reportfrom the Bank of Mozambique, the extractive industry attracted US$2.361 billion, remaining the main destination for foreign capital. The oil and gas sector absorbed around US$1.8 billion, while coal extraction accounted for US$0.448 billion.

The increase in FDI — compared with US$1.841 billion in the same period in 2024 — was mainly supported by the expansion of financing operations for the LPs, essentially associated with mineral resource extraction, in the form of supplies and trade credits, while shares and equity participations totalled US$0.261 billion, around 10% of the invested amount. Among the main countries of origin for FDI from January to June 2025, the Netherlands (36.3%) led the flows, followed by Italy (19.4%), South Africa (19.1%) and Mauritius (18.9%), reflecting the diversification of capital inflows across the extractive, manufacturing, real estate, and services industries. The growth of FDI contrasted with the worsening of the current account, whose deficit rose to US$1.366 billion in the first half of 2025, pressured by the deterioration of the services account, which recorded a negative balance of US$0.578 billion.

The goods account, however, showed an improvement year-on-year, with the deficit falling to US$0.263 billion due to an 8% drop in imports, which totalled US$3.872 billion, despite a 4.8% decline in exports to US$3.61 billion. The decrease in coal revenues in the first half of the year, influenced by operational constraints and falling international prices, was partially offset by increased sales of natural gas and aluminium, the report notes.