Foreign direct investment (FDI) in Mozambique surged to €3.07 billion in 2024, the highest level in three years fuelled primarily by the country’s growing natural gas sector, according to new data from the Bank of Mozambique compiled by Lusa. The central bank’s statistical report shows that FDI increased by 41.6% compared to 2023, amounting to US$3.55 billion (equivalent to €3.07 billion), representing 16.1% of the country’s gross domestic product (GDP).
The extractive industry remained the dominant recipient of capital, attracting US$3.1 billion (€2.67 billion), or 87.2% of total FDI, marking a 37% increase year-on-year. The manufacturing sector received US$134.8 million (€116.5 million), doubling its intake compared to 2023 and representing 3.8% of total FDI. Meanwhile, the electricity sector saw investments rise to US$96.9 million (€83.7 million), also more than doubling year-on-year and accounting for 2.7% of total inflows.
The report attributes the rise in investment to the continued inflow of capital linked to large scale oil and gas projects, particularly hydrocarbon exploration in the Rovuma Basin. It also notes renewed momentum in the coal and heavy sands sectors. Further bolstering investor confidence, Eni CEO Claudio Descalzi announced on 11 June in Maputo that the Coral Norte floating liquefied natural gas (FLNG) project, Eni’s second platform in the Rovuma Basin has officially received government approval. “Coral Norte is the future,” Descalzi said, confirming that all development terms have been agreed, making the project “a real thing now.”
Mozambique has three major LNG development projects approved for the Rovuma Basin, one of the world’s largest offshore gas reserves located off the coast of Cabo Delgado. These include the still-suspended TotalEnergies project, delayed due to security concerns, such as ExxonMobil’s project, which awaits a final investment decision; and the operational Eni-led Coral Sul FLNG project, which began production in 2022.
On 8 April, the Mozambican government approved an investment of €6.6 billion for the Coral Norte project, expected to produce 3.5 million tonnes of LNG annually, starting in 2028. The initiative marks the second phase of Coral field development and includes a new floating liquefaction facility with six production wells. The project is valued at US$7.2 billion. Government spokesperson Inocêncio Impissa said the Coral Norte project would create 1,400 local jobs and include a succession plan to enhance the skills and participation of Mozambican workers in the oil and gas industry. Over the 30-year lifespan of the Coral Norte development, Mozambique anticipates generating US$23 billion (€20.1 billion) in revenue.
