Mozambique – Fertile land for investment

Mozambique’s economy is expected to gradually recover in 2021, but substantial risks of a downturn remain due to uncertainty surrounding the path that the COVID-19 (coronavirus) pandemic will follow. Although the economy registered its first contraction in almost three decades in 2020, growth is expected to recover in the medium term, reaching around 4% in 2022.

As noted in the recent Mozambique Economic Update (March 2021), the country needs to move forward with its structural reform agenda as the pandemic is easing. In the short term, measures to support viable businesses and families would be crucial for a resilient and inclusive recovery. In the recovery phase, policies focused on supporting economic transformation and job creation, especially for young people, will be critically important. Interventions aimed at supporting women and alleviating gender inequalities, as well as harnessing the power of mobile technology, can support sustainable and inclusive growth in the medium term.