I. The Mozambican Investment Climate in 2025: A Strategic Overview

1.1. Executive Summary: The Business Case for Mozambique in 2025

Mozambique in 2025 presents a dynamic and increasingly favorable environment for foreign direct investment (FDI), underpinned by a coordinated strategy of legal and fiscal reforms. The nation's economy is undergoing a notable rebound, with the International Monetary Fund (IMF) projecting a 2.5% GDP growth for the year, primarily driven by a recovery in the services sector. This economic momentum is evident in the substantial inflow of foreign capital, with the government approving approximately US$5 billion in investment projects in the first half of 2025 alone, demonstrating a strong return of investor confidence. A significant portion of this capital, accounting for over 88% of total investment, has been directed to the Sofala province, signaling a concentration of large-scale, resource-driven projects outside the traditional administrative capital of Maputo.

This positive trajectory is not coincidental; it is the direct result of deliberate government policy to modernize the business landscape. The new Commercial Code, approved by Decree-Law no. 1/2022, serves as a cornerstone of this reform, introducing modern corporate structures like the Simplified Joint Stock Company (SAS) and streamlining corporate governance. Concurrently, the Investment and Export Promotion Agency (APIEX) has been established as a centralized "single focal point" to promote, manage, and facilitate investment and export processes, providing a streamlined channel for foreign investors. The legal and regulatory framework has been enhanced with a new investment law in 2023, offering a range of tax and customs incentives to attract capital into strategic sectors and less-developed regions. For prospective investors, the report details the most advantageous legal structures, provides a step-by-step guide to the registration process, and outlines the a complex framework of taxation, labor laws, and investment incentives that must be carefully navigated for success in the Mozambican market.

This renewed economic vitality is mirrored in the country's rising appeal to foreign investors. According to the United Nations Conference on Trade and Development (UNCTAD), Mozambique's rank for foreign direct investment inflows improved from sixth place in 2023 to fourth place in 2024, with inflows reaching US3.55billion.[3]Thefirstsixmonthsof2025alonesawtheapprovalof115investmentprojects,representingacumulativevalueofapproximatelyUS5 billion and with the potential to create 17,000 jobs. This momentum is concentrated in key sectors such as industry, transport, communications, and services. A noteworthy trend is the geographical concentration of these investments; a staggering 88% of foreign capital approved in the first half of 2025 was directed to the Sofala province, far surpassing investment in the traditional capital, Maputo. This concentration of large-scale, high-value projects in specific regions suggests that while Maputo remains the administrative and financial center, the primary business opportunities for substantial foreign capital are located in areas with strategic resources or infrastructure development. This necessitates a strategic focus on regional dynamics for any large-scale project.

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