From the editor's desk
In 2020, The Business Year returned to cover the economy of Mozambique, in partnership with the Agency for Promotion of Investments and Exports (APIEX), after a four-year hiatus. Since 2016, the country has been coping with a series of difficulties, including a hidden debt scandal, local currency depreciation and an ensuing financial crisis, delays in gas projects, the beginning of an Islamist insurgency, and two destructive cyclones, all of which have kept Mozambique off the radar of international investors. While attention has temporarily worn off, all the conditions that made once Mozambique a “donor darling” and one of the most rapidly growing countries in the world are still present.
Encouraged by the favorable prospects of economic recovery, The Business Year decided to return to Mozambique in 2020 to cover the process of economic recovery and shed light on both opportunities and challenges. Through our fieldwork research, which comprised more than 130 in-depth interviews with key decision-makers across the economy, we were able to discover a young and dynamic business environment, highly adaptable and accustomed to the challenges it faces. We had the chance to dissect the great opportunities in the traditional pillars of the economy, from mining and gas to agriculture and tourism, and to unveil exciting new sectors with great potential: heavy mineral sands, renewable energies, industry, and high technologies. One sector that consistently attracted our attention was finance, which has held the economy together during multiple crises while pushing forward financial inclusion. Of course, the context of research this year could not have been any more different than any previous edition of The Business Year, due entirely to the negative impact of COVID-19 on the global economy. The Business Year quickly adopted its own safety practices, conducting interviews online and hosting a series of digital roundtables. During our research, we found a country that was quick to learn and adapt to the “new normal.” Despite the massive economic disruptions and challenges brought about by COVID-19, Mozambican businesses remained resilient, and the country as a whole has maintained a strong record in fighting the virus. Through online interviews, we have been happy to contribute to the continuation of business-as-usual, while making sure to spread awareness about best practices across the market in managing the pandemic.
And as we print, financing for the Mozambique LNG project in Area 1 has been secured— it is the biggest project financing effort in the history of Africa—and the country gears up, yet again, with rosy expectations for the future. Only time will tell how rosy this future will be. Nevertheless, we were privileged to observe and experience a country that, despite the discouraging preconditions and the immense challenges lying ahead, is highly determined to work hard and remain optimistic, awaiting a brighter future that seems to be getting ever closer.
In partnership with APIEX, we are proud to present you The Business Year: Mozambique 2020/21, a comprehensive publication highlighting all the main economic trends, opportunities, and challenges in this diverse country. ✖