Investment Climate Dynamics and FDI Attraction in Mozambique: An Analytical Review

Investment climate in Mozambique has been a subject of interest for scholars and policymakers alike due to its potential to attract foreign direct investment (FDI). The country's economic development and structural changes have influenced the investment environment, creating opportunities and challenges for investors. The review synthesizes empirical studies, policy documents, and academic articles published between and , focusing on methodologies that analyse economic indicators, regulatory frameworks, and socio-economic conditions affecting investment climate in Mozambique. Key findings indicate a positive correlation between improved infrastructure development and increased FDI inflows into Mozambique. The proportion of FDI directed towards the manufacturing sector has risen significantly over recent years, reflecting favorable policy changes favoring industrial growth. The reviewed literature underscores the importance of consistent regulatory stability and infrastructure improvements in enhancing Mozambique's attractiveness as an investment destination for foreign investors. Policymakers are advised to continue investing in public sector reforms, particularly in areas such as education and healthcare, which can positively impact investor confidence and FDI attraction. Additionally, targeted incentives should be implemented for sectors with strategic importance to the country's economic development.