Resource investment outlook in Mozambique.
Extractive sector development centred on coal and natural gas lie at the heart of government plans to drive long-term, inclusive growth. However, depressed market conditions for these commodities are pushing anticipated resource revenues further into the 2020s. Final investment decisions for the nascent liquefied natural gas (LNG) sector are now two years behind earlier schedules, while coal market prices are dampening investor appetites on funding export infrastructure.
Contract risks are rising as the government uses its anti-corruption body to probe deals made under former President Armando Guebuza.
However, the Guebuza faction of the ruling party retains influence, raising fears about government stability.
Sectors facing greatest contract risks include construction (including Portuguese firms) and utilities guilty of poor service delivery.
