Mozambique presents a growing opportunity for Swiss and Liechtenstein exporters, particularly in the energy sector, with significant investments in liquefied natural gas (LNG) projects poised to drive economic growth and demand for specialized goods and services. However, navigating its economic challenges requires strategic planning and risk management.
Mozambique's economic landscape is shaped by its substantial natural gas reserves, with major projects like Eni's Coral Norte and Total Energies' Mozambique LNG Project leading the way. These initiatives, valued at billions of dollars, are set to transform the country into a major LNG exporter, creating demand for Swiss expertise in engineering, technology, and environmental management. Despite these opportunities, Mozambique faces economic hurdles, including a high prime lending rate of 18%, a deteriorating GDP growth rate, and a significant fiscal deficit. Moreover, the country's foreign exchange backlog and high government debt levels necessitate careful financial planning for exporters. Success in this market will depend on understanding the local economic conditions, leveraging Swiss technological strengths, and building resilient supply chains to mitigate risks.
No
Free Trade Agreement
There is a free trade agreement between Switzerland and this country. Source: State Secretariat for Economic Affairs SECO
0.17 0.17 billion
Total trade flows
Total goods traded with Switzerland (imports + exports). Source: UN Comtrade. Data as of 2023.
13.26 13.26 %
3-year GDP growth
Total real GDP growth over the last three years. Source: World Bank. Data as of 2023.
Mozambique’s fast-growing LNG industry is reshaping the investment landscape. Companies that combine a strong understanding of local operating, security and compliance realities with capabilities in mining, services, equipment and logistics infrastructure will be best positioned to capture opportunities across the country’s broader resource-driven growth.
Stéphanie Labité
Head of Swiss Business Hub Southern AfricaLatest insights
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FAQs
What is the current economic situation?
The current economic situation is challenging, with Mozambique experiencing a marked deterioration in economic performance in 2024. Annual real GDP growth has declined significantly to 2.2% from 5.5% in 2023, and the PMI reached a low of 46.4 in December 2024, indicating contraction. Exporters should be cautious of the high prime lending rate of 18% and the increasing government debt, which could impact financial stability and demand for imports.
What are the main export and import trends?
Swiss exporters should note that while exports have slightly declined by 1.0% annually, the import of traditional goods has decreased significantly by 14%, contributing to an overall 9.0% reduction in imports. This trend suggests a potential opportunity for Swiss exporters to fill gaps left by reduced imports, particularly in sectors like machinery and transport vehicles where China and South Africa are major suppliers. Additionally, focusing on high-demand export markets such as India and China, which are significant importers of natural gas and other commodities, could be beneficial.
What opportunities exist for Swiss companies?
Swiss companies have significant opportunities in Mozambique's LNG sector, particularly in supplying technology and expertise for projects like the Coral Norte and Mozambique LNG. Additionally, the development of the Port of Maputo's container terminal could benefit Swiss logistics and infrastructure firms. Furthermore, the Swiss financial sector could capitalize on the establishment of a sovereign wealth fund linked to Mozambique's extractive industry revenues.
Which sectors are most promising?
The extractive industry, particularly LNG projects in Mozambique, presents a promising sector for Swiss exporters. With significant investments like Eni's Coral Norte project and Total Energies' Mozambique LNG Project, there is a growing demand for technology, equipment, and services related to LNG production and infrastructure development. Additionally, the expansion of the Port of Maputo indicates increased logistical needs, offering opportunities for Swiss companies specializing in logistics and supply chain solutions.
What are the main challenges and risks?
Swiss exporters face challenges such as geopolitical instability and reputational risks, particularly in regions like Mozambique. The suspension of USAID operations in Mozambique could lead to significant economic disruptions, impacting Swiss businesses operating there. Additionally, the fallout from the Hidden Debt scandal involving Credit Suisse has made Swiss financial institutions more cautious, potentially affecting financing opportunities for Swiss exporters in Mozambique.
