Investment Climate and Foreign Direct Investment Attraction in Mozambique: An Ethnographic Study

Investment climates in Mozambique have been evolving since independence, with notable growth in foreign direct investment (FDI). However, recent studies have highlighted inconsistencies and gaps in understanding the factors influencing FDI attraction. The research employed a qualitative approach through participant observation, semi-structured interviews with key stakeholders including government officials, private sector representatives, and international development agencies. Data collection was conducted in urban and rural areas across Mozambique. Investors reported significant challenges such as infrastructure deficiencies and regulatory uncertainty but also noted opportunities like growing economic sectors like agriculture and tourism. Social networks played a crucial role in facilitating business introductions and partnerships. This study provides insights into the complex interplay between government, private sector, and social structures shaping Mozambique’s investment climate. It highlights both challenges and potential for improvement in FDI attraction. Government should prioritise infrastructure development and regulatory streamlining to enhance investor confidence. Strengthening local business networks can also facilitate smoother integration of foreign firms into the economy.