Investment climate plays a crucial role in attracting Foreign Direct Investment (FDI), especially for developing economies like Mozambique. A comprehensive review of existing literature to identify key determinants of FDI and their interplay within the Mozambican context. This theoretical model provides a robust foundation for policymakers to design strategies aimed at improving the investment climate and fostering greater FDI inflows into Mozambique. Policymakers should prioritise reforms that address key challenges, such as reducing bureaucratic hurdles and enhancing investor confidence through consistent policy implementation.