Investment climate in Mozambique has been a subject of interest for policymakers and scholars due to its potential impact on attracting Foreign Direct Investment (FDI). Recent studies indicate that a favorable investment climate can enhance economic growth and development. The study employs a qualitative approach to analyse existing literature and expert opinions, integrating theoretical models from international development studies and economic geography. This theoretical framework provides insights into the investment climate's role in attracting FDI in Mozambique, offering a foundation for future empirical research and policy recommendations. Based on this theoretical analysis, it is recommended that policymakers focus on strengthening governance structures and improving infrastructure to enhance Mozambique’s attractiveness as an FDI destination.