African Small Business Management | 13 December 2001

Investment Climate Variability and FDI Attraction in Mozambique, 2001

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Abstract

This study examines the investment climate in Mozambique over a decade, focusing on its impact on Foreign Direct Investment (FDI). The study employs a comparative analysis, examining data from Mozambique's Investment Climate Assessment reports for the period -. A notable finding is that improvements in regulatory frameworks led to an increase of approximately 35% in FDI inflows over the decade. The investment climate significantly influences Mozambique's ability to attract FDI, with regulatory reforms being a key driver of increased foreign investment. Policy makers should continue to improve and stabilise regulatory environments to enhance Mozambique’s attractiveness as an FDI destination.