A Systematic Review of the Investment Climate and Foreign Direct Investment Attraction in Mozambique: An African Perspective, 2010–2025

This systematic literature review synthesises empirical and theoretical research from 2010 to 2024 to critically analyse Mozambique’s investment climate and its efficacy in attracting foreign direct investment (FDI). The primary objective is to evaluate the determinants—both facilitators and impediments—of FDI inflows, offering an African-centred perspective on development through capital mobilisation. Adhering to the PRISMA framework, the methodology involved a rigorous search, screening, and quality assessment of peer-reviewed articles, policy reports, and institutional analyses from prominent academic databases. The findings reveal a dualistic landscape. Substantial natural resource endowments, particularly in liquefied natural gas, and preferential trade agreements are identified as significant FDI pull factors. However, these are substantially undermined by persistent structural challenges, including institutional fragility, bureaucratic inefficiencies, infrastructural deficits, and political instability. Crucially, the synthesis demonstrates that an over-reliance on extractive industries has fostered enclave economies with limited domestic linkages and socio-economic spillovers. The review concludes that for FDI to contribute meaningfully to sustainable development, Mozambican policy must transcend a passive reliance on resource wealth. It argues for the imperative of deliberate institutional reforms and strategic sectoral diversification to build a resilient, transparent, and broad-based investment climate capable of harnessing foreign capital for inclusive growth.