African Coastal Management (Environmental/Earth Science) | 04 June 2002

Investment Climate Framework for Attracting Foreign Direct Investment in Mozambique: A Theoretical Approach

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Abstract

The investment climate in Mozambique is a critical factor affecting foreign direct investment (FDI). Despite significant natural resources and strategic geographical location, Mozambique has experienced fluctuating levels of FDI over recent years. Theoretical analysis, literature review, expert consultations have been employed to construct this framework. This framework highlights the importance of these factors in creating a conducive environment for FDI and provides actionable recommendations for policymakers. Policymakers are advised to focus on improving regulatory clarity, reducing bureaucratic delays, and enhancing investor protection mechanisms. Additionally, promoting regional economic integration could also attract more foreign investment by fostering trade networks within the region.