African Development Bank weighs economic potential of Mozambique

The African Development Bank thinks the Mozambican economy may become one of largest in Africa when its production of natural gas peaks in 2028.

The bank forecasts in its Southern Africa Economic Outlook 2018 report that the annual rate of growth of the Mozambican economy will reach 24 percent, and that natural gas will account for half the expansion.

The report advises: “Mozambique should improve sector governance, put in place a policy framework, and provide fiscal incentives for investments in infrastructure to harness the benefits for inclusive development.”

Economic growth in Mozambique accelerated to 4.7 percent in last year from 3.8 percent in 2016 as mineral exports increased and agriculture performed strongly, the African Development Bank says.