Yesterday in Riyadh, President of the Federation of Saudi Chambers, Hassan bin Mujib Al-Huwaizi, and several Saudi businessmen met with a delegation of ministers from Mozambique, including Ministers of Agriculture and Public Works, and Deputy Ministers of Finance, Energy and Mineral Resources. The meeting was part of President Filipe Jacinto Nyusi’s visit to the Kingdom of Saudi Arabia.
During his address, Al-Huwaizi expressed his desire to strengthen the relationship between the private sectors of Saudi Arabia and Mozambique, with the aim of supporting growth in trade and investment exchange between the two countries. He also highlighted Mozambique’s advantageous positions in agriculture, mining, and tourism sectors, as well as the opportunities for investors in the Saudi economy under Vision 2030.
The meeting also focused on potential trade and investment opportunities between the Kingdom and Mozambique, specifically in the areas of agriculture, water, electricity, tourism, infrastructure, and mining.
Both parties agreed to establish a joint Saudi-Mozambican business council and form a Saudi business delegation to visit Mozambique to explore available investment opportunities.
Saudi Arabia has been increasingly focused on investing in African countries in recent years, and Mozambique has emerged as a particularly attractive destination for Saudi investment. The two countries have maintained friendly relations for many years, and have been exploring ways to strengthen their ties even further.
Mozambique is a country located in south-eastern Africa, with a population of approximately 30 million people. It is known for its rich natural resources, including coal, gas, and oil, as well as its agricultural potential. In recent years, Mozambique has been working to diversify its economy and attract more foreign investment, particularly in the areas of infrastructure and energy.
Saudi Arabia, for its part, has been looking to expand its investments beyond the traditional sectors of oil and gas. The Saudi government has been encouraging private sector investment in a variety of industries, including agriculture, tourism, and infrastructure, as part of its Vision 2030 economic reform plan. This has led to a growing interest in investing in African countries, including Mozambique.
In recent years, Saudi Arabia has invested heavily in Mozambique, particularly in the areas of infrastructure and energy. In 2018, Saudi Arabia’s ACWA Power signed a $2.3 billion deal to build a coal-fired power plant in the province of Nampula. The project is expected to have a capacity of 300 megawatts and will be the largest private investment in Mozambique’s history.
In addition to energy, Saudi investors have also been exploring opportunities in Mozambique’s agriculture and tourism sectors. The country has vast agricultural potential, particularly in the areas of cashew nuts, cotton, and sugar. Saudi Arabia’s Al-Rajhi Group has already established a joint venture with a local company to invest in Mozambique’s agriculture sector.
On the tourism front, Mozambique’s natural beauty and beaches make it an attractive destination for investors. Saudi Arabia’s Public Investment Fund has expressed interest in investing in Mozambique’s tourism industry, particularly in the development of luxury resorts and hotels.
Saudi Arabia’s investment in Mozambique has been growing steadily in recent years, and the two countries have been working to strengthen their economic ties even further. As part of this effort, the two sides have established a joint business council to facilitate trade and investment between Saudi Arabia and Mozambique.
The Mozambican government has welcomed Saudi investment in the country, and has been working to create a favourable environment for foreign investors. In 2019, Mozambique introduced a new investment law that aims to simplify the investment process and provide more incentives for foreign investors.
Mozambique has also been working to strengthen its ties with the Gulf Cooperation Council (GCC) countries, of which Saudi Arabia is a member. The GCC and Mozambique signed a memorandum of understanding in 2014 to strengthen economic cooperation between the two regions, and there have been several high-level visits between the two sides in recent years.
Saudi Arabia’s investment in Mozambique is part of a broader trend of increased investment in African countries. Mozambique’s rich natural resources and potential for economic growth make it an attractive destination for Saudi investors, particularly in the areas of infrastructure, energy, agriculture, and tourism. As the two countries work to strengthen their economic ties, it is likely that we will see even more Saudi investment in Mozambique in the years to come.
Image Credit: SPA
