LUSA 11/04/2025

Lusa - Business News - Mozambique: Economic growth comes after post-election protests - minister

Vilanculos, Mozambique, Nov. 3, 2025 (Lusa) - Mozambique's Economy Minister Basílio Muhate said on Monday that the country is following a path of economic growth after Covid-19, climate effects and post-election demonstrations, influenced by the attraction of qualitative investments, such as in tourism.

"Despite the effects still arising from the Covid-19 pandemic, the global economic climate, as well as the effects caused by the demonstrations, Mozambique has been following an economic growth trajectory, driven by the promotion and attraction of qualitative investments and a positive impact on industry and tourism," said Muhate.

He was speaking in Vilanculos, in the southern province of Inhambane, at the opening of the first tourism summit in Mozambique, a two-day event that brought together more than 300 international guests.

Mozambique's growing economic trajectory, according to Muhate, is also influenced by investments in infrastructure, agribusiness, energy, transport and communications.

"Our government has taken on the sustainable development of tourism as an economic centrepiece that has to improve our balance of trade and investment, given its impact on infrastructure," said the minister, stressing that these impacts are decisive for generating employment and self-employment for young people.

Basílio Muhate explained that the Mozambique government's national development strategy (2025-2044), as well as the government's current Five-Year Programme (PQG), place tourism as one of the priority areas for development, which exposes and reveals Mozambique as a safe and attractive destination for investment due to its strategic location, opportunities and available facilitation services.

 "The government wants tourism, as a path to sustainability, to turn Mozambique into a world reference destination," said the minister.

 Mozambique's revenue from foreign tourists exceeded €200 million in 2024. Still, the government expects to reach €360 million in 2029, with the sector's contribution increasing to 6% of Gross Domestic Product (GDP), according to previous government information.

 "Attracting major international events, positioning the country as an attractive destination for business and event tourism and other investments" and "promoting tourism marketing mechanisms, with a strong focus on the digital component" are some of the priorities defined by the government for the sector in the 2025-2029 PQG.

 This is the first PQG from the government led by President Daniel Chapo, a document that has since been approved by parliament and which points out that the volume of revenue from international tourism totalled more than $221.2 million (€191.5 million) in 2024, with a target of $391.9 million (€339.6 million) in 2029.

 According to government forecasts, tourism's contribution to GDP should rise from 4.02% in 2024 to 6.0% in 2029, at the end of this PQG, with the number of workers employed in the sector growing from 14,603 to 22,115 over the same period.

 In 2021, the sector was worth 2.46% of GDP and two years later the number of arrivals in the country soared to more than 870,000, 87% coming from the African continent and 6% from Europe, namely Portugal, boosted at the time by the decision to waive visas for tourists from 29 countries, as part of the economic acceleration measures defined by the government.

SYCO/ADB // ADB.

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