Mozambique is one of the Southern African Development Community (SADC) members experiencing a steady economic growth in the region. Macroeconomic policy is deemed sound and the Gross Domestic Product (GDP) has been inching upwards. The country has been regularly ameliorating its investment law to fit the current good business environment requirements to attract more investors, especially foreigners. As a World Trade Organisation (WTO) member, a more open trade and business environment has been apportioned to Mozambique by the Trade Policy Review Committee.

While the business environment has improved, the question is whether the country’s economic performance should be attributed to foreign investment flow. Although a lot of investment facilitation has been done in terms of official documents, on the ground the reality might be different, as is the usual policy challenge in many developing countries. Hitherto, the country’s economy is more reliant on prevailing Official Development Aid (ODA) channeled by traditional donors into diverse development projects.

This paper seeks to delve into the investment regime of Mozambique. The main aim is to shed light on its contribution to economic performance in the country. In addition, the paper seeks to trace investment law implementation challenges, on the one hand, for the country, and on the other, for investors.

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