“With its considerable mineral reserves, vast arable land, extensive coastline and harbours, transport corridors, and revenues from megaprojects in coal and gas, Mozambique has good prospects for advancing industrialisation,” writes Kasper Vrolijk of the German Institute of Development and Sustainability in a country report.
Constraints include “skills shortages, inadequate infrastructure and issues around the regulation of labour, access to land and finance, taxation, investment and customs”.
Governance constraints include corruption and government institutional capacity.
Despite the challenges, there are successes.
While commodities make up around 95% of total exports, value is added to 20% by Mozal aluminium in the form of ingots.
Since 2014, further value has been added locally by Midal Cables International, which exports aluminium wire and overhead conductors for power transmission and distribution.
Responses to global warming bring fresh opportunities.
“We have all the conditions to implement green industrialisation, which we have already started with – for example, the construction of the Mphanda Nkuwa hydroelectric dam and solar power projects all over the country."
Trade and Industry Minister Silvino Moreno told the 28th Conference of Senior Officials of the United Nations Council for Southern Africa (Uneca).
“The implementation of green industrialisation has the potential to generate environmental gains,” added Uneca regional director, Eunice Kamwemdo.
- Read the rest here: "Adding value through industrialisation."