These factors, along with an underdeveloped industrial sector, have limited Mozambique’s integration into the African Growth and Opportunity Act (AGOA). AGOA was reauthorized through December 31, 2026 with retroactive effect to September 30, 2025. 

The country’s industrial base remains weak, making it heavily dependent on imports of finished and semi-finished goods. To address this, the government launched the National Program to Industrialize Mozambique (PRONAI), which focuses on import substitution and establishing industrial and agroprocessing parks to move the country up the value chain.

Mozambique’s economy remains heavily reliant on agriculture, construction, and the financial sector. Despite employing approximately 70% of the population, the agriculture sector contributes only about 25% to GDP, largely because most Mozambican farmers are in the informal sector where they rely on subsistence farming practices. Commercial farms face challenges, such as inefficiencies related to land ownership and titling (DUATs), poor transportation infrastructure leading to geographic isolation, a lack of economies of scale, and limited value-added processing, compounded by stringent government regulations and informal taxes. These factors, along with an underdeveloped industrial sector, have limited Mozambique’s integration into the African Growth and Opportunity Act (AGOA). AGOA was reauthorized through December 31, 2026, with retroactive effect to September 30, 2025. 

The country’s industrial base remains weak, making it heavily dependent on imports of finished and semi-finished goods. To address this, the government launched the National Program to Industrialize Mozambique (PRONAI), which focuses on import substitution and establishing industrial and agro processing parks to move the country up the value chain.

Mozambique’s foreign direct investment (FDI) is largely concentrated in the extractive sectors, particularly in mining.  The country’s abundant mineral reserves include coal, gold, rubies, and critical minerals like lithium, graphite, and rare earth metals. FDI in the country slowed considerably after 2015 due to a drop in commodity prices, especially for coal and aluminum. However, the government is now focused on increasing the extraction of critical minerals needed for global energy transformation. 

Tourism has also been identified as a key growth sector. Mozambique’s pristine beaches and national parks, rich in wildlife, offer significant potential. In 2023, the government introduced a visa waiver for tourists and business travelers from the United States and 28 other developed countries to stimulate tourism, and an e-visa system designed to facilitate visits from other destinations. Most airline connections to the United States are from South Africa, Ethiopia, Qatar, UAE, and Portugal. For more information about U.S. citizen travel to Mozambique, please see Mozambique Travel Advisory.

Several megaprojects are expected to drive Mozambique’s economic growth over the next few decades, providing both direct and indirect business opportunities. These include the construction of two large onshore liquefied natural gas (LNG) liquefaction projects, under international consortia led by TotalEnergies and ExxonMobil/Eni with an estimated combined investment of $50 billion. Exploration by ExxonMobil, ENI, and others is expected to open further opportunities in the oil and gas sector. 

However, terrorist activity in Cabo Delgado since 2017 has delayed the development of these large-scale LNG projects, although a smaller floating LNG platform Coral Sul operated by ENI commenced production in late 2022. In March 2025, the U.S. EXIM bank board unanimously voted to re-approve their $4.7 billion loan to the Area1 TotalEnergies project. In September 2025, Eni announced its Final Investment Decision for a second FLNG vessel worth over $7 billion. Recent developments indicate momentum in the LNG sector, including ENI announcing Final Investment Decision for the Coral Norte FLNG project in early October 2025, TotalEnergies lifting Force Majeure (FM) in late October 2025, and ExxonMobil lifting FM in November 2025.  

Mozambique’s energy infrastructure remains underdeveloped, especially in rural areas. The country’s electricity grid is fragmented, with limited transmission capacity between the northern, central, and southern grids. In some regions, businesses rely on backup generators due to intermittent power supply. Despite these challenges, the government is committed to fully electrifying the country by 2030, focusing on large-scale generation projects, transmission and distribution improvements, and renewable microgrids such as rooftop solar. Mozambique holds significant potential for hydropower, with the Mphanda Nkuwa Hydroelectric Dam on the Zambezi River set to add 1,500 MW of capacity, building on the success of the Cahora Bassa Hydroelectric Dam, which generates 2,075 MW. The country also holds potential for gas to power projects, with the current construction of the 400MW Temane power plant, set to be completed in 2026. 

Although internet access remains limited, with less than a quarter of the population online, the COVID-19 pandemic accelerated Mozambique’s digital transformation. The demand for ICT solutions, including cloud computing, data storage, and cybersecurity, surged as businesses, education, and health services adapted to social distancing requirements. This has created opportunities in ICT infrastructure, particularly in digital payments and automation.

Mozambique’s critical mineral sector presents a compelling opportunity for U.S. companies seeking to capitalize on the global energy transition. With abundant reserves of graphite, ilmenite, and rare earth elements critical for defense and clean energy technologies, Mozambique could play a vital role in securing strategic mineral supplies. However, challenges such as complex regulatory frameworks, financial resource constraints, and competition from Chinese firms underscore the importance of strategic partnerships with local and international stakeholders.

Mozambique’s transportation sector is growing, fueled by investments in ports and roads, including the Millenium Challenge Corporation $500 million compact, which will enhance road/bridge infrastructure along the country’s main transport corridors. The country’s three major ports—Maputo, Beira, and Nacala—serve as critical transport hubs, connecting the interior of the continent with the Indian Ocean. Nacala, considered one of the best deep-water ports in East Africa, has substantial potential for further development. Upgrades to northern ports, like Pemba and Palma, are essential to support the growing oil and gas sector.

Key investment and export opportunities in Mozambique are concentrated in the following sectors:

•    Design & Construction: With ongoing infrastructure development, there are significant opportunities in designing and constructing roads, railways, ports and other urban development projects.
•    Franchising & Fast-Moving Consumer Goods (FMCG): As the middle class grows, demand for consumer goods and franchise businesses is expanding, particularly in retail, food services, and beverages.  According to Fitch Solutions “Mozambican households will steadily grow their spending on food, drinks…, driven by higher disposable incomes and great formalization of the sector.”
•    Information & Communications Technology (ICT): Digital transformation poses as national priority to drive the growth of digital inclusion. Such efforts create opportunities in the following areas: telecommunications infrastructure, cybersecurity, data centers, and digital payment systems.
•    Power Generation and Transmission: Mozambique possesses the highest power generation potential in Southern Africa, with project under development using hydro, gas, wind, and solar sources.
•    Mining: Mozambique’s abundant mineral resources, including coal, graphite, and rare earths, present strong investment potential in both extraction and value-added processing.
•    Oil & Gas: With major LNG projects underway and exploration in the oil sector, there are substantial opportunities in exploration, production, infrastructure, and the broader supply chain.

The government’s strategic focus on these sectors, coupled with large-scale infrastructure initiatives, is aimed at diversifying the economy and driving sustainable long-term growth.