The Promotion of Foreign Investments – A Strategy for Sustainable Economic Development

Foreign direct investment has been widely recognized over the past decades as a major contributor to growth and development. It can bring capital, technology, management know-how and access to new markets. In comparison with other forms of capital flows, it also tends to be more stable, with a longer-term commitment to the host economy.The general policy framework for the promotion of investments in Mozambique has improved greatly in recent years, a trend that is backed the new provisions of the 2004 constitution and important legal reforms. However, it would be also fair to state that the environment for foreign investments protection is still inadequate to attract high quality and efficiency-seeking investments and the incentive framework continues to suffer from a number of deficiencies.Faced with increased international competition, foreign investors, in their global strategies, seek to maximize their competitiveness by locating facilities in multiple locations around the world. The lack of competitively in comparison with other global FDI destinations signifies that Mozambique is loosing development potential.In this increasingly globalized world, attracting foreign investment depends more on the ability to provide a favorable investment protection regime and competitive factors of production. The former requires a stable, efficient, and service-oriented environment that welcomes… Read full this story

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