Resource information
Private investment is critical to Mozambique’s development strategy.
Investment can stimulate the rural economy by helping to modernize the
agriculture sector, provide rural employment, and establish new markets
and market linkages. Private investment can fund the development of
Mozambique’s natural resources, the establishment of rural infrastructure, and the development of its tourism sector. Private investment can also cause enormous harm. Ill-considered projects may displace communities, disrupt or marginalize smallholder farming, and degrade natural resources. Mozambique’s land laws seek to protect local rights over land and resources while explicitly encouraging investment. This investment must, however, be environmentally sustainable and benefit local communities. The law requires investors to consult with local communities before they can obtain rights for investment projects. These consultations are designed to ensure that both sides reach an agreement that will mitigate the impact of losing the land and even generate new opportunities for local people.
