Mozambique Infrastructure+Projects

= Likely that Chinese investment in infrastructure will boost Mozambique to be one of the top Economic powers in Africa in next Decade =

Executive Summary:
It is highly likely that Chinese infrastructure projects in Mozambique will continue over the next five years due to the quickly growing Mozambique economy. The African Great Wall Mining Development Company has recently filed for a contract to explore heavy mineral sands in the Chinde, Inhassunge and Nicoadala districts of Zambézia province. The initial project will require an investment of USD 130 million and if they find strategic minerals, will also require construction of a terminal at the port of Quelimane, improvement of local roads and other social projects . The Maputo to Catemba bridge project (KaTembe) which is estimated to cost over USD 725 million to complete was recently taken over by the Chinese because Portugal could no longer fund the project.The China Road and Bridge Corporation (CRBC) is in charge of the project that is estimated to be completed in 2015. Along with this project in Mozambique's capital city, there are many other infrastructure projects involving Chinese interest abroad that will contribute to more efficient processes within Mozambique.

Discussion:
The Investment Promotion Center has approved 11 Chinese Projects for the first half of 2013. The discovery of the largest reserves for natural gas in the past decade has already seen billions of dollars in foreign direct investment (FDI) and will see more. The vast amount of natural resources in Mozambique presents countries with the opportunity to invest in the country. Mozambique expects more than USD 3.2 billion dollars of FDI by private companies in 2013 which is an 11 percent increase from 2012. The country is now receiving enough FDI that infrastructure projects are improving all areas of production (strategic minerals, natural gas) and allowing the country to advance economically. In October of 2012, the Chinese Anhui Foreign Economic Construction Group Co. Ltd handed over the Maputo International Airport to the Mozambique airport authorities, which cost an estimated USD 36 million. In October of 2000, China's International Cooperation Group (CHIC O) was awarded a USD 45 million contract to construct supply routes in the central province of Manica. This project will include various infrastructure projects such as water treatment stations and roads.

Analytic Confidence:
Analytic confidence for this assessment is medium. Source reliability ranges from medium to high. There is no conflict between sources. The analyst had low expertise, worked alone, and did not use structured analytic methods. The subject is moderately complex and the deadline was easy to meet.

Analyst:
Sean Dailey sdaile35@lakers.mercyhurst.edu