Josué Bila
The business environment in Mozambique has been shaped by different administrations over the years. In this article, we will briefly analyze the main challenges and opportunities faced by the country during the administrations of Joaquim Alberto Chissano, Armando Emílio Guebuza, Filipe Jacinto Nyusi and nowadays Daniel Francisco Chapo.
Joaquim Chissano’s Administration (1986-2005)
Transition to a market economy: During Chissano’s administration, Mozambique began its transition to a market economy with the implementation of economic reforms and the privatization of state-owned companies.
Foreign Investment: The Chissano administration attracted significant foreign investment, especially in the area of natural resources.
Challenges: The Mozambican economy faced significant challenges, including dependence on foreign aid and lack of infrastructure.
Furthermore, Chissano administration was overshadowed by practices of state squandering, which undermined the timid modernization of the state and the realization of basic rights in the areas of health, education, employment, housing and others. In 1990, former Prime Minister Mário Machungo, interviewed by Tempo magazine, pointed out that the elites of the ruling party had set up large-scale schemes to divert national wealth for the purposes of nepotism, privilege, and exaggerated and gross ostentation, findings that were later scrutinized in the academic works of Brazão Mazula (Democracia em África: O caso moçambicano), Carlos Castel-Branco (Economia Extractiva e Desafios de Industrialização em Moçambique) and M. Anne Pitcher (Party Politics and Economic Reform in Africa’s Democracies). Not only black elites grabbed state wealth, but also, to a large extent, Mozambicans of Asian and European origin, who benefited from the ‘privilege of light skin’ in our social system.
These elites and minorities in the public and private sectors have been an Achilles’ heel for those in the Mozambican middle and lower classes, not because of the ruling party, but because of new social integrations, such as obtaining a higher education degree, but with difficulties in finding employment or public office or other rights for allegedly not being part of FRELIMO.
Armando Guebuza’s administration (2005-2015)
Economic growth: During Guebuza’s administration, the Mozambican economy experienced significant growth, driven by the newest exploitation of natural resources and the construction of infrastructure.
Infrastructure investments: The Guebuza administration invested in infrastructure, including energy, transport and communications. Until today, Guebuza has been praising on many Mozambican corners for those achievements. For this reason, he has not been suffering horrible criticisms when we compare him with former President Filipe Nyusi.
Challenges: Corruption and inequality increased during the Guebuza administration, which generated criticism and concern.
Filipe Nyusi Administration (2015-2024)
Economic Challenges
The Nyusi administration faced significant economic challenges, including the financial crisis and hidden debts, which revealed that the history of our Republic is far from sophisticated ethics patterns, due to a multitude of political blunders in the 21st century.
Investments in Natural Resources: The Nyusi administration continued to invest in natural resources, including natural gas and minerals.
Unfortunately, neopatrimonial and nepotistic management undermined Nyusi’s governance on several levels: for those who wanted to be entrepreneurs – in the context of privatisation – it was simply impossible or difficult because they did not belong to the Nyusi family or privileged classes/families.
According to researcher Aldemiro Bande (Interesses empresariais no sector mineiro), work carried out at the Centre for Public Integrity, 2022), “Cosme Jacinto Nyusi, brother of the current President of the Republic of Mozambique (PR), is positioning himself as one of the strongmen in the mining sector in Mozambique, since 2015, when Filipe Nyusi took office as President of the Republic.
According to Bande, Cosme Jacinto Nyusi did not even have a business registration in his name. However, in 2017, the brother of the former head of state made his debut in the business world through the company Maganhux, Lda1, dedicated to providing services in the electricity sector. Between 2019 and 2022, Cosme expanded his investments into the mining sector, registering at least three companies in the same sector in his name during this period. In addition, the former President’s brother acquired business interests in the same sector.
Remaining challenges: Security is a significant challenge in Mozambique, especially in areas such as Cabo Delgado, where there is a jihadist insurgency.
Daniel Chapo’s administration (2024-present)
Challenges: Chapo’s administration faces significant challenges, including the need to promote economic stability and security in the country.
Opportunities: The Chapo administration has the opportunity to implement policies that promote economic diversification and poverty reduction.
Conclusion
The rise of politically exposed figures – public office holders, their family members and close associates – in the business world, and in the mining sector in particular, is standard practice in Mozambique. This was the case during Joaquim Chissano’s administration, continued under Armando Guebuza, and the practice has been repeated under Filipe Nyusi’s administration. Cosme Nyusi’s business career, writes Aldemiro Bande, fits this pattern: an insignificant figure in the business world, who, since his brother rose to the position of PR, has started to set up companies and acquire business interests in the mining sector.
The business environment in Mozambique has been shaped by different administrations over the years. Each administration has faced significant challenges, but has also created opportunities for economic growth and development. It is essential that the current and future administrations prioritize economic stability, security and poverty reduction to promote a more attractive business environment for investors and companies.
