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5 - Continuities and discontinuities in manufacturing

Published online by Cambridge University Press:  22 September 2009

M. Anne Pitcher
Affiliation:
Colgate University, New York
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Summary

Industry is the dynamising factor for economic development.

Third Frelimo Party Conference, 1977

Industry must develop a dynamic, modernising role in the economy, stimulating its qualitative transformation and growth.

Ministry of Industry, Trade, and Tourism, 1997

The sale of state enterprises in the manufacturing sector accounts for about half of all privatizations that have taken place in Mozambique. The government has sold breweries, bottling plants, textiles, plastics, and chemical factories. These companies produce mainly for the domestic market but have the potential to export abroad. While Mozambican nationals have purchased the majority of enterprises, foreign investment accounts for much of the value of total investment. It is concentrated in large factories such as brewing or bottling that dominate their respective sectors. In addition, many major new projects that are underway or that have been proposed contain significant foreign investment. As of 1999, approximately $6 billion has been pledged for these projects, and if the investment is fully realized, it will exceed the investment by those companies that have bought existing firms. The new projects include the creation of road and rail transport corridors linking ports in Mozambique with South Africa, Zimbabwe, and Malawi. The purpose of these corridors is to foster free trade zones and to encourage the growth of industry along the route. The government also is promoting iron and steel projects in Maputo and Beira, eco-friendly resorts, and the construction of petro-chemical plants.

Type
Chapter
Information
Transforming Mozambique
The Politics of Privatization, 1975–2000
, pp. 179 - 206
Publisher: Cambridge University Press
Print publication year: 2002

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