Extractives and economic diversification in Mozambique: Will local content do the trick?

Organisation:
United Nations University World Institute for Development Economics Research (UNU-WIDER)

Since 2010 Mozambique has made international headlines because of its large offshore natural gas finds. The country has also large untapped reserves of other extractive and non-extractive resources, and it could gain from rising demand in minerals required for the global transition to a low-carbon economy.

The development of extractive industries is expected to contribute to economic diversification and social development of Mozambique, not least by increasing the demand for locally produced goods and services and providing jobs for local people. However, the prospects for these expectations to materialise seem rather remote.

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