Mozambique’s Megaproject-Based Economic Model: Still Struggling with Uneven Development?

Abstract

Megaprojects in aluminium production, coal and natural gas extraction, and hydropower generation play a key role in the Mozambican economy. Based on the concepts of global value chains and linkages, this chapter shows that remarkable transformations are taking place in these sectors, including the expansion of production, the attraction of FDI and the emergence of new players from the Global South who now compete with transnational companies from traditional economic partner countries of Mozambique. The authors highlight potentials (in terms of economic transformation, especially positive side effects through the provision of electricity and rehabilitation of transport infrastructure) as well as drawbacks and limits to Mozambique’s megaprojects. The latter go beyond the low participation of domestic small and medium enterprises, comprising as well a variety of economic, political and social challenges. The chapter concludes with recommendations for improving the megaproject-based economic model.