Mbeki surprised not more has been made of country's economic progress. PRESIDENT Thabo Mbeki can hardly hide his frustration at how Mozambique's economic revival has gone unnoticed.
Delivering a speech at the official inauguration of Sasol's 1,2bn natural gas project in Inhambane in Mozambique last week, he said the extent to which the economy was growing had not been sufficiently publicised.
Business, though, has noticed the change, and is taking advantage of the new opportunities in the neighbouring country .
It is not a stampede yet, but local companies have realised Mozambique's potential as an investment destination. Shoprite, Famous Brands and Absa are already operating in the country, mainly the result of political stability in the country and support from the government.
To date, though, a lack of infrastructure development has meant Mozambique has not been able to take advantage of the large deposits of natural resources such as coal, natural gas, titanium, marble and tantalum.
The Sasol development shows, however, that South African companies and other investors from overseas are now prepared to invest large sums of money in the country.
President Joaquim Chissano has welcomed private sector investment with open arms, hoping to transform the sleeping resources into wealth, foreign investment and skills development.
After 17 years of gruelling civil war and famine it is time for his government to put the country's natural resources to good use.
"We believe this is the beginning of a new era of using gas that is environmentally friendly and will allow for savings of millions in foreign currency, and will lead to a more dynamic competitive industry," Chissano said.
The country still has an agriculturally based economy, and its exports comprise products such as seafood, fruit, sugar, tea, coffee and timber.
Sasol chairman Paul Kruger believes the gas-exploration project is positive for Mozambique as it will provide the country with a market for its gas .
Since February this year, Sasol has been extracting natural gas from the gasfields of Temane and Pande, and transporting it in a 865km high-pressure gas pipeline to the company's plants at Secunda and Sasolburg.
The gas will be used as a replacement for coal-based feedstock in the Sasolburg plant, where it turns coal and now gas into liquid fuels.
Sasol hopes to switch this operation from coal to natural gas by the end of this month.
While Sasol invested in the pipeline, the South African government and Mozambique have an option to buy half of it .
SA has said it will exercise this option in the next five years. It is likely to use its 25% in the pipeline to advance its empowerment drive in the fuels sector, through ring-fencing the stake for black investors.
Once rated as one of the poorest countries in the world, Mozambique's economy is picking up fast.
The pipeline runs along Swaziland's border, and it may be only a matter of time before the Swazis take advantage too.
"We know that Swaziland needs gas just like the other countries in the region. In this regard, we would like to reiterate our commitment to facilitate access by neighbouring countries to gas produced in Mozambique," Chissano said.
Another well-known investment in Mozambique is BHP Billiton's $1,3bn Mozal aluminium smelter near Maputo. The smelter has an annual aluminium output about 506000 tons, most of which is exported to the European market.
SA's Industrial Development Corporation owns 24% of the smelter while Mozambique's government is a 4% preferential shareholder.
The other shareholder is Japan's Mitsubishi.
Fonte: AIM
