Mozambique Seeks to Elevate EU Partnership Beyond Resource Extraction

By MOZTIMES

Maputo (MOZTIMES) – Mozambican President Daniel Chapo on Tuesday called for a new phase in Mozambique's relationship with the European Union, urging a partnership focused on industrialization, value addition and shared prosperity rather than the traditional export of raw materials.

Speaking at the opening of the second Mozambique-European Union Business Forum 2026 in Maputo, Chapo said the EU-backed Global Gateway initiative offers a strategic opportunity to accelerate Mozambique's economic transformation through investments in energy, agribusiness, digital infrastructure, connectivity and tourism.

“Today we want to raise this relationship to a new level through a partnership that goes beyond the extraction of resources and advances toward the creation of joint value,” Chapo told government officials, business leaders, investors and development partners attending the forum.

“We want a partnership that transforms economic potential into concrete prosperity for our peoples, the Mozambican people and the European people,” he added.

The two-day forum brings together representatives of the Mozambican government, European institutions, financial organizations and private-sector investors to explore investment opportunities in key sectors considered critical for the country's long-term development.

Chapo described the Global Gateway strategy as a natural fit for Mozambique, citing shared priorities that include energy transition, sustainable industrialization, regional connectivity, digital transformation, resilient infrastructure, human capital development and inclusive economic growth.

“The Strategic Partnership Global Gateway finds in Mozambique a natural partner because we share fundamental strategic priorities,” he said.

Chapo pledged that his government is committed to consolidating a safe, transparent and competitive business environment. He added that the fight against corruption, kidnapping, money-laundering and other crimes is a national priority.

“We want a country at peace, with security and with an attractive business environment for national and foreign investors”, declared the President.

He added that, since 2025, the government has been implementing a series of structural reforms resting on three fundamental pillars – namely macroeconomic stability, the consolidation of the public finances, and fiscal and customs reform. Among the measures adopted there stand out the modernisation of the tax system, the simplification of administrative procedures, the strengthening of revenue collection, and updating the legal framework, so that it is in line with an ever more digitalised economy integrated into international markets.

The reforms also cover the customs list, Value Added Tax (VAT), and the tax on income, with the goal of ensuring greater predictability and security for investors. Chapo said the government has introduced significant improvements in the management of VAT, through digitalisation, strengthening monitoring mechanisms and defining clearer and quicker procedures.

At the same time, the Strategy for Mobilising Revenue for the 2025-2027 period is banking on expanding the tax base, reducing informality, and modernising the fiscal administration. This seeks to strengthen the fiscal capacity of the state and reduce dependence on indebtedness.

In its 2025-2029 Strategy for Managing the Public Debt, the government has adopted a prudent approach oriented towards mitigating financial risks, improving the composition of the debt portfolio and preserving fiscal sustainability.

The President also stressed the creation of the Development Bank and of the Mutual Guarantee Fund. He said these are instruments designed to facilitate access to credit, reduce financing costs and support the growth of small and medium enterprises.

“We intend to mobilise more investment, both national and foreign, for the strategic sectors of the Mozambican economy”, said Chapo.

For his part, the representative of the EU, the Deputy Minister of State Reform of Portugal, Goncalo Matias, said that a dynamic and competitive private business sector is indispensable for deepening the economic relations between the European Union and Mozambique.

The EU, he said, “will continue to support sustainable and inclusive investments”

This goes beyond the economy, he added, and includes areas such as security, social development and humanitarian support

“Without peace, there cannot be sustainable development”, said Matias. “Without stability, there cannot be lasting opportunities,”

He reaffirmed the EU's commitment to supporting Mozambique's efforts to restore security, rebuild communities affected by conflict and create economic opportunities, particularly for young people.

“Our approach is integrated. We combine humanitarian assistance, support for livelihoods and long-term development with security cooperation and capacity building,” he said.

The Global Gateway initiative is the European Union's flagship investment strategy aimed at mobilizing public and private capital for sustainable infrastructure, digital connectivity, energy and transport projects worldwide.

In Mozambique, the programme has increasingly focused on supporting economic diversification, regional integration and private-sector development.

The two-day forum will conclude after discussions on green industrialization, clean energy, transport infrastructure, digital transformation and investment opportunities across Mozambique's emerging growth sectors. (MT)

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