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- Over the next decade, the Mozambican economy will receive enormous FDI inflows linked to the exploration of the large natural gas reserves in the Rovuma basin which will have a significant impact on economic growth.
- However, this natural resource extraction does not guarantee sustainable socio-economic development, meaning there is a need to create a robust and balanced economy and for the government to focus on effective policies to boost the (agro-) industrial sector.
- This paper examines Mozambique’s poultry and cotton sectors in order to identify opportunities for public-private interactions that could bring about innovation and growth.
- The main finding is that the government should aim to negotiate sector-specific “pacts” with relevant private sector stakeholders. Through these pacts, the government commits to resolving specific constraints through targeted public investments or policy initiatives, including regulatory reforms. The private sector, in turn, commits to specific investments in capacity expansions, productivity improvements or technological upgrading.
- The authors make three policy recommendations on how the government can identify opportunities and effectively negotiate these public-private pacts in order to create inclusive economic development.