nvestment Monitor’s 2022 inward foreign direct investment (FDI) performance index ranks Mozambique as the top FDI destination in sub-Saharan Africa, ahead of South Africa and Ghana.The index measures a country’s inward investment levels against its gross domestic product (GDP) using GlobalData’s FDI Projects Database, which tracks greenfield projects.According to Deepti Aggarwal, production manager of GlobalData’s FDI team, the appeal of Mozambique includes relatively lower land and wage costs, the country’s vast reserves of natural resources, and its strategic geographic position.“Moreover, the country has seven free trade zones that offer investors various tax exemptions and custom benefits based on location, sector and size of investment.”According to the United States Department of State evaluation of investment prospects in Mozambique, “many business contacts have complained that challenges to investment include corruption, barriers to private land ownership, high interest rates, and poor infrastructure.“Heavy rains and tropical storms cause frequent degradation of roads, bridges, and other infrastructure.“Mozambican labour laws make it difficult to hire and fire workers, and court systems are bogged down by labour disputes. The domestic workforce lacks many advanced skills.”According to CEIC data, FDI increased by $589 million in June, up from an increase of $268m in the previous quarter.FDI into the country reached a high of $2.7bn in June 2021 and a record low of -$532m in 2018.FDI f lows are expected to increase as work is resumed on the giant gas projects.