Instability could deter foreign investment in Mozambique

Afonso Dhlakama, leader of the anti-communist guerrilla movement RENAMO, has set up a camp in the mountains (photo:dpa)
Afonso Dhlakama, leader of the anti-communist guerrilla movement RENAMO, has set up a camp in the mountains (photo:dpa)

Disputes over the electoral process between the governing Mozambique Liberation Front and the opposition Mozambique National Resistance is heightening tensions and fears of violence with municipal elections due in November 2013. Foreign companies are postponing or freezing their projects as they see a decline in law and order and no signs of political divisions being resolved.

<i>One of world’s fastest growing economies, Mozambique, is bursting with business opportunities. But investment is slowing down because of fears of instability as the 1992 peace agreements between FRELIMO and RENAMO could be at risk. The crisis stems from RENAMO’s marginalisation from the political framew...

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