Mozambique Targets Algeria To Broaden Export Base

Mozambique is deepening economic diplomacy with North Africa, using the upcoming Intra-African Trade Fair (IATF 2025) as a platform to court Algerian investment in agriculture, manufacturing, and logistics. The Ministry of Industry and Commerce confirmed that bilateral discussions aim to establish a trade corridor linking Maputo and Algiers, targeting fertilizer imports, food-processing equipment, and export financing partnerships under the African Continental Free Trade Area (AfCFTA).

The initiative forms part of Mozambique’s broader industrial diversification strategy. Exports remain concentrated in aluminum, coal, and gas, which together account for over 60% of total receipts. By expanding agricultural and light-manufacturing trade, policymakers hope to lower exposure to commodity cycles and stabilize external balances. Early projections suggest that Algerian partnerships could mobilize US$250 million in joint ventures over the next five years, with potential job creation exceeding 15,000 positions.

Algerian investors, represented by the Chamber of Commerce and Industry, have expressed interest in processing ventures for cashew, cotton, and sugar, alongside participation in Mozambique’s Beira Industrial Corridor. The African Export-Import Bank (Afreximbank) has offered to structure trade-finance guarantees to de-risk early projects, while both governments explore harmonized customs procedures under AfCFTA protocols.

Mozambique’s trade balance remains fragile, with imports averaging 28% of GDP and a persistent current-account deficit of 6.2%. Strengthened bilateral logistics could reduce freight times by 25% and enhance access to Mediterranean markets. The metical (MZNUSD=X) has held broadly stable near 63.4 per USD, while Brent crude (CL=F) near US$88 per barrel continues to pressure transport costs.

Economists argue that sustainable diversification will depend on structural reforms in port efficiency, energy reliability, and tax administration. Nevertheless, the government’s proactive outreach to Algeria reflects a strategic pivot toward intra-African industrial cooperation rather than dependence on distant partners. If implemented effectively, the Mozambique-Algeria corridor could become a template for South-North trade integration under AfCFTA’s second implementation phase.