Abstract
M.Comm.
The purpose of this study is to identify and investigate potential obstacles for local and
international investors in the Maputo Development Corridor (MDC). This study focuses
exclusively on the Maputo-Mpumalanga Corridor axis which could be considered as an
important nucleus of the eastern region of Southern Africa. The possibility of cooperation
concerning the Corridor offers both South Africa and Mozambique - who have until recently both experienced less than optimal international trade relations – the opportunity for enhanced competitiveness. The study therefor attempts to measure the perceptions of potential investors to identify obstacles regarding the process of regional economic integration involving the Map uto-Mp umalanga Corridor in attracting investments. After thorough evaluation of the potential investment sectors among the various role players it became clear that tourism is the sector with the largest potential for investment. Next are the transport and agricultural sectors which show great potential and then, to a lesser extent manufacturing projects. By putting emphasis on these sectors as investment
opportunities in particular, will result in more concentrated and graduated progress. With reference to the fact that investment is taking place slowly or does not take place at all, it is obvious that the,re are certain obstacles in the way of investment. The response that has been obtained shows clearly that the different role players do not regard the same factors as obstacles. This mere fact is probably already the biggest obstacle of them all. The fact that international investors regard safety and security as well as bureaucracy in the public sector as the two biggest obstacles, is a serious cause for concern. It shows that overseas investors are not as yet convinced of South Africa's democracy and its new government. Taking all the role players' opinions into consideration, it can be said that the general obstacles in investment in the Corridor can mainly be identified as follows:
Safety and security. Bureaucracy in the public sector. Labour problems (productivity and demands by trade unions). Quality of products from Mozambique. Unless both governments address the above-mentioned obstacles immediately, potential investors would continue to regard the Maputo Corridor as unfavourable to a certain extent. This study therefor provides a clear explanation of the most important sectors for investment. It also identifies the most important obstacles to investment in the Maputo-Mpumalanga Development Corridor. It should be seen as an introduction to further research, for a more in-depth investigation of each sector will provide more specific problems and opportunities.