“There is a historic reason for this. After the independente, in a context in which we couldn’t flee imperialist influence, but we didn’t want the country’s resources to be raided in their entirety by external capital, a national bourgeoisie came into being, which protected Mozambique’s resources. And who is more patriotic than those who fought for the freedom of their homeland? The first wave of expropriation was carried out by the State to bring about the emergence of this group of owners. It wasn’t successful. Subsequently, many of these companies became obsolete: the funding systems were inadequate, there were no support services for business rehabilitation. The link with foreign capital became a viable option for various reasons: they are multi-nationals that dominate international markets, they have technology, reputations, experience...
The biggest problem is that passing the scarcely available resources over to multi-nationals meant that the Mozambican oligarchical capitalist bourgeoisie would lose in the process. To prevent this, they linked the entrance of foreign capital to the development of domestic capital. It is not by chance that there was an enormous campaign promoting the riches of Mozambique, ‘we have gas, we have petrol, we have coal, we have minerals’,” explains Carlos Nuno Castel-Branco, Mozambican economist and researcher at the Instituto de Estudos Sociais e Económicos [Institute of Social and Economic Studies].
And he continues: “the way in which domestic capital and foreign capital were linked was to place the first to negotiate with the second. But for this process to take place without additional costs, the State had to renounce its sources of income: mines, resources, it was all made available at low cost, making any business favourable.”