Mozambique may be the next star of emerging markets

Consulting firm highlights Mozal's role in the country's performance

Mozambique may soon join the "above average" emerging-market group in terms of economic growth, the consulting firm McKinsey states.

The african country is still out of the list of 18 countries that the consulting firm considered to have surpassed a set of economic growth indicators in recent decades, but was included among the "recent accelerators" given its potential to join the next wave of outperformers.

In the report "Outperformers: High-growth emerging economies and the companies that propel them", the McKnsey Global Institute (MGI) analyzed the evolution of the GDP per capita of 71 developing economies, from 1965 to 2016, and identified 18 of them as outperformers, about one in four.

Among the next potential outperformers are several countries. Some, such as Bangladesh, Bolivia, the Philippines, Rwanda or Sri Lanka, experienced a per capita growth of more than 3.5% between 2011 and 2016. Others, such as Mozambique, Kenya, Paraguay, Senegal and Tanzania, have improved productivity, income and demand indicators but have not yet reached the growth target consistently.

MGI justifies this above-average performance with a "pro-growth political agenda" and with the contribution of large companies that have aided in driving this growth.

In Mozambique, the Mozal aluminum smelting company (the largest in the country and the second largest in Africa) stands out as a growth engine, generating around 30% of exports and 53% of the flow of foreign currency since it was created in 1998.

"The growth of Mozal had a significant impact on the country's infrastructure and the company was responsible for the expansion of the port and the development of an industrial park near the capital Maputo. The company, which consumes four times more electricity than the rest of the country, has to buy electricity from South Africa," the report points out.