Maputo — South Africa has clinched its position as the single largest foreign investor in Mozambique by doubling its direct investment over the past year.

Just 52 of the larger South African-led infrastructure and construction projects attracted foreign investment of 93.7 million US Dollars during 2005.

Smaller tourism and small business related projects were not monitored and were therefore not included in the statistics.

Mozambique Investment Promotion Centre (CPI) director Mahomed Rafique said that the South African investment accounted for 58 percent of the total foreign direct investment into the country over the past twelve months.

The total foreign investment climbed to 164.5 million US Dollars, which was a 34 percent rise compared against the 2004 figures.

Mr Rafique said South Africa's nearest competitor was the United Kingdom with 15 projects totaling 27.8 million US Dollars. In 2004, the UK's investment in Mozambique was just 13.1 million US Dollars.

Zimbabwe rose from the seventh position in 2004 to become the third most important investor in its eastern neighbour last year with investments worth 9.1 million US Dollars.

In fourth position is Mozambique's former colonial master, Portugal, maintaining the same poll position it held in 2004 - though its actual investments increased slightly from 5.6 million US Dollars in 2004 to 7.3 million US Dollars in 2005.

The biggest increase in investment was made by China, which jumped up the ranks from 25th position in 2004 to sixth place in 2005.

Direct Chinese investment in 2005 totaled 5.6 million US Dollars against only 292 000 US Dollars in the previous year.

Investment into Mozambique also came from countries such as Mauritius, Rwanda, Angola, Swaziland, Botswana, Brazil, US, Yugoslavia, Belgium, India, France, Uganda, Sweden, Spain, Switzerland, Pakistan, Germany and New Zealand.

The CPI also reports that 541 South Africans have successfully applied for permits to work in Mozambique in 2005.

Mr Rafique said the National Institute of Labour and Professional Training (INEPF) authorised 4 051 foreigners to work in Mozambique in 2005.

"The ministry [of labour] says of the 4 051 foreigners who got work permits, 541 are South African and 440 Chinese, [while] others include Portuguese, Cuban and German nationals," he said.

The requests for foreign workers were from companies from different sectors.

Mozambique has, in recent years, increasingly been seeking foreign technical and construction experts to service its increasing numbers of large investment projects.