AFRICA NAZARENE UNIVERSITY
MBA 808 – PROJECT MANAGEMENT

A CASE STUDY OF:
MOZAL PROJECT - INTERNATIONAL INVESTMENT IN AN UNDERDEVELOPED COUNTRY

PREPARED BY:
JARED OSORO NYAKANG’O
NO: 14J03DMBA014

PREPARED FOR:
DR. BWIBO ADIERI
LECTURER

7th MARCH, 2014
CASE STUDY
MOZAL PROJECT - International Investment in an underdeveloped Country
Question 1
Summarize the issues and factors that posed risks to the Mozal project.
The Mozal project faced a myriad of risks. Some of these are: 1. Infrastructural Issues a) Poor rail and road network b) Run-down harbor for importing raw materials and exporting final products c) Lack of sufficient electricity for the project d) Lack of sufficient border agents for faster clearance of either the raw materials into or finished products out

2. Project Site issues
The site of the project also posed some risks a) It was inaccessible in b) The area residents did not have the construction skills required for the project c) Language Barrier between the locals and the expatriates d) The site area was invested with Mosquitoes e) The area lacked basic facilities like health and educational centers. 3. Resistance
The project was likely to face resistance from two quotas within Mozambique; From authorities and from the local community. This can result when there is no enough communication or when the people can see it as not aligned to their interests.

4. Lack of Cross-border Relations and Agreements
Lack of Investment agreements between The Government of Mozambique and South Africa, Caused a major risk to the project. Because Mozambique was emerging out of a civil war the was a strong need for commitment on the side of Mozambique to assure the Republic of South Africa that they would protect the investment, and allow the flow of raw materials into the country and finished products out of the country for