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
And building of schools to train the locals on construction. c) Use of $75m on local community also weakened the local resistance and minimized the risk of health for both locals and expatriates. The creation of the development trust to provide for local schooling and other community needs and the allocation and cultivation of new farming land for the displaced all contributed to neutralize any local resistance. d) Also the signing of cross-border agreement between RSA and Mozambique pledging to honor and protect cross-border investment helped build confidence among the investors and stakeholders to proceed with the project. e) Entry of the sponsors like Industrial Development Corporation (IDC), Development bank of the RSA, The International Financing Corporation (IFC), and Mistubishi Corporation all contributed too the successful funding and guaranteeing of the Mozal Project. Also Cushioning the project from the weak local currency by using the Dollar equally helped meet the budget allocations f) And finally, the clearing of the land mines guaranteed the safety of the workers.
Question 3
The team began searching for a suitable site in 1995 but the project was