Case Study on the Mozal Project Essay
MBA 808 – PROJECT MANAGEMENT
A CASE STUDY OF:
MOZAL PROJECT - INTERNATIONAL INVESTMENT IN AN UNDERDEVELOPED COUNTRY
JARED OSORO NYAKANG’O
DR. BWIBO ADIERI
7th MARCH, 2014
MOZAL PROJECT - International Investment in an underdeveloped Country
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 …show more content…
6. Nature issues
Country-wide Cyclonic floods posed a great risk to the cross country power supply lines and also to the commissioning of the smelter.
7. Eco-political issues
The just ended civil war posed a major risk to such massive investment. The possibility of its re-occurrence must have been paramount in the heads of the project stakeholders. The landmines that lay on the ground posed a real physical risk to the workers of the project. And as a result of the civil war the Economy was at its knees. The ability of the Mozambique government to invest in the project was minimal.
Also of importance here was the government regulation and licensing. Because of the poor economy the government could have been tempted to milk more from the project which could have discouraged the investors.
What issues led to the Successful Completion of the project despite the Risks?
For any project of this nature to succeed despite the risks that it faced I believe the first issue of success was the pre-project phase. There was at this stage proper planning, proper assessment of the risks the project faced, and proper prescription of remedies for the risks identified above. a) On infrastructural challenges Gencor Agreed to finance the