South Africa was the fifth largest investor in Mozambique in terms of approved projects in the first semester of 2010, a spokesman said on Monday.

"South Africa is the fifth largest investor in terms of direct foreign investment," said Evaristo Cumbane, from the marketing and information department of Mozambique's Centre for Investment Promotion (CPI).

All investment in the country is done through the CPI, which facilitates the process for international investors as well.

A total of 110 new and existing projects amounting to over $600-million were approved by the CPI from January to June this year, with the agricultural sector drawing the highest investments, said Cumbane.

South African projects total $22.4-million, trailing behind the largest investor, Portugal ($58.9-million), then Italy, Spain and China.

New projects are expected to create just under 7000 new jobs, said Cumbane.

In 2009, South Africa was fifth on the list as well, with projects amounting to $55.5-million approved.

Norway was the largest investor in that year, with paper plantation projects worth $2.2-billion approved.

The data contradicts previous media reports that South Africa was the largest investor in Mozambique in 2009.

"South Africa in 2009 was not the largest investor, but [it was] Norway, Portugal, and then Mauritius," said Cumbane.

The country had a 9.5 percent economic growth rate in the first quarter of 2010, its statistics body recently announced. However, roughly half of Mozambique's budget is sponsored by international donor aid.

Business and "upliftment projects" amounting to R1-billion were envisioned for Matola, outside the Mozambican capital Maputo, South African high commissioner Dikgang Moopeloa announced recently.

Developing heavyweights India and China sent business delegations to South Africa's Indian Ocean neighbour in July, expressing interest in increasing investment in the country.