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Abstract: The construction sector value added in Mozambique grew at an average annual rate of 12.8 per cent in 1993–2015. Investment in the basic infrastructure of health, education, and housing improved families’ and communities’ living conditions. Investment in roads, communications, and office facilities boosted economic activities and reduced transaction costs. Construction value added grew by only 1.1 per cent in 2016. Challenges ahead include enabling a business environment conducive to expanding small and medium companies in the formal sector; reducing production costs and increasing international competitiveness; improving the prioritizing and programming of public investments; and improving training systems and basic public infrastructure quality.