Business and FDI Opportunities in Mozambique

Country Overview

The Republic of Mozambique (República de Moçambique) is situated on the south-eastern coast of the African continent between South Africa and Tanzania and has a population of around 28.8 million. The country existed as a Portuguese colony for nearly five centuries, gaining independence in 1975. Until the mid-1990s, the country’s development was largely hindered by large-scale emigration, severe drought, and political instability. However, it has exhibited rapid growth since then and is currently amongst the fastest-growing economies in Africa. During the past two decades, the country’s GDP has expanded at an average rate of 7%, exceeding US$ 11 billion in 2016.

Over the years, Mozambique has become an important FDI destination in Southern Africa receiving sustained foreign direct investment since 2011. The Mozambican government also views foreign direct investment as a means of economic growth and job creation and encourages it through business-friendly laws and regulations.

Why Invest in Mozambique

Mozambique has attracted numerous investment projects in the past several years, exceeding those in most other African countries. The country has an abundance of coal and natural oil which has attracted a large number of these projects. Other sectors targeted by the investors include mining, tourism, agriculture, fisheries, etc. The easy access to the country further provides it an advantage over its landlocked neighbors.

The Government of Mozambique has continuously implemented reforms, maintained sound economic policies, and put in place a privatization program for public companies, which offers great opportunities to foreign investors. It has also signed investment promotion and reciprocal protection agreements with 17 major countries including the United States, South Africa, Germany, and China. Moreover, as a member of the Southern African Development Community (SADC), Mozambique offers investors easy access to other economies in the southern African region.

Where to Invest

Mozambique presents investment opportunities in a diverse range of sectors with some of the most popular being:

• Agribusiness: The agribusiness sector in Mozambique offers numerous opportunities to investors owing to its conducive agro-climatic conditions, proximity to South Africa, the Middle East, and Asia, and underutilized agricultural land. The country’s agro-processing sector also has untapped potential due to limited value edition in the domestic market.
• Logistics and Warehousing: Logistics and warehousing are vital for the proper functioning of various industries in an economy. With increasing growth in industrial activities over the years, the need for transportation capacity and logistics facilities has increased manifolds in Mozambique. This has opened up various investment avenues in the logistics and warehousing sector for investors.
• Tourism and Leisure: The cultural and historical heritage of the country along with natural attractions and a spanning coastline are some of the advantages for investors in this sector. Improved access to remote locations and steadily growing business tourism have further made Mozambique a preferred destination for tourism and leisure investments.
• Infrastructure: As a growing economy, Mozambique provides a wide range of investment options in the infrastructure sector. Some of the opportunities in the country include the construction of new buildings for both the public and private sectors such as apartments and office buildings; industrial plants and science and technology parks; and expansion and maintenance of transport facilities such as roads and bridges.

About IMARC Group: IMARC Group is a leading market research and consulting company that offers management strategy and market research worldwide. With an acute focus on the flourishing Middle East and Africa markets, the company has enabled its clients to successfully set up and expand their businesses in Mozambique. Some of the company’s offerings include:

• Market Research
• Feasibility Studies
• Market Expansion
• Marketing and sales
• Procurement and Distribution