Africa Singapore Business Forum, 28 - 29 August Country Panel Presentation - Mozambique www.enterprisesg.gov.sg/asbf

1. REPUBLIC OF MOZAMBIQUE
Investment & Export Promotion Agency (APIEX)
MOZAMBIQUE: A GATEWAY TO
AFRICA’S EMERGING MARKET
SINGAPORE, 29 – AUGUST - 2018

2. PRESENTATION LAYOUT
COUNTRY PROFILE & WHY MOZAMBIQUE
TRADE & INVESTMENT FLOWS
LEGAL FRAMEWORK
BUSINESS OPPORTUNITIES
1
2
3
4

3. MOZAMBIQUE AT A GLANCE
Economy is driven by its extractive and
logistic industries and related mega projects.
Expectations for the country to emerge as
one of the top coal and LNG exporters in the
world are encouraging a sustained influx of
FDI.
100 TCF of Proven Gas reserve are located in
Pande, Buzi and Temane area alone. Total
estimate reserve of 170~200 TCF of gas
discovered on and off the coast of
Mozambique.
By 2025, Mozambique will be the 3rd largest
country in exporting LNG just after Australia
and Qatar.

4. MOZAMBIQUE AT A GLANCE
 Location: East Coast of Africa
 Total Area: 799,380Km2
 Coastline: 2,700km (Indian Ocean)
 Population: 29 Million
 Capital: Maputo
 Languages: Portuguese (Official); African
Languages; English widely spoken
 Religion: Catholic (28%); Muslim (18%),
Other beliefs

5. MOZAMBIQUE AT A GLANCE
Macro-economic Indicators (2017):
• GDP: US$ 13.4 Billion
• GDP Per capita: USD 465
• GDP Growth Rate: 3,7%
• Inflation (2017): 5,7%
• Exports (2016): 4.7 Billion
• Imports (2016): 9.1 Billion

6. MOZAMBIQUE AT A GLANCE

7. Mozambique has an advantageous strategic geographic position, providing an ideal
gateway to both regional and international markets
Europa /
Mediterranean
Asia
Middle East
Neighbouring SADC
countries
Privileged access to High Opportunity Markets (Regional & International)
WHY MOZAMBIQUE?
 Six development corridors:
 Pemba-Lichinga
 Nacala
 Zambezi Valley
 Limpopo
 Beira
 Maputo
 Three main ports:
 Maputo
 Beira
 Nacala

8. GEOPOLITICAL ADVANTAGE
Boardering Tanzania, Malawi, Zambia, Zimbabwe, South
Africa and Swaziland.
Serve as import/export hub for landlocked countries:
Malawi, Zambia, Zimbabwe, Botswana and Swaziland.
3 International and 8 domestic airports.
3 Main seaports.
Nacala is the deepest natural seaport in west coast of
Africa, with a railway system reaching Zimbabwe through
Malawi.
Nacala port serve as the gateway to the “copper belt” of
Africa’s resourceful region.
Member of SADC or Southern African Development
Community, 14 members include: Angola, Botswana,
Democratic Republic of the Congo, Lesotho, Malawi,
Mauritius, Mozambique, Namibia, Seychelles, South Africa,
Swaziland, Tanzania, Zambia and Zimbabwe.
SADC total population: 270 million

9. WHY MOZAMBIQUE (CONT.)
Long Coast (2.700km): tropical beaches,
clean and warm blue crystal waters, ideal
for diving
Rich marine life with rare animals: whales,
sharks, rays, turtles, dugongs,
Rich and Diverse Natural Resources Base
(Coal, Oil & Gas, Graphite, Iron ore, Gold,
Bauxite, Marbles, Lime Stone, Rare Minerals)

10. WHY MOZAMBIQUE (CONT.)
Young and educated work force
(easily trainable)
Access to preferential markets
(SADC, USA -AGOA, EU -EPA, China,
India, Japan, CFTA)
Southern Africa Energy and
Logistics Hub

11. WHY MOZAMBIQUE (CONT.)
Tax & non-Tax incentives
Investor Protection (Intellectual and
Industrial Property Rights)
Free Remittance of Funds Abroad
Openness to FDI (New Visa System –
Tourism, Business and Investment visas)

12. WHY MOZAMBIQUE (CONT.)
Hospitable & Friendly People
Cultural diversity (Arabic, Swahili,
Portuguese and others)

13. Banco Nacional de Investimento • 13
TRADE &
INVESTMENT
FLOWS

14. EXPORTS

15. IMPORTS

16. TRADE BALANCE

17. DESTINATIONS

18. ORIGINS

19. 2013 2014 2015 2016 2017
37,9 M
317,2 M
149,5 M
137,2 M
141,4 M
629,2 M
148,2 M
128,8 M
472,8 M
101,8 M
Exports
Imports
 Main Export Products
Waste and scrap metals, tobacco, aluminum, fresh fruits, taps, valves, lead, vegetables, pasta,
sugar, precious and semi-precious stones, cotton, molluscs, etc.
 Main Import Products
Vehicles, integrated circuits and micro-components, equipments, rice, petroleum or
bituminous minerals, liquid and gas centrifuges, etc.
MOZAMBIQUE-SINGAPORE TRADE BALANCE
(2013-2017)

20. FDI PERFORMANCE
• Mozambique tops the 2017 Greenfield FDI
Performance Index acoording to an annual
study by fDi Intelligence, a Financial Times
data division, which looked at inbound
greenfield investment in 2017;
• Mozambique scored 12.64 in the index, closely
followed by Serbia (11.6) in second and
Cambodia (9.61) in third.

21. FDI PERFORMANCE

22. FDI PERFORMANCE

23. FDI PERFORMANCE

24. FDI PERFORMANCE

25. 2016
Nominal GDP
(1 billion USD)
GDP per
capita(USD)
Population
(Million)
1. Nigeria (World Rank 24th） 405.95 (18.6%) 2,210.64 183.64
2. Egypt （32nd） 332.35 (15.2%) 3,684.57 90.20
3. South Africa（39st） 294.13 (13.5%) 5,260.90 55.91
4. Algeria 160.78 ( 7.4%) 3,944.43 40.76
5. Morocco 103.62 ( 4.7%) 3,063.07 33.83
6. Angola 95.82 ( 4.4%) 3,502.27 27.36
7. Sudan 94.42 ( 4.3%) 2,384.45 39.60
8. Ethiopia 72.52 ( 3.3%) 795.23 91.20
9. Kenya 68.92 ( 3.2%) 1,516.33 45.45
10. Tanzania 47.18 ( 2.2%) 970.21 48.63
11. Ghana 43.26 ( 2.0%) 1,569.04 27.57
12. Tunisia 41.87 ( 1.9%) 3,730.42 11.22
13. DRC 41.62 ( 1.9%) 494.65 84.13
14. Ivory Coast 35.49 ( 1.6%) 1,458.83 24.33
15. Libia 33.16 ( 1.5%) 5,193.24 6.39
26. Mozambique 11.28 (0.5%) 392.44 28.75
FDI flows (mil $) 2014 2015 2016 FDI Stocks(mil $) 2014 2015 2016
1Angola 16543.2 16176.4 14363.6 1South Africa 138905.6 126755.5 126837.2
2Egypt 4612.0 6925.2 8106.8 2Egypt 87485.0 94307.0 102324.0
3Nigeria 3357.0 3192.3 3485.3 3Nigeria 86671.2 89735.4 94184.1
4Ghana 3357.0 3192.3 3485.3 4Morocco 51192.0 49670.5 54784.2
5Ethiopia 1855.2 2192.7 3196.4 5Angola 25899.8 35181.9 49545.5
6Mozambique 4901.8 3866.8 3093.4 6Mozambique 24870.0 28736.5 31830.0
7Morocco 3561.2 3254.8 2321.8 7Ghana 23205.1 26397.4 29882.3
8South Africa 5770.6 1729.4 2270.4 8Tunisia 31563.0 34689.5 29304.8
9Congo 5502.6 1866.0 2006.0 9Algeria 26819.6 26232.3 27778.3
10Algeria 1506.7 -584.0 1546.0 10Congo 22009.7 23875.7 25881.7
Africa Total 71254.0 61494.8 59373.0 Africa Total 743227.3 773070.6 836553.0
Top 15 countries
in Africa in terms
of Economic Scale
(2016)
FDI into Africa
between 2014 to
2016
Left：Flows
Right：Stocks
Data source：IMF World Economic
Outlook 2017 April
Data source: UNCTAD
MAJOR INVESTMENT DESTINATION IN AFRICA

26. INVESTMENT APPROVED
2010-2017
3,277
3,090
4,816
4,598
7,465
1,87
6
1,995
1,168
3,090
2,852
3,212
4,224
7,10
2
1,774
1,15
2
1,129
187 238
1,604
374 363
102
84
3
390
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
2010 2011 2012 2013 2014 2015 2016 2017
Amount of Investment Projects Approved (US$Million)
Total (APIEX)
Former CPI
Former GAZEDA
Source：APIEX 2018Excluding Mega-projects

27. Source：IMF 2018
Net FDI Balance Projection for 2016-2023
(US$Million)

28. SINGAPORE APPROVED INVESTMENT
(2013-2015)
2010 2012 2013 2014 2015
23,751,968
100,000
28,982,000
7,497,850
31,969,183
Investment Approved (US$)

29. SINGAPORE APPROVED INVESTMENT
(2013-2015 by Sectors)
Agriculture &
Agro-Industry
61%
Services
6%
Construction
15%
Transport &
Logistics
7%
Industry
11%

30. Banco Nacional de Investimento • 30
LEGAL
FRAMEWORK

31. TAXATION SYSTEM
IMPORT
CUSTOMS
DUTIES
Equipment
5.0%
Raw Material
2.5%
Semi-finished
products 7.5%
Finished
products
20.0%
VAT
17.0%
CIT
32.0%
PIT
Minimum
10.0%
Maximum
32.0%
WITHHOLDING
TAX
(Dividends)
20.0%
Social Security:
 4% (employer)
 3% (employee)

32. TAX INCENTIVES
GENERAL BENEFITS
In Respect to Imported Goods:
Exemption from customs duties and VAT on the
import of capital equipment, spare and
accessory parts.
In Respect to Income Tax:
Investment Tax Credit;
Accelerated Depreciation ;
Tax Deductions (Professional Training; Use of
new Technology)

33. TAX INCENTIVES
SPECIFIC BENEFITS
 Infrastructure Development;
 Trade and Industry in Rural Areas;
 Manufacturing & Assembly Industry;
 Agriculture and Fisheries;
 Hotels and Tourism
 Science and Technology Parks
 Large Scale Projects
 Rapid Development Zones
 Industrial Free Zones
 Special Economic Zones
 Mining Activities
 Oil & Gas operations

34. SPECIAL ECONOMIC ZONES & INDUSTRIAL
FREE ZONES
 SPECIAL ECONOMIC
ZONES (SEZ)
– Involves investment in
all sectors
– For both export and local
markets
– Business must be located
in the zone
 INDUSTRIAL FREE
ZONES (IFZ)
– Export oriented
manufacturing;
– Should export at least
70% of the products;
– Can be stand alone
factory unit.
o ZFI Revúboe
GEOGRAPHIC LOCALIZATION OF SEZ (ZEE) & IFZ
(ZFI) IN MOZAMBIQUE

35. BILATERAL TREATIES
 Angola
 South Africa
 Germany
 Algeria
 Belgium
 China
 Cuba
 Denmark
 Egypt
 USA
 USA (OPIC)
 Finland
 France
 Indonesia
 Italy
Investment
Promotion and
Reciprocal
Protection
Agreements
Agreements to
prevent Double
Taxation and Fiscal
Evasion
 Mauritius
 Netherlands
 Portugal
 Sweden
 United Kingdom
 Vietnam
 India
 Switzerland
 Zimbabwe
 Spain
 Japan
 Brasil
 Singapore
 Turkey
 Portugal
 Mauritius
 United Arab
Emirates
 Macau
 Italy
 South Africa
 India
 Botswana
 Vietnam

36. Banco Nacional de Investimento • 36
BUSINESS
OPPORTUNITIES

37. PRIORITARY SECTORS
AGRICULTURE TOURISM ENERGY MANUFACTURINGINFRASTRUCTURE OIL & GAS

38. AGRICULTURE/AGRIBUSINESS

39. AGRICULTURE

40. AGRICULTURE

41. High
Agricultural
Potential
EXTENSIVE WATERWAYS
YEAR-ROUND
PRODUCTION POTENTIAL
10 DISTINCT
AGRO-CLIMATIC
ZONES
VAST
UNUTILIZED
ARABLE LAND
Unutilized
30.6
85.0%
Utilized
5.4
15.0%
Arable
Land
36.0
Land Suitability
MillionHectares
Suitable for rainfall
agriculture
Moderately suitable for
rainfall agriculture
Utilization of Arable Land
 Major rivers :Zambezi, Limpopo,
Sabie, and others offer
tremendous irrigation potential
 Tropical climates offer
potential for year-round,
high yield crop production
Mozambique has ideal growing conditions – plentiful water supply combined with
diverse micro-climates to support a broad range of agricultural commodities
AGRICULTURE POTENTIAL

42. ECONOMIC CONTIBUTION
 Agriculture is the mainstay source of income in Mozambique and presents a
very good perfomance.
Agriculture Share
GDP Employment
Other sectorsAgriculture
Agriculture employs about 80% of
the total labor force.
Contributes about 22% to the GDP.
AGRICULTURE

43. Arroz Soja
Banan
a
8Priority
ValueChais
Sugar
(export.)
RiceMaize Cassava Poultry Meat
Vegetables
Sesame
(export.)
Cashew-nut
(export.)
Soy
(export.)
Cotton (export.)
Beans
Banana
(export.)
15STRATEGICVALUECHAINS
Source: MASA
Sweet
potatoesPotatoes
Macadamia
(export.)
Paprica
(export.)
AGRICULTURE VALUE CHAINS WITH GREATEST
OPPORTUNITIES
- 15 strategic value chains identified;
- 8 have been prioritized.

44. TOURISM
44
Culture
Entertainment
Sun, Sand and Sea
Water Sports
Eco Tourism
Adventure

45. TOURISM

46. TOURISM

47. TOURISM
5 PRIORITY DESTINATIONS
NIASSA
ADVENTURE
AND
ECOTOURISM
GORONGOS
AADVENTUR
E AND
WILDLIFE
VILANCULO
SUN, SAND, SEA
AND
ADVENTURE
MAPUTO CULTURE,
BUSINESS AND
EVENTS
QUIRIMBAS
SUN, SAND,
SEA, CULTURE
AND WILDLIFE

48. Inhassoro
• Integrated Resort
Crusse and Jamali
• Integrated Resort
Pemba City
• Business Hotels
TOURISM
INVESTMENT OPPORTUNITIES
Metangula
• Beach Resort
Vilanculos
• Hotel Casino

49. ENERGY

50. ENERGY RESOURCE POTENTIAL
Mozambique energy resources
potential include:
 HYDROPOWER - 20.000MW;
 NATURAL GAS - over 200 TCF,
o Pande & Temane Gas fields 3,5 TCF
being developed since 2004
 COAL - Proven reserves that allow for
more than 40 million tons production/
year for more than 35 years.
 RENEWABLES - 7.100MW, of which:
o Mozambique has concluded a detail
mapping of renewable potentials -
Energy Atlas

51. 51
Three Power Generation Hubs
to be developed, including
High Voltage transmission
lines:
 NORTH, based on natural gas
(Rovuma Basin gas fields);
 CENTRE, based on hydro &
coal (Cahora Bassa, Chicamba
and Mavuzi coal fired power
Plants) ;
 SOUTH, based on natural gas
(Pande and Temane gas fields).
North South gas pipeline is
part of the future developments
and it has been under
discussion.
THE ANCHOR PROJECTS

59. NATURAL GAS VALUE CHAIN
MTO – Methanol to olefins
MTP – Methanol to Propylene
Power Generation
Domestic
LNG, CNG,
Pipelines
Fertilizers
Polymers
Natural
Gas
Condensed
Transport
Industrial
Bio protein
AmmoniaMethanolGTL
LNG
UreaOlefins
(MTO, MTP)
Acids
Petrochemicals
Diesel, Jet, Petrol,
Lubricant, Solvent
PolymersPolymers

60. DOWNSTREAM INDUSTRIES RELATED TO
OIL & GAS
Power PlantGTL Plant
DME Plant
Fertilizer

61. ENERGY & MINING
Natural Gas
Coal Deposits
Heavy mineral sands
Graphite
Bauxite
Limestone
Rare Earths Metals
Tantalite
Gold
Ruby
Gemstone
Marble
Bentonite
Base Metals
Phosphate

62. TRANSPARENCY IN MINING OPERATION
portals.flexicadastre.com/mozambique/en/

63. INDUSTRY
 Food and agro-processing;
 Packaging and printing;
 Wood processing;
 Textile and apparel;
 Building materials;
 Sanitary were;
 Furniture;
 Metals and mettalurgical;
 Development of industrial parks.

64. INDUSTRY
Value adding chain is segmented, this is the
main propulsion in attracting steady FDI flow
into the country.
From cotton growing to textile manufacturing,
and with the aid of ALCOA benefits, textile
value adding chain is booming in recent years.
Aluminium protrusion industries are attracted
to low price and availability of aluminium and
abundance of cheap electricity.

65. TELECOM, IT AND MEDIA
Mobile Banking transformed user
landscape as users can transfer money
directly, thus promotes banking
literacy and entrepreneurship.
Weather info for coastal fishermen and
farmers through emergency broadcast
systems benefits far reach
communities.
Movitel (Vietnam)
Vodacom (UK)
MTN MCel (SA & Moz)
Cell C (SA)

66. TRANSPORT

69. CONCLUSION

70. THANK YOU!