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LOCATION
The Country
SADCThe Way Forward
2008 Free Trade Area
2010 Customs Union
2015 Common Market
2018 Monetary Union
CPI - Investment Promotion Centre
CPI - Investment Promotion CentreMission
To identify potential financial and/or technological partners for joint ventures;
To identify and disseminate investment opportunities;
To promote programmes of assistance to the development of businesses, in particular national businesses.
Why Invest in Mozambique?
Centro de Promoção de Investimentos
Mozambique has stable economy and a privileged geographical position, coast-line and climate;
Country rich in natural resources (land, mining, hidro,gas etc.);
With good transport infrastructure ,Ports and “Development Corridors” serving the Hinterland;
Millions of idle arable land, available through legal concession arrangements for Agriculture investments; Bio fuels; and, other sustainable agro-industrial activities.
Maputo, Beira , Sena and Nacala regional transport/development corridors related business are excellent investment opportunity;
Development and operation of new/rehabilitated port facilities;
Why Invest in Mozambique?
Incremental Power Generation and Transmission Investments;
Telecom Investments ;
Water Supply Production and Transportation on BOT/BOOT/15 yr exploitation (up to $100 million);
Tourism Investments
Centro de Promoção de Investimentos
Why Invest in Mozambique?
COKE AND COAL ROUTECOKE AND COAL ROUTE
FRUIT ROUTEFRUIT ROUTE
Specific Incentives
Agriculture and Fisheries
Hotels and Tourism
Manufacturing and Assembling Industries
Creation of basic infrastructures
Rural commerce and industry
Science and technology parks
Large projects
Rapid Development Zones
Export Processing Zones
Special Economic Zones
RapidDevelopment
ZonesIbo
NacalaMoz. Island
Sofala
MOZAMBIQUE PROJECTS OPPORTUNITIES
SADC Transport Corridors
REGIONAL TRANSMISSION GRIDREGIONAL TRANSMISSION GRID
Dem Rep of CongoCongoGabon
Luanda
Windhoek
Lusaka
Harare
Lilongwe
Nairobi
Dar es Salaam
GaboronePretoria
Johannesburg
Cape Town
MaputoMbabane
KinshasaBrazzaville
Angola
Tanzania
Kenya
Mozambique
South Africa
Swaziland
Lesotho
Namibia
Zambia
BotswanaZimbabwe
Malawi
RwandaBurundi
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Hydro stationPumped storage schemeThermal Station
P
Transmission network
Special Projects
Project Area of activityInvestment
(current US$)
Operations start in year
Cahora Bassa (HCB) Hydroelectric power) (1969)
Mozal 1 Aluminum smelter 1997
Mozal II Ditto 2001
Temane Gas (also Pande)
Natural gas (SASOL) 2002
Moma Heavy Sands Titanium mining 2003
ProCana Sugar cane to ethanol, Massingir
$500 M 2007
Corridor Sands Project
Titanium mining
PETROMOC pipeline Petroleum product pipeline to S.A.
> $500 M
Centro de Promoção de Investimentos
Special Projects
ProjectArea of activity Investment
(current US$)
Operations start in year:
COFAMOSA biofuels Sugar cane to ethanol $500 m
Petrobuzi Sugar cane to ethanol $550 m
Rio Lurio Sugar cane to ethanol, Cabo Delgado
N.A.
CVRD/Moatize Coal mining and export $1+ bCVRD/Moatize power Coal-fired power plant $2 b
including transmission
Riversdale Holdings Coal mining and coal-fired power plant
N.A.
Temane power Gas-fired electricity power N.A.Cahora Bassa North Hydroelectric power ???Mphanda Nkuwa Hydroelectric power $1.6 b
Transmission line for Mphanda Nkuwa
Transmission line to S. Africa $2.3 b
MOZAL III Aluminium smelter N.A.Centro de Promoção de Investimentos
Clusters -
Ports Railways Essential
Oils
Forestry and Pulp
Sea Products
TourismTourism GasGas CottonCotton Aquaculture
CoalCoal SugarSugarTantaliteTantalite Tropical
fruits
Aluminium TitaniumTitanium FlowersFlowers
CETA Construction
MBO in 1999 -annual sales 10Mi USD.MBO w/ a venture capital fund (NORFUND + Aureos Capital). 250 shareholders, 15 controls 70%
2009 -CETA annual sales 55 Mi USD. Main competitors, Chinese contractors
According to KPMG, CETA is the largest employer in Mozambique (3,000 workers, most as casual labour).
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CETA Construction
Recent contracts show impact of Coal projects:•1,000 low cost houses for Brazilian Mining House VALE on Moatize Coal project•Access Road and housing for Riversdale, a JV Australian - Indian Mining Houses, on Benga Coal project
•Maputo housing market is still growing
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Agro Processing
CETA invested in MAP, an agro business company, with main focus in cashew nut processing, mango and banana;
MAP is now pursuing a major project:2,000 Ha of banana with off-take agreement with a multinational: Market location, counter season, Land and Water are main drivers. Chile of SADC?
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Challenges X Opportunities
Delay in payment in government portion (20-30% of WB and ADB) of contracts is a major problem in construction industry
XHave private investors contracts or export driven products. Although late in payment gov’t had honoured all debts, so banks are willing to lend based on this debt.
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Challenges X Opportunities
High cost of financing in local currency (Metical)
X Finance in foreign currency according to your currency revenues stream (no restriction from Central Bank if lender is a foreign bank) . Local banks can finance in USD only for exporters
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Challenges X Opportunities
Lack of vocational training and projects must take this factor into account
XHave in-house training schemes in partnership with public institutions. Mozambican labour are very keen to learn
e.g. on going 3,000 Ha of Banana project major constrain is training of local labour.
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Challenges X Opportunities
Lack of directors with corporate governance experience in some specific trade areas:eg CETA construction in last 10 years had one South African non-executive board member, despite the fact that he cannot speak PortugueseXPlan in advance composition of Board of Directors, surveying local market
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Challenges X Opportunities
Logistics throughout the country must be well planned in advance. Transport or handling costs can be high in Southern Africa, compared to other emerging markets XPositive factor is proximity of South Africa (Maputo is 100km from RSA border), as a supplier of goods and services. Volume can bring transport costs down
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Challenges X Opportunities
Hiv-Aids and Malaria can impact on productivity, and the most affected are the mobile workforce
X
Proactive role from top management reduce drastically the effects
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Challenges X Opportunities
Government vs Private sector promotion and dialogue
X
There is a regular dialogue between Confederations and Gov’t institutions but more can be achieved in future if private sector get more capacity
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Challenges X Opportunities
Closing remarks: market economy had really re-started in Mozambique after 1994, with peace agreement and general elections. In 16 years one can feel that a new generation of entrepreneurs is grooming and country is prepared for new ventures despite all the challenges mentioned.
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Mozambique Investment Promotion Centre
www.cpi.co.mz
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