• I – Why should you invest in Mozambique
• General aspects and strengths
• II – Mozambique-Japan Trade
• III - FDI Trends in Mozambique
• IV – Legal Framework on Investment
• V – Investment Opportunities
• Transport & Logistics
• Mining, Oil & Gas
• Energy
• Agribusiness
PRESENTATION STRUCTURE
WHY MOZAMBIQUE
Pemba Beach – Cabo Delgado Province Pemba Beach Hotel – Cabo Delgado Province
Sorghum production – Manica Province Titanium mining – Nampula province Artisanal fishing
Train carrying coal to the port of Beira
Neighboring
Countries
Mediterranean
Middle East China/ India
WHERE IS MOZAMBIQUE? - Strategic & Privileged Location-
Mozambique has an advantageous geographic positioning, providing an ideal gateway to both international and regional markets
From Japan to Mozambique
Via
Johannesburg (HK, Bangkok,
Singapore, Beijing, etc.)
Nairobi
Addis Ababa
Dubai
Lisbon
Japan
MOZAMBICAN ECONOMY AT A GLANCE
Area: 799.380 km2
Population: 23 million
Population Growth Rate: 2.8
GDP (Nominal): USD 14.5 billion
Per capita: USD 614
GDP Growth Rate: 7.5%
Trade:
Exports (2011): USD 3.6 billion
Imports (2011): USD 6.3 billion
• Inflation (CPI): 2.09
• Unemployment Rate: 22%
• Literacy Rate: 50.4%
• Exchange Rate MT/USD (2012):
28.4
2,2%
14,8%
1,5%
12,3%
7,1%
0,0%
4,0%
8,0%
12,0%
16,0%
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
ECONOMIC GROWTH RATE
(1995-2011)
8,1%, annual growth rate, one of the fastest among developing countries due to increase in domestic savings, access to international finance, tehcnology transfer, FDI flows.
Rich and Diverse Natural Resources Base: Large
tracts of arable land, forests, natural reserves of
mineral resources, hydrocarbons, water and historical
& cultural heritage;
Increasing investment in infrastructures across the
country (roads, airports…);
Stable Investment Legislation (Predictable, Consistent
Transparent and Protective for Investors);
Political and social stability;
WHY MOZAMBIQUE
100% of investment ownership and control;
Access to preferential markets: SADC, USA, EU,
China, India;
Competitive, educated & easily trainable labor force;
One of Africa‘s most attractive economies for FDI;
Welcoming attitude: hospitality, sincerity, friendliness
WHY MOZAMBIQUE
MOZAMBIQUE-JAPAN TRADE
Main Products Exported:
Crustaceans, Sesame, Cashew, Titanium,
Seafood
Main Products Imported:
Vehicles, Motorcycles, Wheat, Rice, Machinery
and its parts, Electric conductors, Chemicals
0
50,000
100,000
150,000
200,000
250,000
2007 2008 2009 2010 2011
10
00
USD
Exports
Imports
Source: INE
FDI INFLOWS BY SOURCE COUNTRY
TOP 10 (2010-2012)
469,764,632
438,200,865
377,559,640
294,358,778
126,237,876
99,036,800
73,022,398
71,566,932
52,090,450
34,411,670
RAS
Portugal
China
UAE
Mauritius
UK
USA
Italy
Belgium
Spain
FDI (US$)
FDI INFLOWS BY SECTORS
2010 TO 2012
1,411,793,131
774,646,385
2,311,332,287
930,668,691
1,797,544,250
552,943,715
1,086,582,476
289,415,347
Agriculture
Construction
Energy
Industry
Transport & Comm.
Tourism
Services
Other
US$
JAPANESE INVESTMENT IN MOZAMBIQUE
HITACHI Technical Service
Moatize, Tete
Coal Mining
Revuboe, Tete
MOZAL Aluminium Smelter,
Beloluane, Maputo
LNG Project
Off-shore, Rovuma Basin
Wood chips
Maputo
Minimum value of Foreign Direct Investment: US$ 100.000; or
Generates annual sales not less than US$ 300.000; or
Registers annual exports of goods or services not less than US$ 50.000; or
Creates and maintains at least 25 direct employment positions for Mozambicans (From 2nd year of operations).
REGULATION ON INVESTMENT LAW (FDI MINIMUM REQUIREMENTS FOR ELIGIBILITY FOR EXTERNAL REMITTANCE OF PROFITS AND INVESTED CAPITAL)
TAXATION SYSTEM
IMPORT CUSTOMS DUTIES
Equipment 5.0% Raw Material 2.5% Semi-finished products 7.5% Finished products 20.0% VAT 17.0%
Corporate Tax
• General 32.0 %
• Agriculture 10.0% Personal Income Tax
• Minimum 10.0% • Maximum 32.0%
Withholding Tax 20.0%
INVESTMENT INCENTIVES GENERAL
Exemption of customs duties and VAT on the importation of equipment contained in class “K” of the customs tariff
Fiscal Credit
• Maputo City 5%
• Other Provinces 10%
Professional Training: 5% deducted from the
taxable income - IRPC
Creation of Basic Infrastructures
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
INVESTMENT INCENTIVES
SPECIFIC BENEFITS
Investment Promotion and Reciprocal Protection Agreements:
South Africa, Germany, Algeria, Belgium, China, Cuba,
Denmark, Egypt, USA, USA (OPIC), Finland, France,
Indonesia, Italy, Mauritius, Netherlands, Portugal, Sweden,
United Kingdom, Vietnam, India, Switzerland, Zimbabwe and
Spain, Japan (to be signed in 2013).
Agreements to prevent Double Taxation and Fiscal
Evasion:
Portugal, Mauritius, United Arab Emirates, the Autonomous
and Special Administrative Region of Macau, Italy and South
Africa.
BILATERAL TREATIES & AGREEMENTS
INVESTMENT OPPORTUNITIES
Agriculture
&
Agro-industry
Industry
&
Commerce
Transport
and
Communications
Energy
Fisheries
and
Aquaculture
Special Economic
Zones
Mineral
Resources Tourism
NORTH
CENTER
SOUTH
Mapai – Machaila – Massangena –
Chitobe – Muxungue – Estaquinha
- Dondo
Legend
Nhamayabwe – Inhangoma –
Murrumbala – Perre – Namarroi –
Lioma - Mutuali
Ribaue – Lalaua – Machoca –
Montepuez – Mueda – Mocimboa
da Praia.
Moatize – Caia – Nicoadala – Macuse
GEOGRAPHICAL CONFIGURATION
Long Distances (North-South):
Sea and Rail
Road transport considered efficient for distances not
exceeding 500Kms. Therefore better for the East-West Orientation
Moatize – Nacala (Via Malawi)
in 3 years
Moatize – Nacala (Bypassing Malawi)
EXISTING RAIL LINES
RAIL LINES PLANED IN THE TRANSPORT
SECTOR STRATEGY
CURRENT SITUATION OF THE COAL
LOGISTICS
SENA LINE OPERATIONAL (Capacity 6 MTPA) (UPGRADE to 20 - 25 MTPA in 3 years)
Pre-feasibility study done Airports
PETROLEUM AND MINERAL RESOURCES
ACTIVITIES IN MOZAMBIQUE
Top 12 countries with biggest gas resereves in the
world (25% of Africa’s total reserves);
1,000 mining titles granted to national and foreign
entities;
More than 20 billion metric tones of confirmed
coal deposits.
Base Metals (Cu,Ni,Zn)
Viability Studies and Exploration
Phosphates
In Monapo
- Studies and production
3.5 million tons/annum of phosphates
1,5 million tons/annum of iron
Magnetite and ilmenite
Studies for iron production
1. Coal
2. Titanium
3. Construction Material
4. Precious Stones
5. Heavy Sands
1. Natural Gas
2. Alminium
3. Phosphates
4. Tantalite
5. Others
POSSIBLE FUTURE DEVELOPMENTS IN
MINING
SEDIMENTARY BASINS
28
Rovuma Basin
Mozambique Basin
Maniamba Basin
Middle Zambezi Basin
Lake Niassa Basin
Buzi
Buzi Hydroc.
(75%)
ENH
(10%)
M10
Sasol
(42.5%)
Petronas (42.5%)
ENH
(15%)
Sofala
Sasol
(85%)
ENH
(15%)
Area A
Sasol (90%)
ENH
(10%)
P&T PSA
Sasol (70%)
ENH
(25%)
IFC
(5%)
16 & 19
Sasol (50%)
Petronas (35%)
ENH
(15%)
Onshore Rovuma
Anadarko (35.7%)
Maurel &
Prom (24%)
ENH
(15%)
PTT
(10%)
Area 1
Anadarko (36.5%)
Mitsui (20%)
ENH
(15%)
Bharat
(10%)
Videocon
(10%)
PTT
(8.5%)
Area 4
Eni
(70%)
ENH
(10%)
Galp
(10%)
Kogas
(10%)
Area 2 & 5
Statoil (65%)
ENH
(10%)
Tullow
(25%)
Area 3 & 6
Petronas
(50%)
Total
(40%)
ENH
(10%)
CURENT EXPLORATION CONCESSIONS
LN
G
LNG Export
Petrochemical Industry
Infrastructure Development
Social Infrastructure
Housing
Schools
Training Centers
Hospitals
Bulk Infrastructure
Ports
Roads
Rail Network
Airports
Power
GTL
Fertilizers
Methanol
Plastics
Fuels
Pharmaceuticals
FUTURE OPPORTUNITIES IN NATURAL
GAS DOWNSTREAM
7,000 Ha
18,000 Ha
EXISTING POWER INFRASTRUCTURE
(GEN & TRANS)
Cahora Bassa (2075 MW) Chicamba & Mavuzi (90 MW)
Matambo - Caia HV
Transmission lines
Transmission lines from 66 to 400 kV in AC: 5216 Km and 900 Km in DC at ± 533 kV,
including Substations with a total capacity of 5350 MVA;
OPPORTUNITIES
• Hydro potential: 12000 MW
• Natural gas: reserves & exploitation
• Coal: reserves/exploration
• Potential for Renewable Energy development: approx. 5.2 kWm2/day
• Growing Electricity Needs: more than 12 % per annum
• Regional market (SAPP): energy shortage around 2000MW per annum
SAPP (Southern African Power Pool)
GENERATION PROJECTS: GEOGRAPHIC LOCATION
Moatize
(2400 MW)
Mphanda Nkuwa
(1500 MW)
EDM / SASOL
(160 MW)
Boroma
(200 MW)
Lúrio
(180 MW)
Cahora Bassa North
(1245MW)
Lupata
(600 MW)
Massingir
(25 MW)
Benga
(2000 MW)
Mavuzi 2 & 3
(60 MW)
Alto-Malema
(50 MW)
Kuvaninga
(40 MW)
Gigawatt
(100 MW)
Aggreko
(100 MW)
Temane
(50 MW)
Hydro Gas Coal
LAND
Land Ownership: State owned (cannot be bought, sold, mortgaged or
alienated)
Land Concession: 50 years, renewable for an equal period
DEVELOPMENT CORRIDORS & PRODUCTS
CORRIDORS
CORRID
ORS
COUNTRIES
LINKED
KEY PRODUCTS
Pemba-
Lichinga
Malawi cotton, cashew nuts, sesame,
beans, maize and timber
Nacala Malawi,
Zambia
cotton, cashew nuts, beans,
sesame, maize and timber
Zambezi
Valley
Malawi,
Zambia
cotton, cashew nuts, sesame,
beans, maize, rice, teas,
coconuts and timber
Beira Zimbabwe rice, sugar, horticultures, poultry
products, chicken and eggs
Limpopo RSA ,
Zimbabwe
rice, sugar, horticultures, poultry
products, chicken and eggs
Maputo RSA ,
Swaziland
horticultures, chicken and eggs,
fruit and sugar
MAIN PRODUCTS
PERSPECTIVES AND CHALLENGES
Investment in the gas field will double the GDP;
To improve the economy’s competitiveness;
To process the natural resources locally;
To improve the agricultural sector yield and increase productivity;
To invest in quality training, particularly in technical areas;
To improve logistic infrastructure networks that link to the interior of the
Country;
To increase domestic savings, enabling the expansion of domestic
investment;
OFFERS A PACKAGE OF SERVICES TO ASSIST NATIONAL AND FOREIGN INVESTORS
FACILITATING ACCESS TO INCENTIVES OFFERED BY THE GOVERNMENT AND THE
ESTABLISHMENT OF THEIR BUSINESSES.
WHAT CAN CPI DO FOR YOU
CPI Mandate
Facilitation of National & Foreign Investment
Assist through
investment process
& aftercare
Provide information
on economy, industry
& legislation
Issue concession
of fiscal/custom
incentives Arrange meetings
with Government
officials
Introduce potential
projects, sites,
business partners
Assist company
registration, visa, etc.
ARIGATOU GOZAIMASHITA!
Rua da Imprensa 332 R/C
Caixa Postal 4635
Maputo, Mozambique
Tel: +258 21313310
Fax: +258 21313325
Email: [email protected]