RESTRICTED  
  
WT/TPR/G/354  
29 March 2017  
(17-1707) Page: 1/16 
Trade Policy Review Body  Original: English  
 
TRADE POLICY REVIEW  
REPORT BY  
MOZAMBIQUE  
Pursuant to the Agreement Establishing the Trade Policy Review Mechanism (Annex 3 of the 
Marrakesh Agreement Establishing the World Trade Organization), the policy statement by 
Mozambique  is attached.  
 
 
Note: This report is subject to restricted circulation and press embargo until the end of the first 
session of the meeting of the Trade Policy Review Body on Mozambique . WT/TPR/G/354 • Mozambique  
 
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  Contents  
1   INTROD UCTION  ................................ ................................ ................................ ..........  3 
2   ECONOMIC ENVIRONMENT  AND DEVELOPMENT  ................................ ..........................  3 
2.1   Economic environment  ................................ ................................ ................................ . 3 
2.2   Development  ................................ ................................ ................................ ..............  4 
2.3   Investments  ................................ ................................ ................................ ...............  4 
2.4   Business environment  ................................ ................................ ................................ .. 5 
3   MACROECONOMIC POLICI ES ................................ ................................ .......................  5 
4   FINANCIAL AND TAX SE CTOR  ................................ ................................ ......................  6 
5   AGRICULTURE AND FISH ERIES  ................................ ................................ ...................  7 
6   SERVICES  ................................ ................................ ................................ ....................  8 
6.1   Transportation and communications  ................................ ................................ ...............  8 
6.1.1    Ports and rai lways  ................................ ................................ ................................ .... 8 
6.1.2    Maritime transport  ................................ ................................ ................................ .... 8 
6.1.3    Road transport  ................................ ................................ ................................ .........  8 
6.1.4   Air transport  ................................ ................................ ................................ ............  8 
6.1.5    Telecommunications  ................................ ................................ ................................ .. 9 
6.1.6    Postal services  ................................ ................................ ................................ .........  9 
6.2   Tourism  ................................ ................................ ................................ ......................  9 
6.3   Financial services  ................................ ................................ ................................ .......10 
6.3.1    Banking and micro -finance services  ................................ ................................ ........... 10 
6.3.2    Insurance  ................................ ................................ ................................ ............... 10 
7   MANUFACTURING  ................................ ................................ ................................ ...... 10 
8   ENERGY AND MINERAL R ESOURCES  ................................ ................................ ..........  11 
9   TRADE POLICIES AND S TRATEGIES  ................................ ................................ ...........  12 
9.1   External trade/trade balance  ................................ ................................ ........................ 12 
9.2   Trade agreements and other preferential initiatives  ................................ ........................ 13 
10   MOZAMBIQUE IN THE WO RLD TRADE ORGANIZATI ON (WTO)  ................................  14 
11   TRADE -RELATED TECHNICAL AS SISTANCE  ................................ ..............................  15 
 
 WT/TPR/G/354 • Mozambique  
 
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1  INTRODUCTION  
1.1.  The Government of the Republic of Mozambique is pleased to submit its Third Trade Policy 
Report to its fellow WTO Members.  
1.2.  Mozambique considers this periodic review mechanism  as a key element of the multilateral 
trading system embodied in the WTO, contributing to a more transparent and comprehensive 
understanding of Members' trade policies and practices among other legal frameworks that 
regulate the international trade.  
1.3.  Mozamb ique presented its last Trade Policy Review in April 2009 and , since then , several 
reforms and economic and trade  regulations were introduced, in order to create a more conducive 
trade and inve stment environment, as well as predictability in its policies.  
1.4.  Mozambique, as a Least Developed Country, sees the Trade Policy Review as a worthwhile 
exercise , through which information concerning different sectors, reforms and progresses made 
have been put together, and it is recogni zed that challenges are still enor mous.  
1.5.  The multilateral trading system continues to be a priority for Mozambique and we believe that 
well-functioning multilateral trade rules are essential for the efficiency of international trade and 
for the good functioning of the global economy. In thi s regard, Mozambique reiterates its 
commitment to provid ing its contribution towards to an early conclusion of the Doha Development 
Round and in its objective of promoting a more inclusive, equitable and development -oriented 
international trading system.  
2  ECONOMIC ENVIRONMENT AND DEVELOPMENT  
2.1  Economic environment  
2.1.  Over the course of several years, the Mozambican economy recorded strong growth. As of 
2009, and after a remarkable economic performance, Mozambique economy growth decelerated 
down at a slower pace.  
2.2.  The deceleration of the Mozambican economic growth rate resulted, on the one hand, from 
the global economic situation which continues to present challenges and from uncertainties 
regarding the future, on the other  hand and, also due to the national situati on, of which we 
highlight:  
i) The fall in international prices of the country's main export products which tends to 
discourage the expansion of production in export -oriented sectors; and  
ii) The effects of drought and floods in different regions of the cou ntry. 
2.3.  As a result, between 2009 and 2015, the Mozambican economy, measured in terms of GDP, 
grew by an average of 6.9%, 1.1 p ercentage points below the growth recorded between 2002 and 
2008. In 2015, the real GDP grew by 6.6% and the GDP per capita was US $601. In the same 
period, the average inflation recorded was 7.1%.  
Table 2.1 Economic Indicators, 2009 -2015  
Indicator  2009  2010  2011  2012  2013  2014  2015  
GDP growth (%)  6.4 6.7 7.1 7.2 7.1 7.4 6.6 
Inflation (% ) 3.3 12.7 10.4 2.1 4.2 2.56 3.55 
GDP per capita (USD)  516 466 552 643 662 692 601 
 
2.4.  Agriculture, livestock, hunting, forestry, related activities and fisheries continue to be the 
main contributors to economic growth, with an average GDP share of 25.4% , and these are the 
employment sources for about 80% of the population. However, despite their weight in the GDP 
structure, these sectors have the lowest growth rates, with a record of 3.6% average growth over WT/TPR/G/354 • Mozambique  
 
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  the review period. In this period, the extractive  industry sector grew the most, with an average 
24.1% growth , and contributed 2.4% on average in the GDP structure.  
2.2  Development  
2.5.  Between 2001 and 2014 , the Government of Mozambique prepared and implemented the 
Poverty Reduction Action Plans with five -year p eriods, namely PARPA I 2001 -2005, PARPA II 2006 -
2009 and PARP 2011 -2014. These Plans were implemented in parallel with other policy 
instruments . The Government's Five -Year Programs are developed and implemented in each 
governance cycle. In these instrument s, the Government defines the underlying objectives for the 
promotion of economic, social and inclusive development; and poverty and vulnerability reduction 
in the country in an environment of peace, harmony and tranquillity.  
2.6.  This macro -objective would be achieved by promoting rapid, sustainable and comprehensive 
socio-economic growth with a focus on rural development, basic social services and infrastructure, 
job creation, as well as on an environment conducive to private investment and development of 
national business.  
2.3  Investments  
2.7.  Law No. 3/93 of 24 June (Investment Law) defines the basic and uniform legal framework for 
the process of realization in the Republic of Mozambique of national and foreign investments 
eligible for the enjoyment of tax guarantees and incentives foreseen  therein . This Law applies to 
investments of an economic nature carried out in all sectors open to private initiative, except 
investments in the extractive industry of mineral resources, which are subject to specific 
legislation, and  enshrines the principle of equal treatment between domestic and foreign investors, 
which are subject to the same rights, duties and obligations.  
2.8.  According to the law in force, private investments, regardless of their form, should contribute 
to the sustain able economic and social development of the country and abide by the principles and 
objectives of the national economic policy.  
2.9.  In order to ensure a stable flow of foreign capital to meet national development objectives, 
Mozambique's investment policy is b ased on the following pillars:  
a) Security and protection of property rights, as established in the Investment and 
Agrarian Laws;  
b) Freedom to receive and repay foreign loans and repatriate profits;  
c) Ensure fair and efficient settlement of disputes, acc ession to the International Centre 
for the Settlement of Investment Disputes, supplemented by bilateral investment 
treaties with 20 countries;  
d) Negotiation of double taxation treaties with some of the main economic partners;  
e) Establishment of Special E conomic Zones and Industrial Free Zones; and  
f) A proportional tax on the income of legal persons supplemented by a simple 
progressive tax on the income of natural persons.  
2.10.   All activities of  an industrial nature are authorized in the Industrial Free Zones provided that 
at least 70% of the volume of their production is destined for export, with the exception of 
research and extraction of natural resources.  
2.11.   Investment and export promotion activities were integrated into a single agency, with the 
merging of the Investment Promotion Centre (CPI), the Office of Economic Zones for Accelerated 
Development (GAZEDA) and the Institute for the Promotion of Exports (IPEX), and the 
establishment of the Agency for the Promotion of Investments and Exports (APIEX).  WT/TPR/G/354 • Mozambique  
 
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  2.4  Business  environment  
2.12.   In 2008, the Government approved its first strategy for improving the business 
environment, EMAN I , for the period 2008/2012, which aimed essentially at stimulating the private 
sector to invest in the country for economic growth and thereby co ntribute to job creation and, 
consequently, the redistribution of domestic income.  
2.13.   In order to consolidate the reforms initiated with the implementation of the first strategy, 
and taking into account the development dynamics, the second strategy for the im provement of 
the business environment, EMAN II , for the period 2013/2017 , was approved, with the main 
strategic objectives being the simplification of the business cycle and competitiveness 
improvement.  
2.14.   The Government gives priority to Private Public Dialo gue (DPP), the necessary interaction 
for the improvement of the business environment where joint solutions for problems that hinder 
the development and competitiveness of the private sector are discussed. This interaction takes 
place periodically and at th e highest government level on a bimonthly basis between sectoral 
ministers and their private sector counterparts, and quarterly and yearly with the Prime Minister 
and the President respectively. This process is supported by a matrix of priority reforms, wh ich is 
annually agreed between the Government and the private sector.  
2.15.   An Integrated Electronic Platform for the Provision of Services has been established aiming, 
in a first phase, to integrate the process of licensing of economic activities in order to im prove the 
services rendered at the O ne Stop Shop throughout the country. The Platform will also enable 
interconnectivity between the various actors in the different economic and other areas of activity , 
with the ultimate goal of facilitating and reducing p rocedures, time and costs for the private 
sector, thus contributing to the country's economic growth.  
2.16.   Mozambique established the Competition Regulatory Authority in 2013, with the approval of 
Law 10/2013 of 11 April, which sets out  the legal regime  of comp etition in the exercise of 
economic activity, and is currently in the process of operationalization.  
2.17.   The Consumer Protection Law was approved, Law 22/2009, dated 28 September, which 
establishes the legal regime of consumer protection.  
3  MACROECONOMIC POLICI ES 
3.1.  In recent years, Mozambique has been experiencing a slowdown in its economic growth 
levels, with an average economic growth rate of 6.9% in the last seven years, partly as a result of 
the world economic situation , on the one hand, and the national contex t, on the other.  
3.2.  Despite the slowdown, economic growth was above the average 4.8% in sub -Saharan Africa 
as a result of sound and prudent macroeconomic policies that ensure macroeconomic stability, in 
spite of the existing challenges to the impact of such p olicies on poverty reduction.  
3.3.  Real GDP growth declined slightly from 7.4% in 2014 to 6.6% in 2015, largely due to the fall 
in international prices of the main export products, which tend to discourage the production 
expansion of the export -oriented sectors , and the effects of drought and floods in different regions 
of the country. The military tension in the central region has been a barrier to the free movement 
of people and goods, as well as to the realization of investments in the various areas. GDP per 
capita has followed the same trajectory from US $692 in 2014 to US $601 in 2015 . 
3.4.  The country has also made significant progress on the macroeconomic front, especially in 
fiscal and monetary policies. The monetary policy of the Central Bank of Mozambique duri ng the 
period was aimed at stabilizing the local currency and keeping inflation to a single digit.  
3.5.  Inflation was significantly reduced between 2009 and 2015. However, between 2010 and 
2011 it was above one digit due to rising oil and food prices in interna tional markets. Inflation 
accelerated in the second half of 2015 as a result of floods earlier that year which put upward 
pressure on food prices by the end of 2015, and the depreciation of the Metical, especially in 
relation to the South African Rand, whi ch caused a rise of export prices for those products.  WT/TPR/G/354 • Mozambique  
 
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  3.6.  Recent economic developments show that the country's production is driven mainly by 
investments in mineral resources, industry, services and agro -industry, which was possible due to 
strong macro -economi c reforms, which have attracted foreign direct investment and led to good 
performance in the construction sector.  
3.7.  The country's national accounts show that public investment, as a proportion of GDP, 
remained stable over the period 2009 -2015. In addition, p rivate investment has also remained 
stable thanks to significant flows of foreign direct investment and donor -funded infrastructure 
rehabilitation program mes. The country's external demand has deteriorated since 2011, mainly 
due to the fall in internationa l prices of the country's main export products.  
3.8.  The budgetary policy has been targeted in line with the main objectives of poverty  reduction, 
mainly through the implementation of fiscal reforms and substantial progress in reporting and 
public financial man agement. Revenue collection procedures improved during the period 2009 -
2015, which justified the fiscal revenues increase from 17.6% in 2009 to 26.5% of GDP in 2014.  
4  FINANCIAL AND TAX SE CTOR  
4.1.  The Government is implementing reforms in the financial sector to : 1) modernize and expand 
the financial system; 2) promote the entry of new financial institutions; 3) promote microfinance 
institutions; 4) increase the level of monetization; 5) expand financ ial services in rural areas; 
6) develop financial services  for SMEs and family businesses;  and 7) improve the insurance, 
pensions and social security sectors.  
4.2.  The Government has adopted a series of reform -based measures to liberalize the exchange 
rate, and introduced a multilateral system for determining the exchange rate in the interbank 
exchange market and for foreign exchange auctions in 2005 . 
4.3.  As part of the reform of the tax system, there is a tax and customs reform program me that 
provides for the adjustment and establishment of new taxes and legislation. The objec tives of this 
program me are: 
a) Progressive increase in tax revenues;  
b) Simplification of the tax regime ; 
c) Expansion of the tax base;  
d) Simplification and modernization of the tax system, aligning it with good regional and 
international practices;  
e) Trade facilitation;  
f) Protection of the national and regional economy; and  
g) Improving the security of international trade.  
4.4.  As part of the measures to broaden the tax base, the Tax Education and Tax Popularization 
Campaign was launched in 2010 with a view  to revitalizing the culture of tax payment.  
4.5.  In the implementation of this campaign , and in order to provide greater coverage, the 
establishment of partnerships with various segments of society in the dissemination of messages 
and in the registration of th e NUIT (Unique Tax Identification Number) was prioritized, particularly 
in the encouragement of micro and small businesses, for the benefit of the Simplified System for 
Small Taxpayers (ISPC) introduced in 2010.  
4.6.  Other actions were undertaken as part of the  improvement of the business environment in 
Mozambique, and as a means of facilitating citizens in fulfilling their tax obligations. Among which:  
a) Rationalization of fiscal incentives and promotion of foreign and domestic investment, 
geared to activities  that contribute to income generation and to the fight against 
absolute poverty, including basic infrastructure, agriculture, fisheries, tourism, rural 
development, manufacturing and research and scientific and technological 
development;  WT/TPR/G/354 • Mozambique  
 
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  b) Introduction of  the Single Electronic Window to facilitate trade and establish an 
efficient, effective and sustainable operation and continuous growth for the customs 
clearance of merchandise;  
c) Legislation introducing tax machines (electronic invoicing) was approved in  the 
transmission of goods and services provided by taxable persons, which raises the 
mechanisms of control and supervision adequate and compatible with technological 
modernity for VAT taxable persons;  and 
d) Adoption of Specific Taxation and Tax Benefits Schemes for Petroleum Operations and 
Mining Activity.  
5  AGRICULTURE AND FISH ERIES  
5.1.  Agriculture continues to be the sector which has deserved prominence in the Government's 
policies , aimed at transforming it from subsistence to commercial. Program mes and strat egies 
have been developed  to increase production and productivity so that our agriculture is competitive 
in international markets while at the same time attracting investments in the sector.  
5.2.  Under the Comprehensive Africa Agriculture Development Program (C AADP) of the New 
African Partnership for Development (NEPAD), the Maputo Declaration was adopted, which 
provides for the allocation of 10% of the Government's total budget for agriculture, which will 
result in 6% growth per year.  
5.3.  In May 2010, Mozambique ap proved the Strategic Plan for the Development of the Agrarian 
Sector (PEDSA) 2011 -2020, to boost agrarian development.  
5.4.  The objective of PEDSA is to contribute to food security and farmers ' incomes in a 
competitive and sustainable manner, guaranteeing socia l and gender equity, in order to achieve 
agricultural growth of around 7% per year.  
5.5.  In 2013, as a result of the business meeting led by the then -President of the Republic, the 
CAADP pact was signed, culminating in the approval of the Agrarian Sector Invest ment Plan 
(PNISA).  
5.6.  Although Mozambique has substantial growth indicators, especially self -sufficiency in maize 
production, the country remains a net importer of rice and wheat with an estimated annual deficit 
of about 315,000 tons and 450,000 tons  respecti vely. 
5.7.  In order to reverse the situation, the Mozambican Government has defined as a priority, for 
the five -year-period 2015 -19, the increase in investments in agriculture. With this in mind, the 
Government approved a mechanization program me, which allowed the establishment of about 47 
machinery parks throughout the country, an irrigation program me that resulted in the increase of 
infrastructure areas, as well as research and assistance to producers.  
5.8.  In 2016, the Government prepared the Operational Plan for Food Production, which 
advocates for substantial increases in food production. With the implementation of this Plan, the 
expectation is to reduce the import levels of rice and chicken by 50% by 2019.  
5.9.  It has been noted that the country is diversifying its e xports with the increase of non -
traditional value chains such as pigeon pea, sesame and macadamia. Taking into account these 
results, the Government has defined six priority export value chains, namely banana, sugar cane, 
cashew nuts, cotton, macadamia and  paprika.  
5.10.   In the fisheries sector, the Government approved the Strategic Plan for the Development of 
Tuna Fishery in 2013 and the Aquaculture Development Strategy for the period 2008 -2017 in 2008 
as an effort to increase production and productivity, as wel l as the increase of the income and the 
contribution of this sector in the national economy.  
5.11.   Fisheries currently contribute about 310,000 tons of fish, and the aquaculture subsector has 
a minimum productive potential of 791,000 tons/year of marine fish in ponds and cages, 545,000 WT/TPR/G/354 • Mozambique  
 
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  tons of shrimp/ year, 640,000 tons  of algae/ year and a minimu m potential of 2 million tons/ year in 
freshwater aquaculture.  
6  SERVICES  
6.1  Transportation and communications  
6.1.1   Ports and railways  
6.1.  Taking into account its geographical location a nd the fact that it is a service provider for 
landlocked countries, Mozambique has constructed the Nacala -Velha terminal to handle about 22 
million tons of coal and diverse cargo.  
6.2.  Likewise, in order to increase its capacity, work was done on the Sena railw ay line, as well as 
the completion of the construction of the multi -use terminal in the Port of Beira , in order to 
harmonize the line's capacity with the port's handling, from 6.5 million metric tons to 20 million 
metric tons per year.  
6.3.  The public tender pr ocess was concluded and the contract for the rehabilitation of the Port of 
Nacala, phases II and III , is under negotiation for the construction of accesses to the port, the new 
container terminal, dredging, as well as the acquisition of new and modern carg o handling 
equipment. With this project, we hope to improve efficiency and competitiveness in the Nacala 
Development Corridor.  
6.1.2   Maritime transport  
6.4.  The revitalization of maritime cabotage is crucial to ensur ing the flow of large cargoes and 
goods throughout the country at competitive prices.  
6.5.  To this end, legislative and operational instruments and incentives have been recently 
adopted to stimulate the private sector to invest in maritime cabotage so that products reach 
consumers at more aff ordable prices;  and to ensure the development of the local economy, such 
as: ensuring priority in the mooring of coastal shipping vessels and the reduction of tariffs by 50% 
in national ports.  
6.1.3   Road transport  
6.6.  At the regional level, the principles of road agreements in the con text of SADC regional 
cooperation, as well as mechanisms for the facilitation of cargo and passenger traffic , are being 
implemented in order to optimize the potential and existing facilities in the country.  
6.7.  Road passenger and goods transport has played an important complementary and feeder role 
to other modes of transport within the framework of the integrated transport system at national 
and regional level.  
6.8.  The Government approved the Integrated Program for the Roads Sector (PRISE), currently in 
its second  phase, which consists of establishing the connection of the whole country, using the 
National Road N1 as a backbone, in order to ensure accessibility for areas with agricultural 
potential. Other production -related activities were integrated within this pr ogram me to address 
issues related to road trafficability, namely; (PROMER), Program for the Promotion of Fisheries 
Markets (PROPESCA) and the Technical Secretariat for Food and Nutrition Security (SETSAN).  
6.1.4   Air transport  
6.9.  Mozambique has opened its national a irspace to one of the most prestigious international 
operators, Turkish Airways, which has joined Kenya Airways, Qatar Airways, South Africa Airways, 
Ethiopia and Emirates, thus increasing the offer of flights and air links to more worldwide 
destinations, as well as contribut ing to the growth of the tourism industry.  
6.10.   In order to comply with the Yamoussoukro (DY) Decision, the country has been establishing 
a series of mechanisms for the Single Air Transport Market in Africa by 2017. In this context, WT/TPR/G/354 • Mozambique  
 
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  several actions have been undertaken to liberalize the national airspace in line with the provisions 
of the Strategy for the Integrated Development of the Transport System, such as:  
a) Abandonment of the Mono designation for Duo designation in Bilateral Air Transp ort 
agreements;  
b) Increase of Capacity and Frequencies in Air Services Agreements;  
c) Improvement of aeronautical infrastructure; and  
d) Signing and review of air ransport services agreements with several countries in the 
region and the world. 
6.1.5   Telecommuni cations  
6.11.   A new Telecommunications Law was approved with the aim of ensuring the licensing and 
operation of communications services in an environment of technological convergence and the 
flexibility to deal with rapid changes in the market. The aim of this Law is to stimulate competition 
in the telecommunications market, improve its operation and ensure the basic rights of 
consumers.  
6.12.   There are currently three mobile operators namely, MCEL, VODACOM and MOVITEL , and 
two land -line telephone  operators , which are Mozambican Telecommunications (TDM) and 
MOVITEL. There are also 29 Internet service providers  as well as 2 international submarine cable 
operators.  
6.13.   As part of the restructuring of public companies, the Government approved the merger of 
the mobile telephone  company MCEL with TDM.  
6.14.   In the context of digital migration, the pilot project was completed, consisting of the 
installation of 18 digital emitters in provincial capitals and border areas to avoid interference from 
neighbouring countries.  
6.15.   The mobilization of funding for the implementation of the definitive Migration Project from 
analogue to the digital system is underway. With this project , the expectation is to (i) increase 
television signal coverage to more than 70% of the population; ( ii) increase the qu ality of the 
television signal; (iii) the diversification of television content giving rise to the emergence of 
educational channels , and knowledge of the culture and habits of the Mozambican people.  
6.1.6   Postal services  
6.16.   The Postal Service Law was also approved  with the aim of providing the country with an 
instrument to regulate this sector, as well as to encourage the expansion of private sector 
participation and modernize services provided to the public, and to discipline the actions of postal 
operators who  are already working. This new L aw creates, in an objective and transparent way, 
the conditions for the development of the sector, to ensure greater openness  of postal services in 
the country; stimulate competition with benefits for the user; and encourage ac cess to new and 
advanced information and communication technologies.  
6.17.   The said Law will allow the State to act as a provider of public postal services , and opens 
doors to private action, within a legal framework that allows fair and just competition, in whi ch 
context it assumes the duty to protect certain interests that free market rules would not.  
6.2  Tourism  
6.18.   Tourism is gradually assuming its potential in the national economy, as a result of the 
growth of investments over the last years. The country has been in vesting in tourism mainly 
focused on biodiversity and nature conservation projects and sustainable economic development.  
6.19.   The Government approved the Strategic Plan for the Development of Tourism for the period 
2016-2025, which aims to have Mozambique as th e most vibrant, dynamic and exotic destination 
of Africa in 2025. To this end , concrete actions are being taken which should culminate in the WT/TPR/G/354 • Mozambique  
 
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  increased competitiveness of Mozambique at regional and international levels in the tourism 
sector.  
6.3  Financial serv ices 
6.3.1   Banking and micro -finance services  
6.20.   Mozambique entered into a specific commitment in the area of financial services ( banking 
and other financial services excluding insurance) in April 1994 under the General Agreement on 
Trade in Services of the World T rade Organization,  
6.21.   Mozambique has 18 licensed banks, 11 micro banks, 9 credit unions, 2 investment firms, 2 
electronic money companies, 14 exchange offices, 12 credit and savings organizations and 340 
microcredit lenders.  
6.3.2   Insurance  
6.22.   The sector contributed l ess than  1.4% of GDP in 2011. It has grown  from 5 insurance 
companies in 2003 to 13 in 2011.  
6.23.   The Government approved several pieces of legislation regulating access to and the exercise 
of insurance activity and mediation in Mozambique,  and the Insurance Su pervision Institute of 
Mozambique was established.  
7  MANUFACTURING  
7.1.  Industry in the country is in a phase of revitalization taking into consideration that part of the 
industrial sectors still present low production rates, thus giving a smaller contribution to  the GDP 
growth in the country.  
7.2.  In May 2016, the Council of Ministers approved the Industrial Policy and Strategy for the 
period 2016 -2025 (Resolution No. 23/2016 of 12 September), which specifies the general 
guidelines for industrial development in the co untry, defining the following industries as the 
priority:  
a) Food and agro-industry;  
b) Clothing, textiles and footwear;  
c) Non-metallic minerals;  
d) Metallurgy and manufacture of metal products;  
e) Wood and furniture processing;  
f) Chemistry, rubber and plastics; and  
g) Paper and printing . 
7.3.  In 2008, the Government approved the Strategy for the Development of the Textile and 
Clothing Sector (Resolution 46/2008 of December 3), the main objectives of which are:  
a) Increased cotton production;  
b) The establish ment of a spinning and weaving industry;  
c) The establishment of clothing export factories;  
d) The use of the internal market; and  
e) The establishment of the artisanal production of typical products . 
7.4.  In addition t o the MOZAL's aluminium ingot production , added value , business links and local 
content were promoted in  domestic production with the establishment of the aluminium cable and 
rod factory by MIDAL Cables Company. These actions contribute in some way to the internal and WT/TPR/G/354 • Mozambique  
 
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  external supply of aluminium products with effect on the country's trade balance, in addition to 
better use of the various bilateral and multilateral preferential mechanisms of which the country is 
a signatory for the placement of these products.  
7.5.  The consolidation of the Industrial Pa rks Project, the Development Corridors Strategy, the 
Integrated Transport Development Strategy and the Industrial Free Zone Programs is seen as a 
pillar of the Infrastructure for Economic Development, which is relevant to attracting industrial 
investments and facilitating the development of the productive sector.  
7.6.  In 2011, the Locone Industrial Free Zone (Decree No. 50/2011 of 10 October) and the 
Industrial Free Zone of Minheuene in Nacala, Nampula, (Decree No. 51/2011 of 10 October) were 
established. In 201 4, the Mocuba Industrial Free Zone was establi shed in Zambézia (Decree No.  
29/2014, of 6 June).  
7.7.  Furthermore, in 2016, Decree 41/2016 of 3 October was approved for the establishment of 
the Revubue Industrial Free Zone in Tete. It has an area of 4,484 hectar es and is associated with 
the Iron and Steel Project, which will include upstream and downstream activities, thus 
contributing to:  
a) Add value through the use of national resources, increasing the supply of national 
consumer goods in the lives of populati on, thus replacing imports;  
b) Strengthen the integration and growth of national industries in the value chain of 
mega -projects, favouring small and medium -sized enterprises; and  
c) Promote and encourage the establishment of units for the processing of dom estic 
primary products and their integration into the market.  
7.8.  As part of Rovuma's natural gas projects, the establishment of the Palma and Pemba 
Industrial Park within the Logistics Base of the concession area of the Cabo Delgado Ports has 
been planned.  
8  ENERGY AND MINERAL RES OURCES  
8.1.  The country has abundant energy resources, including coal, gas and renewable resources 
such as hydroelectric power, biomass, wind and sun. Some of these resources - hydro, coal and 
gas - can be the basis for regional energy expor ts, generating export revenues and additional 
economic growth.  
8.2.  Mozambique has the second largest hydroelectric potential in Southern Africa. On the 
Zambezi River  alone , the potential is about 6,000 MW, of which only 2 ,075 MW (Cahora Bassa 
Hydroelectric Pow er Plant) were developed. The total untapped hydroelectric potential is estimated 
at 18,000 MW.  
8.3.  The country's electricity demand growth averaged 10% per annum in the period 2000 to 
2010, and between 2011 and 2013 it grew by 13%, as a result of the strong d ynamics that 
characterize the economy , particularly with the start -up of high -energy projects and the 
accelerated pace of the implementation of the electrification program me. The average growth 
registered in the northern part of the country exceeds the val ue of 20% per year.  
8.4.  During the period 2009 -2015, in the field of mineral resources and energy, among several 
actions  were:  the entry of new operators into the fuel market ; the involvement of the private 
sector in energy production and transportation activi ties; development distribution and use of 
natural gas ; drafting of electricity directories ; and approval of legislation in the mining and oil 
sector, among others.  
8.5.  Mozambique is also witnessing significant growth in the exploitation of fossil fuel resource s, 
based on confirmed reserves of coal and gas.  
8.6.  The coal reserves, whose exploitation in Moatize began in 2011, are estimated at about 25 
billion tons. Despite the need for further evaluation and certification, their exploitation  may be a WT/TPR/G/354 • Mozambique  
 
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  real factor for t he local and regional economy and contribute to raising the national growth rate 
well above the 7% average maintained by the country over the last decade.  
8.7.  Given the relevance and scale of the opportunities and challenges for the period 2014 -2023, 
the follo wing is anticipated:  
a) Increase d access to diversified forms of energy, in a sustainable way, contributing to 
the industrialization and economic and social development of the country;  
b) Strengthening the institutional capacity of the State to implement p romotion, 
facilitation and regulation measures necessary for the development of energy 
infrastructures; and  
c) Strengthening the role of Mozambique in regional economic integration . 
8.8.  It is also expected that this will ensure the adoption and implementation of policies and 
standards that ensure the rational use of mineral resources for wealth creation and the 
harmonious development of the country.  
8.9.  The Government set the following specific objectives by 2023:  
a) Increase of the installed generation capacity by  at least 5,000 MW, assuming the 
current growth of the national and regional markets, and the location of the new 
power stations should, whenever possible, enable the construction of other 
infrastructure important for the d evelopment, such as the Palma -Nacala gas pipeline, 
to serve the natural gas consumption of the Nacala Special Economic Zone and other 
consumption centres along the route, with potential for productive activities;  
b) Creation of a single interconnected national transport network that allow s the 
competitive energy of the Zambezi Valley to be brought to the whole country and 
export markets, as well as allowing the development of three large interconnected 
production centres in the north, centre and south of the country ; 
c) Strengthening of re gional interconnections and the export capacity of the surplus by 
at least 2 ,000 MW;  
d) Improvement of mineral -geologic knowledge of resources in soil and subsoil, inland 
waters, territorial sea, continental shelf and exclusive economic zone, where, 
accord ing to international law, the State has sovereign rights and jurisdiction;  
e) Conversion of mineral resources into one of the main contributors to the country's 
industrialization and development, diversification and economic transformation and 
improvement of the country's balance of payments;  
f) Optimize production and add value to mineral resources;  and 
g) Preservation of the environment, establishing the necessary technical and economic 
conditions.  
9  TRADE POLICIES AND S TRATEGIES  
9.1.  The main objectives of Moza mbique's trade policies and strategies are to create an 
appropriate environment to promote the competitiveness of Mozambican products in international 
markets, without prejudice to the promotion of regional and intra -African trade, which constitutes 
an imp ortan t and priority part of our policy and strategy.  
9.2.  Trade policies and strategies are formulated to assist Mozambique's industrialization process 
through linkages with global value chains, the creation of local value chains, diversification of 
exports, an d the reduction of the country 's dependence on primary products.  
9.1  External trade/trade balance  
9.3.  Trade patterns in Mozambique have changed significantly over the past 10 years , as both 
imports and exports have grown due to foreign direct investment (FDI) in m egaprojects, and it is WT/TPR/G/354 • Mozambique  
 
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  likely that this momentum will continue in the near future, with the country 's trade potential 
becoming a reality, particularly in the extractive sector.  
Chart 9.1 Trade balance  
 
Source:  INE, International Goods Trade Statistics . 
Table 9.1 Main export and import products  
 Megaprojects, extractive industry, 
industrial products  Income crops Food products  
Exports  Aluminium  Cashew nut  Crustaceans  
 Coal Sesame   
 Natural gas  Almond   
 Electricity  Sugar   
 Heavy sands  Cotton   
 Precious stones  Banana   
 Wood  Tobacco   
    
Imports  Oil Sugar  Rice 
 Aluminium   Wheat  
 Electricity   Maize  
 Machinery   Frozen fish  
 Building  materials   Live animals  
 Vehicles   Meat 
 Pharmaceutical products    
 Furniture    
 
9.2  Trade agreements and other preferential initiatives  
9.4.  On 10 June 2016, Mozambique signed the Economic, Final and Comprehensive Partnership 
Agreement with the European Union , awaiting ratification by the Assembly of the Republic. The 
ratification process may take place in 2017.  
9.5.  Mozambique appreciates the extension of the American Initiative for Preferential Access, 
AGOA, until 2025, and is reviewing its strategy to determine how to take more advantage of the 
US market, and to attract US investments into the product areas eligible for preferential access 
under the AGOA.  
9.6.  The preferential agreements signed with the Republic of Malawi and the Republic of 
Zimbabwe remain in force, despite the limited trade flow between Mozambique and these two 
countries.  
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  Chart 9.2 Trade balance - Mozambique/Malawi  
 
Source:  INE, International Goods Trade Statistics . 
Chart 9.3 Trade balance - Mozambique/Zimbabwe  
 
Source:  INE, International Goods Trade Statistics . 
9.7.  At regional level, Mozambique is a member of the SADC , and has been complying with its 
obliga tions under the SADC Trade Protocol. In 2012, Mozambique completed the tariff 
disarmament for all SADC Members for the list of products it committed to liberalize, except with 
South Africa, which was only completed in 2015.  
9.8.  Mozambique will continue trade n egotiations aimed at consolidating the economic integration 
of the SADC, the establishment of the Free Trade Area of the Tripartite Region and the Free Trade 
Area of the Mainland, as part of the deepening of its trade relations in the areas of trade in goo ds 
and services.  
10  MOZAMBIQUE IN THE WO RLD TRADE ORGANIZATI ON (WTO)  
10.1.   Mozambique submitted on 6 January 2017 the Instrument of Acceptance of the Agreement 
on Trade Facilitation of the WTO, following its ratification by the Government on 31 October 2016, 
throug h Resolution 26/2016. In addition, all provi sions of Categories A, B and C have been notified 
to the WTO , and the National Committee for Trade Facilitation has been established.  
WT/TPR/G/354 • Mozambique  
 
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  10.2.   Mozambique is working towards submitting the Instrument of Acceptance of the P rotocol of 
Amendment to the Agreement on Trade -Related Aspects of Intellectual Property Rights (TRIPS), 
before the Eleventh Ministerial Conference of the WTO, to take place in December 2017.  
10.3.   In 2016, with the assistance of the WTO, Mozambique installed a W TO Public Reference 
Centre in the Ministry of Industry and Trade. The Reference Centre is an asset for the 
dissemination of multilateral trade issues and a source of consultation for those who wish to 
pursue the online courses provided by the WTO Institute  for Training and Technical Cooperation.  
11  TRADE -RELATED TECHNICAL AS SISTANCE  
11.1.   In order for Mozambique to be able to take greater and better advantage of opportunities to 
access regional and global markets and to make improvements in the reforms needed to bri ng the 
country into compliance with international obligations under national legislation, trade -related 
technical assistance will continue to be fundamental.  
11.2.   Mozambique has been benefitting from trade -related technical assistance under the 
Enhanced Integra ted Framework, a program me of assistance to Least Developed Countries, and a 
National Implementation Unit of the Integrated Framework has been established within the 
Ministry of Industry and Trade. The Trade Integration Diagnostic Study was also updated in  
December 2014 with the support of UNCTAD.  
11.3.   Aid for Trade is very important and it should assist Mozambique in overcoming supply 
constraints, improving the quality of export products, diversifying and linking with global value 
chains and in the internationa lization of domestic enterprises.  
11.4.   The country has also been receiving support from other bilateral and multilateral sources 
and has been making efforts to include trade in the country's growth and economic development 
policies and strategies.  
11.5.   The Governmen t of Mozambique appreciates the invaluable contribution that has been made 
by all partners in the various spheres of development for the country.  
11.6.   Mozambique needs trade -related technical assistance, as described below:  
a) Training in international trade;  
b) Tax training in e -commerce;  
c) Training of trainers in multilateral trade matters;  
d) Training in trade remedies;  
e) Training in safeguard measures;  
f) Dissemination and implementation of the various multilateral agreements;  
g) Notifications to the WTO;  
h) Specialized training in policy analysis and strategic planning and economic and legal 
analysis of trade negotiations;  
i) Legislation, regulations and procedures development and practices to carry out the 
investigations required to determine alleged case s of dumping, subsidized imports and 
the application of safeguard measures;  
j) Training of jurists and lawyers specialized in multilateral trade;  
k) Implementation of the Trade Facilitation Agreement;  
l) Rules of prior decision under the Trade Facilitation  Agreement;  
m) Rules of Origin;  
n) Customs valuation;  
o) Interface between e -taxation and the Single Electronic Window;  WT/TPR/G/354 • Mozambique  
 
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  p) Electronic monitoring system for international traffic;  
q) Goods evaluation and inspection;  
r) Classification of goods under the Harm onized System ; 
s) Transfer price training;  
t) Coordinated border management;  
u) Measures to avoid erosion of the tax base and transfer of profits;  
v) Assistance in the implementation of competition authority activities;  
w) Assistance in the development of simplified legislation for all systems of mineral 
resources and energy trade;  
x) Assistance in establishing principles and procedures for all tariffs in the energy sector;  
y) Assistance in developing or establishing a simplified system for processing licen se 
applications for commercial operations in the mineral resources and energy sector;  
z) Consulting for the establishment of operational routines in the monitoring of prices 
and tariffs of mineral and energy products;  
aa) Consulting for the establishment o f quality indicators in the minerals and energy 
sector;  
bb) Training in pricing techniques and sustainable tariffs in the minerals and energy 
sector;  
cc) Development of industrial policies and strategies and statistics;  
dd) Development of industrial parks and specific legislation (technical regulations of the 
industrial sector) for sectors defined as priority;  
ee) Management models of Special Economic Zones and Industrial Free Zones; and  
ff) Analysis, monitoring and evaluation of investment projects.  
 
 
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