Republic of Mozambique
Investment Promotion Centre (CPI)UNLOCKING INVESTMENTOPPORTUNITIESIN MOZAMBIQUE
Japan-Africa Business Forum
Tokyo, June 21, 2014

MOZAMBIQUEo Population: 23.760 mil
o GDP (Nominal): USD
15.355 mil milliono Per capita: USD 630

o GDP Growth Rate : 7.5%
(2013)o Exchange Rate USD/MT:
30.50

MACRO-ECONOMIC INDICATORSINTERNATIONAL CONTEXT

2010

2011

2012

2013

World Economy GDP growth Rate (%)

5.3

3.8

3.3

3.0

• Euro Zone

1.9

2.0-0.7-0.4• Developin Asia (China e Índia)

9.5

7.8

6.7

6.5• Sub-Saharan Africa

5.7

5.2

4.5

5.1

• Mozambique

7.1

7.3

7.3

7.5

World Inflation Rate (%)

3.7

4.8

4.0

3.8

• Euro Zone

1.6

2.7

2.5

1.5

• Sub-Saharan Africa

7.5

9.3

9.0

6.9

• Mozambique

12.7

10.4

2.1

4.2

WHY MOZAMBIQUE

COMPARATIVEADVANTAGESCOMPETITIVEADVANTAGES• Geo-Strategic Location (as a gateway to SADC);• Rich and Diverse Natural Resources Base: Arable land, forests,
natural reserves of mineral resources, hydrocarbons, water;• Competitive, educated and easily trainable labor force;• Diversity and historical & cultural heritage;• Sincerity, Hospitability, Friendliness.
• Second major Investment Destination in Africa in 2013;• One of Fastest Growing Economies in Sub-Saharan Africa in the last
10 years;• Increasing investment in infrastructures across the country (roads,airports, railways);• Stable Investment Legislation (Predictable, Consistent andTransparent);• Access to preferential markets: SADC, USA, EU, China, India.
• Protection against property expropriation;

GOOD
GOVERNANCE• Non-discriminatory

treatment

betweenforeigninvestors;• Public and Private Partnerships are encouraged;• Competitive Fiscal and non-fiscal Incentives;anddomestic

WHY MOZAMBIQUE (CONT.)No restriction to loans and payment of interestsabroad;Transfer of dividends abroad;Mediation according to ICSID or ICC rules in theresolution of investment disputes;
Access to MIGAservices.

and OPIC investment risk cover

BILATERAL TREATIES & AGREEMENTS

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, Spain, Japan, Brazil and Russia。
Agreements to prevent Double Taxation and Fiscal Evasion:
Portugal, Mauritius, United Arab Emirates, the Autonomous andSpecial Administrative Region of Macau, Italy and South Africa.

Investment Flows

600$7,000,000,000

500$6,000,000,000

515

Total Number: 1,525
Total Value: $18.8bn

400$5,000,000,000$4,000,000,000

300
200

250

234

261

$3,000,000,000

261$2,000,000,000

150

100
0

$1,000,000,000
$-

2009

2010

2011

2012

2013

2014 to date

Value of Approvals (USD)Number of Approvals

CPI Approved Investments
2009-2014

10 MAIN FDI SOURCES IN 2013

JAPANESE INVESTMENT EM MOÇAMBIQUELNG ProjectOff-shore, Rovuma Basin

Coal Mining
Revuboe, Tete

Railways and Port
Zambezia

HITACHITechnical Service
Moatize, Tete

JafrixMOZAL Aluminium Smelter,
Beloluane, Maputo

Wood chips
MaputoSeafood processing
Beira, Sofala

MOZAMBIQUE-JAPANTRADE

Main Exported Products: Crustaceans, Seeds andoleaginous fruits, Titanium ores and concentrates,
Marine animal fats, leguminous vegetables.

Main Imported Products: Vehicles, Motorcycles,
Trailers and semi-trailers, Cement, Tractors, Wheat,
Rice, Machinery and its parts, Electric conductors,Glues, Artificial filament threads.

INVESTMENTINCENTIVESTAXATION SYSTEM IMPORT CUSTOMS DUTIES Equipment Raw Material Semi-finished products Finished products

5.0%
2.5%
7.5%
20.0%

VAT

17.0%

CIT – General
Agriculture

32.0%
10.0%

PIT
∗Minimum∗Maximum

10.0%
32.0%

Withholding Tax

20.0%

GENERAL INCENTIVES Exemption from payment of customs duties and VAT on the import ofequipment classified as class “K” in the Customs Tariff Schedule including
the accompanying spare and accessory parts.
 Tax Credit Maputo City
 Other Provinces

5%10% Accelerated depreciation legal rates (+ 50%)
 Professional Training: 5% deducted from the taxable income - IRPC

Special Benefits

Special Benefits• 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• Mining SectorINVESTMENTOPPORTUNITIESAGRICULTURE & AGRO INDUSTRYOVERVIEW – EXCELLENT CONDITIONS FOR AGRICULTURE
Mozambique has ideal growing conditions – plentiful water supply combined withdiverse micro-climates to support a broad range of agricultural commodities
Utilization of Arable Land
36.0

5.4

Million Hectares

15.0%

Utilized Unutilized

Source: Ministry of Agriculture; World Bank

Land Suitability

EXTENSIVE WATERWAYS

30.6

85.0%

ArableLand

Major rivers :Zambezi, Limpopo,
Sabie, and others offer
tremendous irrigation potential

VAST
UNUTILIZEDARABLE LANDHigh Agricultural
Potential

10 DISTINCT AGROCLIMATIC ZONESYEAR-ROUNDPRODUCTION POTENTIAL
Tropical climates offer
potential for year-round,high yield crop production

Suitable for rainfall
agriculture
Moderately suitable forrainfall agricultureVALUE CHAINS WITH GREATEST OPPORTUNITIESInvestment
Opportunities

Rice

Soy

Maize

BananaSugar Cane

Cassava

CottonVegetables

Poultry

Cashew

LivestockForestry

PRIORITIZEDBased on input from current and potential private sector investors in Mozambique,
12 key value chains have been identified, from which 4 have been prioritizedMINERAL RESOURCESMINERAL RESOURCES POTENTIAL FOREXPLORATION Natural Gas;
 Coal deposits; Heavy mineral sands; Bauxite;
 Limestone; Rare Earths metals &tantalite; Gold; Gemstone; Graphite; Marble; Bentonite; Base metals;
 Phosphate.

OIL AND GAS

Sedimentary BasinsWith potential for theoccurrence of Hydrocarbons

NATURAL GAS DESCOVERIES IN
MOZAMBIQUE

LICENSED ACREAGE
OPERATORSAnadarko
Buzi Hydrocarbons
ENI
ENH
PETRONAS
SASOLSTATOILROVUMA BASIN – CONFIRMED RESERVESFUTURE OPPORTUNITIES IN NATURAL GASDOWNSTREAM
LNGExportHousingNG

SocialInfrastructure

Schools
Training Centers
Hospitals

Infrastructure
DevelopmentPorts
Roads

PetrochemicalIndustry

GTL

Bulk
Infrastructure

Rail Network

Fertilizers

Airports

MethanolPower

Plastics
Fuels
Pharmaceuticals

DOWN STREAM INVESTMENT OPPRTUNITIESLNG PROJECTENERGYHYDRO-POWER POTENTIAL: 12.000 MW

Cahora Bassa (2075 MW)

Chicamba & Mavuzi (90 MW)

Matambo - Caia HVTransmission 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;ONGOING
POWERPROJECTSLURIO BASIN
120 MW + 80 MW• CAHORA BASSA - 2075 MW(INSTALLED)• CB North Bank – 1250 MW• MPHANDA NKUWA – 1500
• BOROMA - 200• MOATIZE (COAL) – 2400
• BENGA (COAL) – 2000
• NHATSANGA (COAL) - F.S.
• CHICAMBA – 40 MW• MAVUZI I – 50 MW• MAVUZI II & III 70 MW
TEMANE (GAS)50 MW
R GARCIA (GAS)240 MW
30

POTENTIAL HYDRO POWER PROJECTS
Cahora Bassa North(850 MW)

Mphanda Nkuwa(1300 MW

Lúrio(120 MW)

Malema(50 MW)
Sussundenga Small
Hydropower Plant

Ruo(100 MW)

Mossurize Small
Hydropower Plant
Mavuzi Chicamba
Hydroelectric Station(60 MW)

Massingir Dam(25 MW)

Lupata(600 MW)
Boroma(200 MW)

POTENTIAL POWER PROJECTS
1.

Ongoingdevelopment
Projects in coal fired
power plants for nearly
600 MW;

2.

Phase II accounts fornearly 3000 MW to 5000
MW to be developed fromthermal coal centers.

Benga Coal-fired Power
Plant (300-2000 MW)
Construction ofFuel Storage Tanks(100.000m3)
Moatize Thermal Power
Plant (300-2400 MW)

Kuvaninga Thermal
Power Plant
Beluluane
Thermal Station(50 MW)
Construction of Fuel Storage
Tanks (LPG) (3000 TM)

Production of Biodiesel(Matola, Beira and Nacala)(40 M liters/year)

Temane(500-1000 MW)
Solar Panels Factory
Ressano Garcia Thermal
Power Plant (500-1000 MW)

POTENTIAL ENERGY FROM NATURAL GAS

Nearly 278 MW havebeen
installedfrom
thermal natural gas

INTERCONECTIONCENTER -SOUTH
Power Generation
CentrePhase I: (1x400 kV, HVAC + 1x800 kV,HVDC)= 3,100 MW
Cost estimate: 1,800 MUSD
Phase II: (1x800 kV, HVDC = 2,900 MW)
Cost estimate: 512 MUSD

ChibataVilanculos

Total cost (Phase sI+II) = 2,400 M USD
Load CentreChibuto

RENEWABLE ENERGY RESOURCES AND
POTENTIAL

Geothermal energy is one Wind resources areof the renewable energy characterized to be significant.
options,assumingthat However, the available data
Mozambique is covered shows that there are somepartially
bytheRIFT sites where deep research is
VALLEY;
recommended;
There are about 38 water The strong wind blows fromsprings
which
average June to August, in the
between 50 to 100 degrees Northwest direction.
Celsius.

TRANSPORT AND
COMMUNICATIONSGEOGRAPHICALCONFIGURATIONLong Distances(North-South):Sea and RailNORTHEXISTING RAIL
LINES
RAIL LINES PLANEDIN THE TRANSPORTSECTOR STRATEGY
LegendMapai––Machaila
RibaueLalaua––Machoca
MoatizeTete––Macuze
MandjeNhamayabwe
Inhangoma––
Moatize–––Caia
Massangena–negotiation)(Concession
contract
underMontepuez– ––Mueda
Nhamassonge–Chitobe
Mungari– Chimoio –Murrumbala
Perre– Namarroi
Muxungue– Estaquinha
Mocimboada
Praia.
Savana. – Lioma - Mutuali
Dondo(On going Pre-feasibility study)
Moatize – Nacala (Via Malawi)

CURRENTSITUATION OF THE
COAL LOGISTICS
CENTER

Pre-feasibility study done

SENA LINE OPERATIONAL (Capacity 6 MTPA)(UPGRADE to 20 - 25 MTPA in 3 years)

Under construction

Moatize – Nacala (Bypassing Malawi)
Under negotiation

SOUTH

SPECIAL
ECONOMICZONESNACALA PORT• The Port of Nacala is the third largest with deep waters in Africa’s
Eastern Coast;• The port is undergoing rehabilitation and expansion.

COAL TERMINAL

The project is being implemented
by Vale Mozambique. In addition tothe maritime terminal and deep
water port, it also includes theconstruction of a branch rail line in
an extension of 200 kilometers,
linking the Moatize coal basin,through Malawi, until that district.

RAILWAY LINEThe railway line is one of the largest infrastructures, comprising the Nacala
Corridor, linking the Port of Nacala to the hinterland countries (Malawi andZambia).

NACALA INTERNATIONAL AIRPORT

Under construction, it will featurea runway 3,400 meters long and
45 meters wide, which will allow
the landing of large aircraft suchas the Airbus A340.

NACALA DAM

The Nacala Dam will help increase
the water supply capacity, from 4.2 to6.6 million cubic meters, as well as
increase their availability, from thecurrent 7,200 cubic meters per day to25 billion intended to supply theNacala SEZ.

INVESTMENT OPPORTUNITIES Themed Special Economic Zones;
 Agro-processing; Technology Parks;
 Tourism;
 Services; Industry; Cotton Processing Industry; Textile industry; Infrastructure, among others.

INVESTMENT PROMOTION CENTRE
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.
Incorporation
and businessregistration,visas, etc.
Economicinformationandlegislation

Investment
registration
CPI MANDATE
National andforeign
investment
facilitation

Identify
potential
partners,
projects, etc.

Concessionof fiscal andcustoms
incentives

Institutional
assistanceRua da Imprensa 332 R/C
Caixa Postal 4635
Maputo, Mozambique∗ Tel: +258 21313310∗ Fax: +258 21313325∗ Email: cpi@cpi.co.mz

THANK YOU!