Mozambique: Business Climate & Investment Opportunities for Special Economic Zones

Transcription

1 Mozambique: Business Climate & Investment Opportunities for Special Economic Zones THE HAGUE, 3 JULY 2014

2 PRESENTATION LAYOUT 1. Competitive Advantages 2. Investment Policy 3. Agribusiness Investment Opportunities 4. Special Economic Zones 5. Investment Promotion Agencies

3 COMPETITIVE ADVANTAGES Good and Stable Macroeconomic Enviroment: Fast- Growing Economy with 7.5% average GDP growth in the last decade (expected GDP growth of 8% in the next five years); Strategic and Privileged location (South-Eastern Africa): natural gateway to the middle East, Mediterranean and Asia; Development Corridors, ports, airports, railways, roads, pipelines, facilitates access for the hinterland countries (SADC); 23 millions inhabitants in a region with 250 million consumers (SADC Region).

4 MOZAMBIQUE STRATEGIC LOCATION

5 ACCESS TO PREFERENTIAL MARKETS SADC 250 million consumers; GDP of over 400 billion dollars. Free Access to International Markets: Canada, China; EUA (AGOA); European Union (EBAS).

6 LAW ON INVESTMENT Guarantees: the guarantees envisaged in the legislation in force comprises: Legal protection of investors goods and industrial property rights; Unrestricted import and repayment of loans, equity, royalties and compensation proceeds; Free repatriation of dividends (100%); Equitable compensation in case of expropriation or nationalization; Arbitration through ICC or ICSID for dispute resolution.

7 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 and Japan. Agreements to prevent Double Taxation and Fiscal Evasion: Portugal, Mauritius, United Arab Emirates, the Autonomous and Special Administrative Region of Macau, Italy, South Africa, Botswana, India and Vietnam.

8 Agribusiness Investment Opportunities

9 Mozambican Agricultural Development Model Population: 23 million Total land area: Km² Coast line: 2,515 Km Arable land: 36 million ha Cultivated Land: <10% MOZAMBIQUE: CORRIDORS PEMBA- LICHINGA NACALA ZAMBEZI VALEY BEIRA LIMPOPO MAPUTO Focus on Agricultural Growth Corridors 9

10 Mozambican Agricultural Development Model PROJECTS PRODUCT PROJECTS PRODUTS 1. CEREALS 2. ROOTS AND TUBERS 3. PULSES AND OILSEEDS Maize Rice Wheat Sorghum Sweet Sorghum Kassava Irish Potato Sweet potato Yam Beans Peanuts Soy beans Sesame Sunflower 4. HORTI - FRUITICULTURE 5. LIVESTOCK PRODUCT 6. AQUACULTURE PRODUCT Tomato Onion Banana Citrus Papaw Pineapple Mango Meat Milk Eggs Fish 10

11 Products with High Market Potential Mozambique is essentially an agriculturebased economy, however the country is still importing large quantities of agricultural and food products that may be produced locally (ex. Cereals, fruits, horticulture, meat, dairy products, etc). Products with high market potential (few examples): Rice, Wheat, Cashew nuts, Horticulture, Meat and Dairy Products, Tropical fruits, Tea, Pulses and Soybean.

12 Access to Land According to the Constitution of the Republic of Mozambique land is property of the State and can be used on a lease basis. The maximum period of a land lease is 50 years and can be renewed for a further 50 year period upon request by the interested party. Foreign singular or collective persons may become holders of land use rights provided they have adequately approved investment projects and observe other conditions.

13 Special Economic Zones & PECIALSS ESPECIAL ECONOMIC ZONES Industrial & Free Zones INDUSTRIAL FREE ZONES A Special Economic Zones:..area of general economic activity, C geographically defined, which is subject to a special customs regime under which all goods entering, located, circulating, manufactured or transformed therein or exported therefrom are exempt from customs duties and fiscal charges. Industrial Free Zones: (an) area or unit of industrial activity where the main activity is production for export. Appropriate fiscal, labour and immigration arrangements have been put in place to facilitate movement to and from the SEZ and IFZ and the efficient functioning of enterprises and investors wishing to operate in these zones. The incentives are provided to enable those operating within the zone to fulfill their commercial and financial obligations abroad. The package of incentives comprises exemption from customs duties on the import of machinery, equipment and other goods required for their main activity, and exemption from the corporate tax applicable to its profits, during the project implementation phase.

14 Source: GAZEDA

15 MOCUBA SPECIAL ECONOMIC ZONE (Zambezi Valley) ZONA ECONÓMICA ESPECIAL DE MOCUBA

16 NACALA HARBOUR 16

17 NACALA RAILWAY

18 Nacala International Airport

19 INVESTMENT PROMOTION AGENCIES GAZEDA AND CPI 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. Mandate: Promotion of national and foreign direct investment; Provide institutional assistance to investors; To promote, receive and register investment projects; To guarantee the concession of fiscal and customs incentives to investors; Promotion of business linkage between national and foreign companies, SME s and large undertakings.

20 THANK YOU! GIL BIRES Av. 24 de Julho, nº3549, 8º Andar Predio do INSS/Maputo-Mozambique Bairro Naherenque, Rua do Aeroporto, Tel: Fax: , Cidade de Nacala-Porto Mozambique 08/07/2014