Investing in Mozambique UK MOZAMBIQUE INVESTMENT FORUM 2010

Transcription

1 Investing in Mozambique UK MOZAMBIQUE INVESTMENT FORUM 2010

2 Structure of Presentation 1. Location 2. Reasons for Good Performance 3. Investment Policies Tax System Guarantees Tax incentives Bilateral Agreement 4. FDI inflows UK FDI inflows 5. Investment Opportunities Industry; Aquaculture 6. CPI s Role

3 Location

4 Reasons for good Performance Impressive Economic Growth for a decade; Reasons: Political stability; Good macroeconomic management; Institutional Reforms; Steady Foreign Investment Flows; Gradual Integration in regional markets; International Community Support;

5 Investment Policy (Legal Framework): Investment Law; Regulation on Investment Law (new); Code of Fiscal Benefits (new).

6 Law on Investments Guarantees: Legal protection of property on goods and rights & industrial property rights; Unrestricted import & 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 Regulation on Investment Law (FDI minimum requirements for eligibility for external remittance of profits and invested capital) Minimum value of Foreign Direct Investment: US$ ; or Generates annual sales not less than US$ ; or Registers annual exports of goods or services not less than US$ ; or Creates and maintains at least 25 direct employment positions for Mozambicans (From 2 nd year of operations).

8 Taxation System Customs Duties on Imports Equipment 5.0% Raw material 2.5% Semi-processed goods 7.5% Finished goods 20.0% VAT 17.0% Corporate tax - General 32.0% Corporate tax Agriculture (until 2010) 10.0% Personal Tax Minimum 10.0% Maximum 32.0% Withholding tax 20.0%

9 General Incentives Exemption from payment of customs duties and VAT on the import of equipment classified as class K in the Customs Tariff Schedule including the accompanying spare and accessory parts Tax Credit Maputo City 5% Other Provinces 10% Accelerated depreciation Legal rates + 50% Professional training deducted from taxable income Other incentives

10 Specific 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

11 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 and Spain. With the U.K: (Signed: March 18, 2004; May 12, 2004 ) 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,.

12 Received & Approved Projects Number of Projects ( ) Projects Received Project Approved

13 Investment by Sector Transport & Comm., 2.69% Mineral Resources, 40.85% Tourism & Accomodation, 8.10% Other, 2.51% Aquaculture & Fisheries, 0.33% Banking & Insurance, 0.25% Industry, 5.50% Agriculture & Agroindustries, 38.85% Construction & Public Works, 0.92%

14 Main Sources of FDI 450,000,000 Top 10 Investor ( ) 400,000, ,000, ,000, ,000, ,000, ,000, ,000,000 50,000,000 0 South Africa Mauritius UK Portugal China Switzerland India Tanzania Italy USA South Africa Mauritius UK Portugal China Switzerland India Tanzania Italy USA

15 UK s Investment by Sector Percentage (%) Industry, 4.77% Hospitality & Tourism, 8.08% Other, 2.56% Construction,0.32% Min. Resources & Power, 1.11% Agric. & Agro-industry, 82.61% Trans. & Comm., 0.24% Services, 0.29%

16 Main Investment Opportunities Sectors Mining Energy Infrastructure Aquaculture & Fisheries Industry & Trade Special Economic Zones

17 Priority Projects 1. Industrial Parks Projects 2. Textile & Garments Industry; 3. Construction Material (Sanitary Ware); 4. Furniture Industry; 5. Fruit Processing Plants; Source: Ministry of industry & trade

18 Aquaculture POTENTIAL FOR PRODUCTION OF MORE THAN TONS OF AQUACULTURE PRODUCTS o o o o Shrimp 542,500 T Algae 640,000 T Fish 790,000 T Mussels & Oysters

19 Investment Promotion Centre (CPI) CPI operates as a one stop shop and provides the following services: Registration of investment Facilitation of incentives Identification of potential partners Identification of business opportunities Institutional support to investors Company registration Business licences Business Linkages Facilitation Access to market (Buying companies) Access to suppliers (DBase of local suppliers) Development of Suppliers (upgrading programs & new investors)

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21 Nacala Special Economic Zone

22 Source: GAZEDA

23 Projects: Development of an industrial park in an area of 50ha in the Nacala Special Economic Zone; Access roads; Water, electricity and Telecommunication Advantages: Easy access to the Port of Nacala; Availability of roads, railways and airport access to the hinterland; Competitive Tax and Customs incentives package: Corporate Income Tax exemption 5 tax years (Developers); Corporate Income Tax exemption 3 tax years (Enterprises); Free exchange regime, offshore activities, special labour and immigration arrangements;

24 Industrial Free Zones Infrastructure Development Plan details: Roads, water, electricity, communications Nacala Port 10 min Rio 50ha 100ha 1 Acess to ZFI2 via Matola Extension: 8.5Km Cost (USDx10³): ETA WTS ZFI 2 - MUNHEWENE 330ha 2 Interior Roads Extension: 7.5Km Cost (USDx10³): Acess to ZFI1 Extension: 4.5Km Cost (USDx10³): ZFI 1 - LOCONE 176ha 4 Interior Roads Extension: 7.5Km Cost (USDx10³): ha 100ha 5 Study for installation of an WTS (Desalination) Nacala Airport 20 min Cost (USDx10³): WTS Water Treatment Station Source: GAZEDA

25 Access Roads 11 Acess to P. Racine Extension: 17Km Cost (USDx10³): Covo 10 Acess to Refinery Extension: 14Km Cost (USDx10³): Interc. Relamzapo until Fernao Veloso Extension: 8Km Cost (USDx10³): P. Racine Fernao Veloso 3 N12 Airport Interc. Extension: 6Km Cost(USDx10³): Aeroporto 6 - Ribaue-P. Relamzapo Extension: 16Km Cost 10³): Nacala-a-Velha-Coutinho Extension: 11Km Cost (USDx10³): Coutinho Nacala-a-Velha Coal T. Nacala Refinery B. Ribaue Quissimanjulo Relamzapo Beach Limestone Reserve 7 R 702 Nacala-a-Velha Extension: 21Km Cost (USDx10³): Acess to Coal T. Extension: 13Km Cost (USDx10³): N12 from F. Veloso interc. until Interc. Relamzapo Extension: 6Km Cost (USDx10³): Acess to ZFI1 Extension: 4.5Km Cost (USDx10³): Acess to ZFI2 via Matola Extension: 8.5Km Cost (USDx10³): Source: GAZEDA

26 GAZEDA Special Economic Zones Office -To promote and coordinate activities related to creation, development and management SEZ and IFZ; - Approve the Investment Proposals; - To guarantee the access of fiscal and non fiscal incentives.

27 Investment Incentives Specific Incentives Creation of basic infrastructures Trade and Industry in the Rural Areas Manufacturing and Assembly Industry Agriculture and Fisheries Hotels and Tourism Science and Technology Parks Large Scale Projects Exemption of payment of customs duties and VAT in the importation of equipment classified in class K of the Customs Schedule and respective spare parts; IRPC Incentives: a) 80% reduction of the Corporate Tax in the first 5 fiscal exercises; b) 60% reduction of this tax, from 6th to the 10th fiscal exercise; c) 25% redution of the tax, from the 11th to the 15th fiscal exercise. Rapid Development Zones Industrial Free Zones Economic Special Zones

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