Post on 23-Aug-2020
REPUBLIC OF MOZAMBIQUE Investment & Export Promotion Agency (APIEX)
MOZAMBIQUE-ESWATINI-NORTHERN KWAZULU NATAL
APIEX OBJECTIVE & MANDATE
Maputo, 28 March 2019
by: Lourenço Sambo– Director General
PRESENTATION LAYOUT
APIEX MANDATE
WHY MOZAMBIQUE
INVESTMENT OPPORTUNITIES
1
2
3
Banco Nacional de Investimento • 3
APIEX’S OBJECTIVE &
MANDATE?
APIEX
• Investment and Export Promotion Agency (APIEX) is a public institution that results from the extinction of the Investment Promotion Centre (CPI), the Special Economic Zones Authority (GAZEDA) and the Institute for Export Promotion (IPEX), whose purpose is to promote and facilitate private, public investment and exports, special economic zones, industrial free zones and rapid development zones.
Responsibilities • Development and implementation of actions for the promotion and
management of private and or public investment processes
• Promotion and coordination of actions related to the creation, development and management of special economic areas (SEZ’s) and industrial freeze zones (IFZ’s);
• Promotion of national exports.
INVESTMENT & EXPORT PROMOTION AGENCY
(APIEX)
ROLE OF APIEX
NATURE
• Public institution
• Endowed with administrative and financial autonomy
MANDATE
• Promotion and facilitation of investment and exports
SUBORDINATION
• Minister of Trade & Industry
APIEX
APIEX´s PILLARS
FACILITATION DEVELOPMENT PROMOTION ADVISORY
6
Banco Nacional de Investimento • 7
WHY
MOZAMBIQUE ?
Economy Indicators 2017
GDP Real Value and Growth US$ 13.407 Million and Growth Rate 3.7%
GDP per Capital US$ 466.18
GDP by sector (%) Agriculture : 22.5% Construction : 1.7 % Manufacturing : 8.7% Mining : 5.6% Services : 6.8%
Inflation rate 5.7%
Unemployment rate 25.04%
Currency Metical
Major Banks Millennium BIM/ Barclays and Standard Bank
Lending Rate 20.4%
KEY ECONOMIC DATA
Categories 2017
Population 28.8 million inhabitants
Population density 36,1 km2
Gender composition 47.81% male and 52.19 % female
Age Group 0-14 years old : 44,92% 15-24 years old : 21,51%% 25-54 years old : 27,24% %
55 + years old : 6,32% %
Retirement Age Men 65 years old /Women 60 years old
Life Expectancy Men: 55.7 years old Women: 59.4 years old
Language Majority: Portuguese
Literacy Level 58.8 %
Religion 34% Catholic /20% Muslims and 46% Traditional Religion
DEMOGRAPHY
WHY MOZAMBIQUE?
$5 billion
Nacala corridor rail and port project to
open new markets for farm produce
and boost regional integration.
$2.7 billion
Port of Macuse and 639km
Moatize-Macuse Railway
project to transport coal
$2.3 billion
Chipata-Petauke-Serenje railway
line to
provide an alternative trade route
to the
east coast of Africa via the port of
Nacala
$2.5 billion
Trans-Zambezi rail project to link
Zimbabwe to Mozambique
through Zambia
$500 million
coal terminal to be built by
Essar Ports
$550 million
Techobanine Port open for
discussion between
Mozambique, Botswana and
Zimbabwe
$500 million
upgrade to the Port of Beira in
Mozambique
$750 million
planned for Port of Maputo
to boost handling capacity
to an annual 48 million tons
a year by 2033.
$99.4 million
development for graphite project
in Ancuabe
Over $50 billion
dollars
of investment in gas
projects are under
development
PRIVATE INVESTMENT IN MOZAMBIQUE Source of FDI inflow to Mozambique: 2009 - 2018
Total: 12.3 Billions US$
America
Europe
Asia
Oceania
Africa
2.89% 38.40%
33.71%
24.61%
0.38%
Source:APIEX 2019
TOTAL INVESTMENT INFLOW IN MOZAMBIQUE (2014-2018)
12
Agriculture and Agro-industry
7%
Aquaculture and Fisheries
5%
Construction and Public Works
6%
Energy
26%
Industry
20%
Services
19%
Transportation and Communications
8%
Tourism and Hospitality
9%
MOZ Total Investment flow (2014-2018)
• Energy has the
largest % of
investment inflow
(2014-2018) : 26%
• It is followed by
Industry (20%) and
Services (19%)
• Agriculture and
Agro-industry
received merely 7% of
the total investment
inflows during the
period
Source:APIEX 2019
Banco Nacional de Investimento • 13
LEGAL
FRAMEWORK
LEGAL FRAMEWORK
Investment Law (Regulations & Code o Fiscal Benefits; Land Law;
Labour Law;
PPP’s Law;
Environmental Law; Petroleum Law; Mining Law;
Forex Law.
TAXATION SYSTEM
IMPORT
CUSTOMS DUTIES
Equipment 5.0%
Raw Material 2.5%
Semi-finished products 7.5%
Finished products
20.0%
VAT
17.0%
IRPC
(Residents & non Residents)
32.0%
IRPS
Minimum 10.0%
Maximum 32.0%
WITHHOLDING TAX
(Dividends)
20.0%
Social Security:
4% (employer)
3% (employee)
TAX INCENTIVES
GENERAL BENEFITS
In Respect of Import of Goods:
Exemption from customs duties and VAT on
the import of capital equipment, spare and accessory parts.
In Respect of Income Tax:
Investment Tax Credit; Accelerated Depreciation ; Tax Deductions (Professional Training; Use of
new Technology)
TAX INCENTIVES
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
Mining Activities
Oil & Gas operations
SPECIAL ECONOMIC ZONES & INDUSTRIAL FREE ZONES SPECIAL ECONOMIC
ZONES (SEZ) – Involves investment in
all sectors
– For both export and local markets
– Business must be located in the zone
INDUSTRIAL FREE ZONES (IFZ) – Manufacturing for
exports;
– Should export at least 70% of the products;
– Can be single factory unit (Stand alone).
o ZFI Revúboe
GEOGRAPHIC LOCALIZATION OF SEZ (ZEE) & IFZ (ZFI) IN MOZAMBIQUE
19
Special Economic Zone Developers
IRPC exemption in the first 5 tax years
50% reduction in the rate of IRPC from the
6th to the 10th tax year
25% reduction in the rate of IRPC for the
remaining life of the project
Special Economic Zone Enterprises
IRPC exemption in the first 3 tax years
50% reduction in the rate of IRPC from the
4th to the 10th tax year
25% reduction in the rate of IRPC from the 11th to the 15th tax
year
Special Economic Zone Service Enterprises
50% reduction in the rate of IRPC for
a period of 5 tax years
FISCAL BENEFITS FOR SEZ
(IRPC-Corporate Income Tax)
20
Industrial Free Zone Developers
& Enterprises
IRPC exemption in the first 10 tax years
50% reduction in the rate of IRPC tax from the 11th to the 15th
tax year
25% reduction in the rate of IRPC for the
remaining life of the project
Isolated Free Zone Enterprises
IRPC exemption in the first 5 tax years
50% reduction in the rate of IRPC tax from the 6th to the
10th tax year
25% reduction in the rate of IRPC for
the remaining life of the project
FISCAL BENEFITS FOR IFZ
(IRPC-Corporate Income Tax)
AGRICULTURE
INFRASTRUCTURE ENERGY MANUFACTURING TOURISM OIL & GAS
PRIORITY SECTORS
INVESTMENT OPPORTUNITIES
OVERVIEW
The development of mega-projects to explore the country’s natural resources can only be fully
implemented if supported by complementary infrastructures and services
Agriculture
Logistics Manufacturing
Investment Opportunities
Fisheries Infrastructures
Aquaculture
DC
’s
No
rth
DC
’s
So
uth
1
2
3
4
Development
Corridors
Name Regional
connection
Nacala Malawi
Sena-Zambeze Zambia
Beira Zimbabwe
• Maputo
• Limpopo
• Libombos
South Africa /
Swaziland
1
2
3
4
Source: APIEX
• Mozambique lacks the necessary infrastructures to further improve its economic growth;
• The country has established Development Corridors to connect areas of industry with areas of trade, and foster
economic and social development
AGRICULTURE/AGRIBUSINESS
MOZAMBIQUE AGRICULTURAL POTENTIAL
Significant private sector investments
More than USD 14 billion expected in investments in infrastructure until 2020
Numerous innovative public-private partnerships
Agricultural development seen as critical to country´s development
Government business incentive programs
Specific organizations set up to organize and assist investors
36 million hectars of arable land, of which only 15% (5.2 million hectars) is utilized
Tropical to sub-tropical climate with fertile soil and ample rainfall
Tremendous irrigation potential from major rivers
Strong and growing economy(Average GDP growth ~8% per year between 2000 and 2010)
Reliance on imports: Large import substitution opportunity
Coastal position: Access to international and regional markets
Enabling Environment
for Investments Government Committed
to Market-Driven Growth
Strong Market Dynami
cs
Good Agro-Climatic Conditions
Source: MASA
High
Agricultural
Potential
EXTENSIVE WATERWAYS
YEAR-ROUND PRODUCTION POTENTIAL
10 DISTINCT AGRO-CLIMATIC ZONES
VAST UNUTILIZED
ARABLE LAND
Unutilized
30.6
85.0%
Utilized
5.4
15.0%
Arable
Land
36.0
Land Suitability
Mill
ion
Hecta
res
Suitable for rainfall
agriculture
Moderately suitable for
rainfall agriculture
Utilization of Arable Land
Major rivers :Zambezi, Limpopo,
Sabie, and others offer
tremendous irrigation potential
Tropical climates offer
potential for year-round,
high yield crop production
Mozambique has ideal growing conditions – plentiful water supply combined with
diverse micro-climates to support a broad range of agricultural commodities
AGRICULTURE POTENTIAL
2. ECONOMIC CONTIBUTION
The agriculture sector is the mainstay source of income in Mozambique and
presents a good and growing perfomance
Agriculture Share
GDP Employment
Other sectors Agriculture
Agriculture employs about 80% of
the total labor force. However, the
sector contributes in 22% to the
GDP.
AGRICULTURE SECTOR
AGRICULTURE STRATEGIC PLAN
The PEDSA identifies six growth corridors for agriculture development as well as
specific value chains
Corridor Value Chain
Pemba-Lichinga Potato, wheat, beans, maize, soya, forestry,
cotton, sesame and poultry.
Nacala Cassava, maize, cotton, sesame, fruit, poultry,
groundnuts, cashew and forestry.
Zambeze Valey Rice, maize, potato, cattle, goats, sesame,
cotton e poultry
Beira Corridor Rice, maize, potato, cattle, goats, sesame,
cotton e poultry
Limpopo Rice, horticulture, red meat and poultry.
Maputo Rice, horticulture, red meat and
poultry.
LAND RIGHTS
Land is property of the State and cannot be sold, mortgaged or as a security:
Lease basis for 50 years renewable.
No Free Hold.
Individuals and entities are entitled to apply for the concession for the right to use and exploit land (DUAT) for a determined period of time;
There are full property rights over the infrastructures built on the land.
Arroz Soja Banan
a 8 C
ad
eia
s d
e
Va
lor
PR
iori
tári
as
Sugar
(export.)
Rice Maize Cassava Poultry Meat
Vegetables Sesame
(export.)
Cashew-nut
(export.)
Soy
(export.) Cotton (export.)
Beans
Banana
(export.)
15
CA
DE
IAS
DE
VA
LO
R E
ST
RA
TÉ
GIC
AS
Source: MASA
Sweet
potatoes Potatoes
Macadamia
(export.) Paprica
(export.)
VALUE CHAINS WITH GREATEST OPPORTUNITIES IN AGRICULTURE
- 15 strategic value chains identified;
- 8 have been prioritized.
AGRIBUSINESS OPPORTUNITIES (1-3)
7
Banana
Rice
Maize
Soy
beans
The National production registers the same grows rate with the imports in the last years;
60% of the country rice consumption is imported and Mozambique is the third larger importer of rice in the SADC region
The increasing demand due to the edible food and poultry subsector development;
The soya represents the main component of chikens feedsctock costs (~ 74%)
The food crop in Mozambique and basic food crop in the whole Southern Countries
Offers huge investment oportunities for local agri-processing in order to supply the local and regional markets
Enough capacity installed to contribute to the deficit reduction in the Middle least, Mediterrany market and with minor incidence in the Southern region;
Good competitiveness due to low operational, dredging and export tariffs costs
Highlights from value chains
AGRIBUSINESS OPPORTUNITIES (2-3)
8
Fruit and Vegetables
Sugarcane
Cotton
Cassava
National production almost doubled in the past 5 years and should continue to grow
Ideal climate and land available of high quality Trade treaties with EU and SACU permit export on favorable terms
New uses of cassava as animal feed and as raw material for beer, alcohol and bio-ethanol industries
Costs for cassava are approximately half of other related crops
Increases in international prices heightened profitability from production Opportunities for ginning of cotton for export of high quality cotton lint and
processing of cotton seed into oil and cake
Favourable agro-ecological conditions and potoential of year-round production Counter-Seasonal demand with Middle Eastern and Asian markets – ideal for
export Recent entry of large supermarket buyers such as Shoprite and Massmart /
Walmart
Highlights from value chains
AGRIBUSINESS OPPORTUNITIES (3-3)
9
Cashew
Livestock
Forestry
Poultry
Demand for poultry has grown meaningfully across Africa In Mozambique, consumption is expected to more than triple in 10 years Impact of considerable growth in mining and oil & gas on working population will
gelp fuel domestic demand
Third largest agricultural export from Mozambique Most exports are of raw nuts, providing opportunity for investments in cashew
processing for export markets
High imports of beef, mainly from South Africa, provide opportunity for import substitution
Potential for production of pig, cattle, and goat for local consumption with significant export opportunities for goat meat to the Middle East
Growing global demand for forestry products can be an opportunity for Mozambique, given its strategic location
Large commercial plantations are already being developed in the northern and central regions of Mozambique
Highlights from value chains
FISHERIES/AQUACULTURE
THE AQUACULTURE SECTOR
Excellent conditions for the development of aquaculture in the country (rivers, lakes, dams and long coast);
Mainly consists of the production of marine shrimp, seaweed and freshwater fish such as tilapia.
Many family small-scale subsistence aquaculture
POTENTIALITIES FOR THE DEVELOPMENT OF AQUACULTURE
Marine aquaculture • 7,592 ha for land tanks • 32,124 ha for cage cultivation • 10,591 ha for growing seaweed • Only about 850 ha are exploited
POTENTIALITIES FOR THE DEVELOPMENT OF AQUACULTURE
Aquaculture inland waters • Approximately 258,000
hectares of suitable land are estimated;
• About 180 ha are currently being exploited
• Production in 2015 was 1400 tons of fish
POTENTIALS OF AQUACULTURE IN MOZAMBIQUE
Domestic market The consumption of fish in the country is estimated at 5-10 kg / inhabitant / year Against 18.5 kg / inhabitant / year worldwide average consumption Regional market Neighbouring countries with the highest demand for fish (dry) - 3,000 tonnes are informally marketed annually to neighbouring countries (South Africa, Zimbabwe, Zambia, Malawi, Tanzania, Congo via Zambia)
MARKET POTENTIALS
International market Asia offers higher demand for crab, clams, microalgae Currently about 200 tons of crab and clams are exported annually to Asia
Live crabs boxes being loaded at Maputo
International Airport
CHALLENGES IN AQUACULTURE DEVELOPMENT
Increase aquaculture production and productivity
Ensuring access to the market and financial services
Strengthening research and research services Institutional support
Ordering of aquaculture activity
Improvement of the legal framework
PERSPECTIVES
Increase the production of small-scale aquaculture from 838 tons to 40,000 tons by 2020;
Increase the industrial aquaculture production from 264 tons to 78,000 by 2020.
INFRASTRUCTURE DEVELOPMENT OF DRY PORTS
Source: MTC
Ports
www.apiex.co.mz
www.apiex.gov.mz +258 21321291/2/3
Av. Ahmed Sekou Touré,
2539
P O Box 2539
Maputo, Mozambique
+258 82 305 6432
THANK YOU!