MOZAMBIQUE-AUSTRIA BUSINESS FORUM - WKO.at · 2019-05-28 · Mozambique, Botswana and Zimbabwe $500...
Transcript of MOZAMBIQUE-AUSTRIA BUSINESS FORUM - WKO.at · 2019-05-28 · Mozambique, Botswana and Zimbabwe $500...
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REPUBLICOFMOZAMBIQUEInvestment & Export Promotion Agency (APIEX)
MOZAMBIQUE-AUSTRIABUSINESSFORUM
INVESTINGINMOZAMBIQUE
Vienna, 27 May 2019
by: Lourenço Sambo– Director General
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PRESENTATIONLAYOUT
WHYMOZAMBIQUE?
LEGALFRAMEWORK&INVESTMENTINCENTIVES
INVESTMENTOPPORTUNITIES
1
2
3
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Banco Nacional de Investimento • 3
WHY MOZAMBIQUE ?
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EconomyIndicators 2017GDPRealValueandGrowth US$13.407MillionandGrowthRate3.7%
GDPperCapital US$466.18GDPbysector(%) Agriculture:22.5%
Construction:1.7%Manufacturing:8.7%Mining:5.6%Services:6.8%
Inflationrate 5.7%Unemploymentrate 25.04%
Currency MeticalMajorBanks MillenniumBIM/BarclaysandStandard
BankLendingRate 20.4%
KEY ECONOMIC DATA
Source:Source National Institute of Statistics
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Categories 2017Population 28.8millioninhabitants
Populationdensity 36,1km2
Gendercomposition 47.81%maleand52.19%female
AgeGroup 0-14yearsold:44,92%15-24yearsold:21,51%%25-54yearsold:27,24%%55+yearsold:6,32%%
RetirementAge Men65yearsold/Women60yearsold
LifeExpectancy Men:55.7yearsoldWomen:59.4yearsold
Language Majority:Portuguese
LiteracyLevel 58.8%
Religion 34%Catholic/20%Muslimsand46%TraditionalReligion
DEMOGRAPHY
Source:Source National Institute of Statistics
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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 $50 billion dollars
of investment in gas projects are under development
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PRIVATEINVESTMENTINMOZAMBIQUESource of FDI inflow to Mozambique: 2009 - 2018
Total: 12.3 Billions US$
America
Europe
Asia
Oceania
Africa
2.89% 38.40%
33.71%
24.61%
0.38%
Source:APIEX 2019
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TOTALINVESTMENTINFLOWINMOZAMBIQUE(2014-2018)
8
AgricultureandAgro-industry
7%
AquacultureandFisheries
5%
ConstructionandPublicWorks
6%
Energy26%
Industry20%
Services19%
TransportationandCommunications
8%
TourismandHospitality
9%
MOZTotalInvestmentflow(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 2019Note that these investment excepts Oil & Gas Sector
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3,094
1,538 1,771
5,185
8,387
12,285
3,379
7241,288
229 697
4,268
7,522
11,455
2,579
83
1,806
1,309
1,074 917 865 830
800641
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
2016 2017 2018 2019 2020 2021 2022 2023
TotalNetFDI
MegaProjects
Other(Non-MegaProjects)
NETFDIBALANCEPROJECTIONFOR2016-2023(US$MILLION)
Source:IMFARTIVConsultationReport(Feb2018)
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Banco Nacional de Investimento • 10
LEGAL FRAMEWORK &
INVESTMENT INCENTIVES
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LEGALFRAMEWORK
v InvestmentLaw(Regulations&CodeoFiscalBenefits;v LandLaw;
v LabourLaw;
v PPP’sLaw;
v EnvironmentalLaw;v PetroleumLaw;v MiningLaw;
v ForexLaw.
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TAXATIONSYSTEM
IMPORTCUSTOMSDUTIES
Equipment5.0%
RawMaterial2.5%
Semi-finishedproducts7.5%
Finishedproducts20.0%
VAT
17.0%
IRPC(Residents&nonResidents)
32.0%
IRPS
Minimum10.0%
Maximum32.0%
WITHHOLDINGTAX
(Dividends)
20.0%
Social Security: v 4% (employer) v 3% (employee)
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TAXINCENTIVES
GENERALBENEFITSq InRespectofImportofGoods:
q Exemption from customs duties and VAT onthe import of capital equipment, spare andaccessoryparts.
q InRespectofIncomeTax:
q InvestmentTaxCredit;q AcceleratedDepreciation;q Tax Deductions (Professional Training; Use ofnewTechnology)
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TAXINCENTIVES
SPECIFICBENEFITSq CreationofBasicInfrastructures;
q TradeandIndustryinRuralAreas;q Manufacturing&AssemblyIndustry;q AgricultureandFisheries;q HotelsandTourismq ScienceandTechnologyParksq LargeScaleProjectsq RapidDevelopmentZonesq IndustrialFreeZonesq SpecialEconomicZonesq MiningActivitiesq Oil&Gasoperations
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AGRICULTURE
INFRASTRUCTURE ENERGY MANUFACTURING TOURISM OIL&GAS
PRIORITYSECTORS
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INVESTMENTOPPORTUNITIESOVERVIEW
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
Nor
th
DC
’s
Sout
h 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
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17
Food&Agro-industry
Clothing,Textile&Footwear
NonMetallicMinerals
WoodProcessing&Furniture
Chemical,Rubber&Plastic
Metallurgical
Paper&Printing
Agrícultural
Minerals
Fishery
Energy
Forestry
Hydro
Strategicgoals
FoodProducts(Flours,Pasta,Oils,Rice,MeatFruitsandVegetables)
Feedstock
Beverages
School,military,hospital,industrialclothes
Footwear
Furniture(School,hospital,administrative),boats
BuildingMaterials(windows,cement,doors,
zincsheets)
Sanitarywareanddecorativeitems,ceramics
Fertilizers
Paints,detergents,varnishes,plasticproducts
Fuels(Methanol,GTLandGPL)
Electriccables,ingots,automobiles,equipment,
packaging
Packaging,paperboard,schoolbook,receipts
Trade & Industry
KeySectorsforthePromotionofIndustrialDevelopment
Agriculture e Food Security Land, Environment & Rural
Development
Sea, Fishery & Inland Water Transport & Communication Public Works, Housing and
Water Resources
Work, Employment and Social Security
Science, Technology, Technical and Higher Education
Education and Human Development
AvailableResources
PRIORITY INDUSTRIES– MAIN PRODUCTS
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Arroz Soja Banana 8 pr
Iorit
y va
lue
chai
ns
VALUE CHAINS WITH GREATEST OPPORTUNITIES IN AGRICULTURE
Sugar
Rice Maize Cassava Poultry Red Meat
Vegetables Sesame
Cashew nut
Soya
Cotton
Beans
Banana
13 S
TRA
TEG
IC V
ALU
E C
HA
INS
- 15 strategic value chains identified; - 8 have been prioritized.
Source: MASA
Sweet Potatoes Potatoes
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DevelopmentofLocalMarketinMozambiquePetrochemical
LNG
PowerMethanol
LPG CNG
GTL
CNG Shell GTL plant in Qatar
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EstimatedInvestment–USD5BlnQuantityofNaturalGas–8.5TCFOutput–400MGJ/aPowergeneration–4000MW
GasTransmissionPerspectiveandRegionalIntegration
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InvestmentOpportunitywithLNGdevelopmentintheRovumaBasin
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Setting up of • Container Terminal • Pipe coating Plant :
Ø Anticorrosion coating of Line Pipe, Risers.
Ø Concrete Weight Coating of Line Ø Thermal insulation of Line Pipe, Risers. Ø Coating of Bends and Fittings. Ø Field Joints and Repair Kits.
• Shipyard • Dry Dock and Ship repair facility • Bunkering &Terminal • Training Centers
Container T/L
Pipe Coating Plant
InvestmentOpportunitywithLNGdevelopmentintheRovumaBasin
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Logistic
Industry of Agro-processing
Small and Large Scale Agriculture
Forest Plantation
Raillway/RoadTransport
Exploration of Natural Gas
Chemical and Other Industries
DevelopmentScenariosforNacalaCorridor
PEDEC-NACALA
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INTEGRATIONBETWEENNATURALRESOURCESDEVELOPMENTANDREGIONALDEVELOPMENT
• DrivingForcestoTransformtheRegionalEconomyandSpace(MineralResourcesDevelopment)
Tete Coal Development
Rovuma Natural Gas Development
Nacala Port and Processing Industries
24/51
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PROGRAMSANDPRIORITYPROJECTS
Point-1: Establish an acceptable and efficient regional / international corridor for general cargo(other than coal)
Point-2: Prevent and minimize negative impacts on society / environment and safety
Point-3: Utilize the improved transportation corridor to promote regional development of the economy and society
232 Projects- 92 High Priority projects - 48 Essencials projects
3 Programs for specific areas 11 Programs by Sectors
Sectorial approach: 37 experts Regional approach: 5 Provinces (Nampula, Niassa, Cabo Delegado, Tete and zambézia (9 Districts)
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INFRASTRUCTUREDEVELOPMENTOFDRYPORTS
Source:MTC
Ports
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PERSPECTIVES
v IMF sees cyclones IDAI and Kenneth slowing Mozambique growth to 1.8% in 2019; back at 6% in 2020;
v Global Data foresees advancement on LNG projects will transform Mozambique on to 10 Global LNG suppliers;
v According to Bloomberg Mozambique expect US$ 95 Billion of Gas revenue over 25 year;
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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
THANKYOU!