Mozambique's economy opportunities

Location, Location

The country has several comparative advantages that appeal to strategic investors. Those include its close proximity to Africa’s No.1 market (South Africa), 2,750 km of Indian Ocean coastline, rich mineral resources coupled with vast unused arable land. Thus, its unique geographical location in southern Africa leverages Mozambique’s role in regional trade (especially with its landlocked neighbours) as well as providing scope to attract ‘vertical’ or asset-seeking FDI from transnational corporations (TNCs), mainly in the manufacturing sector.

Mozambique offers good conditions for TNCs to base their southern Africa operations and access the wider Southern Africa Development Community (SADC) markets of 263mn customers worth some $467bn. The surging middle-classes and hence increased purchasing power in South Africa and elsewhere offers lucrative marketing opportunities to TNCs.

Under the 2009 Code of Fiscal Benefits, 10 categories of investment are exempt from customs duty and VAT, as well as enjoy partial tax holidays and other benefits like accelerated depreciation and deductions for professional training.

These include investment in public infrastructure, rural commerce/industry, manufacturing/assembly industries, agriculture/fisheries, hotels/tourism, science/technology, parks, mega-projects, industrial free zones, and special economic zones. The minimum capital threshold to take advantage of any guarantees and fiscal incentives is $50,000 for foreign investments.


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