US Trade and Investment Conference
On July 15 and 16, the Embassy of the United States in Maputo hosted a U.S. Trade and Investment Conference. Mozambican President Armando Guebuza, various key Ministers, over 30 US companies and over 150 people participated in this event aimed at informing U.S. companies of business opportunities in key sectors in Mozambique.
In addition, the Mozambique-United States Chamber of Commerce (CCMUSA), the U.S. Departments of Commerce and Agriculture, the U.S. Agency for International Development, Millennium Challenge Corporation and other agencies, along with representatives of U.S. companies already operating in Mozambique were available to share best practices and discuss their experiences in doing business here.
Mozambique is a country rich in investment opportunity. As the attached list of American companies already present in Mozambique suggests, the areas for growth are diverse and wide-ranging. The country is developing ports and transportation/logistics corridors. With nearly 90 percent of arable land uncultivated, the agricultural sector has great potential. In the energy sector, Mozambique is one of the few countries in Southern Africa with untapped capacity for generation. Mozambique also has significant natural resources, including mining minerals, forestry and fishing, coal, natural gas, and potentially oil. Finally, in the area of tourism and eco-travel, Mozambique is considered to be one of the top emerging travel destinations in the world, boasting natural parks and thousands of miles of coastline with pristine beaches.
Main presentations and speeches can be found at the quick links to the right of this page.
An Overview of Trade and Investment Opportunities in Mozambique
For An overview of the investment environment in Mozambique, please refer to the quick links on the right of this page. You can also access:
Energy and Extractive Industries:
- Electricity Market – Mozambique’s electricity demand will grow by 11% each year until 2015 due to an agricultural and manufacturing boom. Recent laws have opened the door for foreign investment, creating equal playing ground for both domestic and foreign investors.
- Solar Power Energy– The electrical grid only reaches 14% of the population. With the support of Mozambique’s Vice Minister of Energy, solar power will create renewable energy to bring power to the countryside and extend the national grid.
- Hydropower – The 2nd largest dam in Africa, Mozambique’s Cahora Bassa supplies renewable energy for many southern Africa countries. Plans to establish more hydropower dams to meet the region’s energy demand are underway.
- Mining Industry – The amount of direct investment in mining activity in Mozambique rose from USD 101 million in 2004 to USD 804 million in 2008.
- Titanium Concentrate Deposits – Major investors (ex. Kenmare Resources) have quickly developed. Since investing USD 460 million in the heavy mineral sands deposit in the northern province of Nampula, Kenmare Resources began production in April 2007 and has produced 701,577 tons of titanium concentrate over the past two years.
- Coal Mining – Just a month ago, a USD 800 million investment was finalized with the Mozambican government to establish one of the largest mining projects in the country. The government is eager to establish more mining projects.
See also the
Presentation by the Ministry of Energy
- Agricultural Planting – Of Mozambique’s arable land, 88% is still unused. Inefficient processing and cultivation has hindered this industry from reaching full capacity. Major exports include: Cashew Nuts, Cotton, Sugar Cane, Fruit, Coconuts, Grains, Cassava
- Agricultural Equipment Supplies – Agriculture is responsible for 80% of national employment. There is a rising need for equipment which will only continue to increase.
- Mineral Water Production – Production of mineral water has increased over 500% since 2005. As access to clean drinking water is still insufficient, all provinces will continue to demand more access to potable water.
- Alcohol Market – Africa has an estimated USD 3 billion market which is relatively untapped. In Mozambique, the per capita consumption of beer is at 6.7 liters.
- Forestry Processing – With large areas available for investment, the forestry industry in Mozambique has seen an annual increase of 17.9%.
- Cattle Rearing – Unable to meet the national demand, local suppliers are struggling to provide for a growing market. Since 1993, the national herd has increased by 7% annually.
- Fish Processing – With a coastline of over 1,400 miles, Mozambique’s fishing industry has immense potential as domestic and foreign interest in Mozambican waters is growing.
- Prawn Export – Seafood is the largest single export in Mozambique, especially prawns. Last year, Mozambique earned $45 million from prawn exports. The abundance of marine resources off the coast has certainly not been fully exploited.
See also the
Presentation by the Ministry of Agriculture
- Tourism – With breathtaking beaches, ideal tropical climate, world class scuba diving and diversified wildlife, Mozambique has a need for hotels, lodges, and resorts to attract a growing tourism industry. The average amount of investment approved for the tourism sector in Mozambique each year was USD 600 million between 2005 and 2008, reaching a peak of USD 977 million in 2007. Hotel attendance has risen by 15% annually since 2005. Investment opportunities include: tourism Infrastructure; Catering Equipment; Leisure Equipment; scuba, sailing, wind surfing
See also the
Presentation by the Ministry of Tourism
- Millennium Challenge Corporation (MCC) – MCC and Mozambique have signed a USD 506.9 million compact to reduce poverty and encourage economic development. As Mozambique’s economy has one of the fastest growth rates in Africa, MCC is focusing on developing water and sanitation, transportation, and land tenure services.
Mozambique is open for investment