Why Mozambique

General Overview

  • Lying on Africa South-East coast, it has a prime position to ship natural resources to growing Asian markets
  • Its Strategic geographical position along the Indian ocean is used as corridor for maritime transportation by six land-lock African countries
  • Cabo Delgado region contains one of the largest natural gas reservoirs in the world
  • The country population is just over 22M (twenty two million) with a positive growth rate and a brand new emerging middle class.

Brief History

  • Mozambique was colonized by Portugal in 1505 and became independent in 1975
  • The country was victim of two intense wars lasting between 1971-1975 (against the Portuguese) and between 1981-1992 (civil war for democracy).
  • The population suffered but recovered very well
, The war left all natural resources intact
 the communist regime have imposed a multicultural and multiethnic culture that was well absorbed by the population.


  • The tectonic plate exits Mozambique in Nacala region, creating one of the deepest natural seaports in the world
  • It divides the country into 2 geological environments:
    • Rocky mountains in the north
    • Sandy plains in the south
  • The southern territory contains flat and extreme fertile lands, perfect for any kind of agriculture. Is also rich in heavy sands and water.
  • The northern territory has many plateaus that create different micro-climates, and is rich in minerals such as Coal, Tantalite, Iron Ore, Graphite and Nickel

Political and Economical Situation

  • Democratic country since 1993
  • Rated as 46th world’s most stable country – (Italy is rated 40th)
  • Has country risk level 6 – (eventually upgradeable to level 4)
  • Large private investments (mega-projects) frequent in Mozambique
  • In 2011, Mozambique was the only African country returning its international debts
  • Presidents change peacefully…
  • Country’s average GDP over 7,9% in the past years, with a forecast of 11% for the next future
  • Proven natural gas reservoirs to be 200 tcf, and estimated another 150 tcf
  • Coal reserves estimated over worth 1 trillion dollars
  • Over 10 B$ where spent in the coal extraction in Tete region
  • Over 70 B$ will be spent in the natural gas extraction in the next years
  • Large sums will be spent by the government through B.O.T projects to create needed infrastructures to sustain growth
  • Mozambique seek to be the largest clean energy producer in Sub-Saharan Africa
  • Stable local currency

Investment Environment

  • Lack of cash is still a problem for the Mozambican government
  • Government uses B.O.T. models in PPP to create new infrastructures
  • Government accepts a B.O.T. without a PPP regime but is strictly not advisable
  • Public participation can range between 5% to 20% depending on the equity needed to invest (sovereign guarantees may be or may not be applicable)
  • First right of refusal (FRR) is given to companies who invest on green field projects
  • FRR may lead to a direct negotiation with the government or, in case of a tender, gives 15% extra points or money back in worst case scenario
  • Government expressly suggest to foreign companies to have a local partner (5% minimum) and to focus on local content, which must be clear to local authorities
  • Tax reduction on investments in rural areas
  • Special regime may be applicable on large investments
  • Possibility of cheep land for agriculture
  • Free-Tax zones:
    • Maputo
    • Nacala
    • Beira
  • PPP (Public-Private Partnership) law established in August 2012

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Mozambique – land of good people… A country blessed by nature