- 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.
- 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
- 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:
- PPP (Public-Private Partnership) law established in August 2012