1. Main Characteristics of the
Investment Climate
Mozambique
Paris
03 OCT 2003

2. CPI offers a package of services and support to local and foreign investors who wish to invest in Mozambique.

3. Facts & Figures Population: 17.2 million Bordering 6 Countries
Area: 799,380 Km2
2700 km of coast
Urbanisation Rate: 29%
Over 60 Rivers and Lakes
Official Language: Portuguese
English is Widely Spoken

4. Statistics, utilities and services
Foreign Trade***
Exports US$ 703 million
Imports US$ million
***) - INE

5. Statistics, utilities and services
Main Export Products
Aluminium,Tobacco,Citrus,Coal,Electricity,Cashew nuts, prawns, lobsters, cotton and wood.
Main Import Products
Transport & electrical equipment, machinery,food products, petroleum products and cereals.

6. Statistics, utilities and services
Main Export Markets
Spain, South Africa, USA, Japan, Portugal, Malawi,Zimbabwe,India, U.K.
Main Import origins
South Africa, Portugal, USA, Japan, India e France

7. Statistics, Utilities And Services
Macroeconomic Indicators

8. Statistics, Utilities And Services
Macroeconomic Indicators

9. Economic growth in Africa was dismal in 2002 (at 3.2 %)
The best performers were Mozambique, Rwanda and Uganda,
whose economies grew by 12%, 9.9% and 6.2% respectively
Mozambique managed to attract $518m in FDI in 2001
In the past decade, Mozambican incomes have nearly doubled.

10. Known as the "gateway to Southern Africa”
Macro-economic stability and a political environment conducive to investment.
Massive rehabilitation programme of port and other infra-structural facilities
No exchange controls on the repatriation of profits
Ability to hold foreign currency accounts
Established Export Processing Zones
A large and dedicated labour force available at highly competitive rates

12. DYNAMIC OF FDI

13. Inward FDI Performance Index
Rank
Economy
Value 18
Singapore
13.8
2.2 19
Guyana
0.7 20
Vietnam
1.0
2.0 21
Kazakhstan
3.3 22
Finland
0.5
1.9 23
Mozambique
0.3
1.8 24
Bulgaria
0.8
United Kingdom

14. DYNAMIC OF FDI

15. DYNAMIC OF FDI

16. Investment Priorities
The Mozambican Government welcomes FDI in the following industries
Manufacturing
Mineral Exploration and Processing
Tourism
Fishing and Aqua-culture
Construction
Forestry

17. Investment opportunities
Agriculture, Agribusiness & Livestock
Industry, Forestry & Mining
Manufacturing & Power Generation
Oil & Gas
Tourism & Hunting
Transport & Communication
Banking & Insurance
Industrial Free Zones

18. Investment Guarantees
The security and legal protection of property, rights and other assets;
Unrestricted import and repayment of loan and equity investment capital;
Repatriation of dividends, profits and capital;
Liberalized banking and foreign exchange;
Investment dispute resolution under ICC or ICSID arbitration
Investment risk insurance under MIGA and OPIC facilities.

19. Nacala Development Corridor
LILONGWE
Salima
Lichinga
Mandimba
Cuamba
Malema
Nampula
MOZAMBIQUE
NACALA
BLANTYRE
Tete
Nacala Free Port
Tourism
Agrobusiness
Lilongwe-Nacala Railway Upgrade (~US$250 mn)
Moma Mineral Sands (~US$100 mn)

20. FERTILISER & EXPLOSIVES
BEIRA Development Corridor
ENERGY
PROJECTS
TOURISM
PROJECTS
CHROMITE
BASED
PROJECTS
FORESTRY
PROJECTS
INFRASTRUCTURE
Road, Rail, Electrity,
Pipelines, Telecoms
SUGAR PROJECTS
PORT PROJECTS
ASSORTED
MANUFACTURING
PROJECTS
HOT IRON
BRIQUETTED
PLANT
GAS BASED CHEMICAL
POSSIBILITIES
(methanol
INDUSTRIAL PARKS
FERTILISER & EXPLOSIVES
PLANT
Synfuel Plant
diesel/petrol/waxes

21. Zambezi Valley SDI Moatize(~US$ 500 mn) Thermal Station (~US$ 1bn)
Maravia
Zumba
Chifunde
Macanga
Angonia
Tsangano
Chiuta
Magoe
Cahora Bassa
Changara
Guro
Moatize
Tambara
Mutarara
Chemba
Mocassa
Barue
Marigue
Gorongosa
Caia
Morrumbala
Milange
Mocuba
Lugela
Maganja
da Costa
Mopeia
Chinde
Nicoadala
Namacurra
Quelimane
Inhassunge
Pebane
Marromeu
Cheringoma
Muanza
Dondo
Buzi
Nhamatanda
Gondola
Manica
Sussundenga
S O F A L A
M A L A W I
T E T E
Z I M B A B W E
M A N I C A
Z A M B E Z I A
BEIRA
DONDO
CHIMOIO
MANICA
HARARE
CATANDICA
GURO
LUENDA
CHINDE
MUANZA
INHAMINGA
CAIA
VILA DE SENA
CHEMBA
GORONGOSA
QUELIMANE
PEBANE
MAGANJA
DA COSTA
NANTE
NAMACURRA
LUGELA
NICOADALA
MILANGE
MORRUMBALA
MOATIZE
TETE
PANDA
UNCUA
FURANCUNGO
TSANGANO
ULONGUE
FINGOE
CHIPERA
MPHENDA
SONGO
CHITIMA
MUTARE
Zambezi Valley SDI
Moatize(~US$ 500 mn)
Cahora Bassa - 2 GW
Thermal Station (~US$ 1bn)
Peasant Agriculture
Mpanda Uncua 1.2 GW
Coke by rail to Beira
Sena Line rehabilitation:
Beira-Moatize Km
Inhamitanga-Marromeu-88 Km
D. Ana -Vila Nova Fteira-44 Km
Cost ~342 M US$
Mutarara-1.2 GW
Sena Sugar
Forestry
Coal Terminal (Savane)

22. Natural Gas Pipeline BEIRA Maputo (Mozal, MISP) Sishen Kudu
Mossgas
Pande/Temane
Dev. & pipeline
~US$ 1bn
Field Dev.,
Power Station,
Transmission
~US$ 2 bn
Maputo
(Mozal, MISP)
Sishen
Richards Bay
Pipeline
~US$ 900 mn
Durban
Power Station,
~US$ bn
Gas-based investment projects
Cape Town

23. Limpopo SDI Chibuto Corridor Sands USD 1 bl GONAREZHOU ZINAVE BANHINE
KRUGER
NATIONAL
PARK
LIMPOPO
VALLEY
BANHINE
ZINAVE
GONAREZHOU
Chibuto Corridor Sands USD 1 bl

24. LIMPOPO PARK GONAREZHOU ZINAVE BANHINE LIMPOPO VALLEY KRUGER NATIONAL

25. Investment Guarantees
Treaties and Bilateral Agreements
New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards
Cotonou Agreement
Investment Protection Conventions
Alger, Denmark, Egypt, France, Germany, Nederlands, OPIC, Indonesia, Italy, Mauritius, People’s Republic of China,Cuba, Portugal, South Africa,Sweden, Switzerland, USA and Zimbabwe
Double Taxation Treaties
Portugal, Mauritius , Italy and United Arab Emirates

26. Investment Incentives
General Benefits:
Exemption from import duties on goods in customs tariff class “K”;
Exemption on Stamp duty on company incorporation;
50% Reduction on the rate of real property transfer (SISA);
Investment tax credit varying from 5% to 15% of total investment ;
Deductible expenditure on advanced technology, professional training and construction of infrastructures of public utility;
Accelerated depreciation;

27. Investment Incentives
Special Fiscal Benefits (Rapid Development Zones):
Exemption from import duties on goods in customs tariff class “K” and “I”;
Exemption on Stamp duty on company incorporation;
Exemption from real property transfer (SISA);
Investment tax credit varying from 20% of total investment ;
Deductible expenditure on advanced technology, professional training and construction of infrastructures of public utility;
Accelerated depreciation (2 times the normal rate);

28. Investment Incentives
Special Fiscal Benefits (Agriculture):
Exemption from import duties on goods in customs tariff class “K”;
Exemption on Stamp duty on company incorporation;
50% Reduction on the rate of real property transfer (SISA);
80% reduction in corporate tax;
Deductible expenditure on advanced technology, professional training and construction of infrastructures of public utility;
Accelerated depreciation (2 times of normal rate);

29. Investment Incentives
Special Fiscal Benefits (Hotel and Tourism):
Exemption from import duties on goods in customs tariff class “K”;
Exemption on Stamp duty on company incorporation;
50% Reduction on the rate of real property transfer (SISA);
Investment tax credit varying from 8% to 18% of total investment ;
Deductible expenditure on advanced technology, professional training and construction of infrastructures of public utility;
Accelerated depreciation (3 times normal rate);

30. Investment Incentives
Special Fiscal Benefits (Large Scale projects-over US$ 500million):
Exemption from import duties on goods in customs tariff class “K”;
Exemption on Stamp duty on company incorporation;
50% Reduction on the rate of real property transfer (SISA);
Investment tax credit varying from 5% to 30% of total investment ;
Deductible expenditure on advanced technology, professional training and construction of infrastructures of public utility;
Accelerated depreciation (2 times normal rate);

31. Investment Incentives
Special Fiscal Benefits (Industrial Free Zones):
Exemption from import duties, Value Added Tax, and Specific Consumption Tax on all construction material, machinery equipment and goods for the project;
Exemption on Stamp duty on company incorporation;
Exemption on real property transfer (SISA);
60% reduction on income tax
To qualify the company should export a minimum of 85% and create jobs for Mozambican nationals

32. Investment Promotion Centre
The Investment Promotion Centre - CPI, has the mandate to:
promote and facilitate national and foreign investment in Mozambique;
operates as a “one stop-shop”;
receive and registration of investment project proposals;
facilitate the concession of fiscal and customs incentives;
identify potential partners for joint-ventures;
identify and disseminate investment opportunities ;
provide institutional assistance to investors in the implementation and exploration of investment projects.