Despite it’s relatively unstable economic condition, Mozambique is full of business opportunities for those willing to go for it. Various trading laws have been amended over the last decade to encourage long term investment.
Here are the most profitable business opportunities in Mozambique:
MOZAMBIQUE BUSINESS OVERVIEW
Population: 29.5 million
National currency: Mozambican Metical (MZN)
Economic freedom score: 48.6 (ranked 163rd worldwide)
GDP (PPP): $36.7 billion
Growth (2018): +3%
Mozambique is ranked in 40th position among 47 countries in Sub-Saharan Africa region, with an economic freedom score of 57.5. Currently, Mozambique has an unsustainable external debt burden and relatively weak economic growth. However, the country is full of unexploited sectors than only ask for development.
MOZAMBIQUE’S TOP 5 COMMODITY EXPORTS
- Coke: $1.51 billion
- Coal Briquettes: $1.44 billion
- Raw Aluminium: $907 million
- Petroleum & Gas: $411 million
- Raw Tobacco: $306 million
MOZAMBIQUE’S TOP 5 COMMODITY IMPORTS
- Refined Petroleum: $457 million
- Aluminium: $392 million
- Aluminium Oxide: $376 million
- Chromium Ore: $222 million
- Copper Ore: $175 million
TOP 5 BUSINESS OPPORTUNITIES IN MOZAMBIQUE
1. SOLAR ENERGY
Mozambique has significant and virtually unexploited solar potential. Global horizontal irradiation varies between 1,785 and 2,206 kWh/m2/year. In total, Mozambique has a potential of more than 2.7 GW that could be easily developed. This potential offers many possibilities for grid-connected and rural electrification projects. The Renewable Energy Atlas identified 189 locations for grid-connected power plants, close to existing substations, with a total capacity of 599 MW. The provinces of Maputo and Tete have the highest potential for grid-connected solar projects, essentially due to the favourable grid infrastructure.
2. OIL & GAS
The country’s gas deposits are estimated at 5,000 billion cubic meters and would make Mozambique a major exporter of liquefied natural gas (LNG). The government is predicting strong future growth for the former Portuguese colony on the back of its resource bounty. Good to know US energy firm Anadarko plans to invest $25 billion (22 billion euros) in developing gas reserves off the northern coast of Mozambique.
Mozambique has commercially important deposits of coal (high quality coking coal and thermal coal), ruby, graphite, iron ore, titanium, apatite, marble, bentonite, bauxite, kaolin, copper, gold, and tantalum. It also holds some of the world’s largest untapped coal deposits. The company Vale from Brazil has made major investments in a coking coal mine. It was followed by some other players from Australia and India. With the current investment in infrastructure in the country, and expectation that mining costs in South Africa will rise considerably over the coming years, Mozambique could gain a regional competitive advantage.
The most recent World Economic Forum report on competitiveness called Mozambique one of the top ten tourist destinations that’s expected to record greater growth in demand for leisure travel in the next decade. With pristine beaches and famed hospitality, Mozambique has all the makings of the next ‘Reunion’ or ‘Seychelles.’ The Government of Mozambique has chosen the tourism sector as one of the four priority sectors for investment in the current governmental cycle.
HOW TO START A BUSINESS IN MOZAMBIQUE THE EASY WAY
Mozambique remains a challenging place to do business. Every step you take in the country has to be to the point.
Africa HR Solutions offers a range of reliable business services that can help your organization get started the easy way:
- Hire people in Mozambique without a registered entity (Mozambique Employer of Record)
- Complete payroll rundown and management (Mozambique payroll)
- Central point of contact for all your queries
- Guaranteed compliance to local laws
- Professional indemnity and employer liability
As always, Africa HR Solutions guarantees 100% compliance for your business operations in Africa.