Interview

 “This shows the growing interest of investors from Japan into Mozambique as a strategic partner for both private and public sector development.” Ms. Khemwattie Muando (Sattie Rohit), Investment Promotion Center, is expecting boost of investment form Japan.

Q1. Do you feel benefit of rapid growth of economy in ordinary life?

With an average annual economic grow of 7.5 percent which is expected to continue in 2015, a wide range of choices and opportunities exist amongst the population in terms of access to various essential goods, household items, quality educations, health care services and others basic necessities.

The capital and largest city in Mozambique is Maputo with an estimated population of over one million. Maputo is relatively safe and offers a good range of leisure and sports activities, beautiful beaches, pleasant climate and a range of accommodation, from many-star hotels to comfortable backpacker’s hostels and a wide range of international chains of shopping malls and supermarkets. It also has an interesting cultural life, with film, music, drama, dance, exhibitions and events. There are several international schools and private clinics and modern building constructions.

Q2. Are foreign companies active in Mozambique? Could you give some examples?

Mozambique’s economy, benefiting from continued economic reform, recent discoveries of vast potential mineral and natural resources, expansion of the agriculture/agribusiness, transportation and communications, energy, tourism sectors, infrastructure development and favorable investment policies is constantly attracted large foreign investment from all continents of the world.
 

As a result of its increasing competitiveness, Mozambique has registered substantial inflows of private investment in the last decade. In the last five years only the country received value of nearly 20 billion US dollars.

Many foreign companies are already in various sector of activities such as (Anadarko Petroleum – US; Mitsui and Sojitz – Japan; Baobab Resources – Australia; Indian Consortium International Coal Ventures Private Limited (ICVL); Sasol New Energy Holdings (Pty) Ltd and Orica South Africa (Pty) Ltd – South African; SUMOL + COMPAL AFRICA, SGPS, Ltd – Portugal; Kentz Mauritius Limited – Mauricius; Orlean Invest Holding, Limited – British Virgen Islands; Essar Ports Africa, FZE – UAE) to name just a few.

Q3. Do you see any change in the business relationship between Mozambique and Japan recently?

Mozambique is one of the countries in Africa which attract Japanese investors over the past years. If ever there will be a change to business relationship between the two countries, it can only be to strengthen and enhance the relations receiving more of Japanese know how, transfer of technology, experience and capital into the country.

During the Mozambique-Japan Investment Forum in January 2014 in Maputo, which was attended by 380 representatives from government and private sector, with the aim to promote commercial partnerships and enhance economic exchange, representatives of many Japanese companies expressed their interest in the Mozambican economy.

This shows the growing interest of investors from Japan into Mozambique as a strategic partner for both private and public sector development, such as the development of infrastructure and improvement of transport links.

At the same time, the Government of Mozambique, has undertaken to improve the business environment and bilateral and economic relationship between the two countries.

Q4. What is the most appealing point of Mozambique to Japanese companies?

It is of my opinion, taking into consideration companies from Japan that are presently investing and have intention to start business in Mozambique, the most appealing point of Mozambique to Japanese companies at this stage is to enter into the Mozambican market through public- private partnership, transfer of technology and know-how.

However, there are a few private investors from Japan that are undertaken joint venture with Mozambican entrepreneurs in different sectors of activity such as, processing of sea foods and production of bio fuels and some trading houses are busy registering branch offices.

Japanese energy firms are also looking at Mozambique’s oil and natural gas potential. Many companies from Japan express their interest in providing technologies to build roads, railways and logistics utilities.

Q5. How do you describe the strategic importance of Mozambique for Japanese companies?

According to consulting firm Deloitte, Mozambique is one of three countries that stand out for their growth in Africa, a continent that will become increasingly important in economic terms in the coming years.

The Government of Mozambique is committed to develop economic and business environment. Mozambique have access to significant regional markets because of its privileged and strategic location. It is a country endowed with business opportunities in all sectors.

Q6. Do you have any idea of particular industry that you would like to invite to Mozambique?

Mozambique development potential is rated as one the best amongst many African countries.

Water resources are relatively plentiful, the country’s greatest resources is its abundance of cheap energy – coal reserves, hydroelectric capacity and abundant natural gas reserves.

The coastline stretches over 2,500 km, and the country possesses an abundance of marine resources that are not fully exploited.

Mozambique has considerable mineral resources including gold, gemstones, titanium, coal and natural gas and many big international foreign companies are already investing and showing a growing interest in prospecting.  

Agricultural potential is high, particularly in the fertile northern regions, which accounts for the bulk of the country’s agricultural surplus. The main cash crops are sugar, copra, cashew nuts, tea, and tobacco.

The Government of Mozambique aim is to promote tourism and investment in manufacturing, construction materials, agricultural business, beverages, consumer goods and other sectors such as the exploration of gas and its downstream activities and infrastructure.

Q7. Among local companies could you recommend any we should pay attention?

This will depend on the interest from Japanese companies, maybe specifically, investment state and private companies that are involved in the exploration of oil and gas. There are several cooperation agreement signed between the two Government including the bilateral investment agreement that was signed in 2013 and already enter into force last year.

Infrastructure development is highly recommended and also small and medium size companies are welcome to invest in the form of joint venture with existing companies in sectors of activities such as fisheries, processing, generation of wind and energy power, water treatment and other sector of interest.

Q8. Do you have any advice to Japanese companies that is considering business with Mozambique？

The Government of Mozambique is receptive to foreign investment with the aim to promote economic growth, by the promotion of technological and infrastructural development, the creation and training of national workers, increasing, diversification and substitution of export etc.

The CPI- Investment Promotion Centre assist both foreign and local investors in supporting business registration, licenses, work and resident permits and other institutional coordination.

CPI seeks to bring investors in Mozambique and should be an investor’s primary contact during the initial stage of investment. It is important that an investor interesting in setting up a business should work with reliable consultancy firms under our guidance. Investors must make sure that the study very well the Mozambican market, such as having statistical economic information before taking decision to set up a company in Mozambique.

They should complied with the constitution of Mozambique and be acquainted and have good knowledge with some of the basic Laws and Regulations governing various sectors and sphere of activity, such as the Law & Regulation of Investment, Tax Law, Labor Law, Land Law, the Law governing the minerals and petroleum sectors, just to name a few.

In setting up a new company or buying an existing company, investors should seek legal advice before embarking on any one of these option, especially when it comes to purchasing an already existing entity. Lawyers from CPI and other reliable law firms and consultancy companies can assist with relevant information as to legalities of transactions relating to properties, resident permits an others Laws and regulations mentioned.

CPI welcomes Japanese investors to consider Mozambique as business destination.

(Photos: Mozambique Investment Promotion Centre)