Mozambique: A new business magnet
- March 16, 2017
Mozambique – a new business magnet
Republic of Mozambique is a country in Southeast Africa. It is bordered to the Indian Ocean to the east, Tanzania to the north, Malawi and Zambia to the north-west, Zimbabwe to the west, and Swaziland and South Africa to the south-west. The dominating religion in the country is Christianity, followed by the significant Islam religion which is followed by Muslim minorities. Maputo, the capital city of Mozambique attracts a large number of tourists every year. Country’s economy is majorly based on agriculture, but the industry is simultaneously growing now. Food and beverages, aluminium and petrol production, and chemical manufacturing industries are witnessing rapid growth and expansion. Coal mining, investment in transport infrastructure and the development of the natural gas sector are expected to catch growth in near future. Financial services and construction are also fast-growing sectors. Today Mozambique enjoys peace, a measure of political stability and continuity. Today, Mozambique offers stability of business investments.
Agriculture: It has been the primary carrier of country’s economy. However, Mozambique’s domestic production fails to meet the local needs. The country is blessed with the diverse range of climatic condition, which provides opportunities of diverse range of agricultural production. Rice is the highest consumed crop in Mozambique and it has the third highest rice consumption in Southern African Development Community (SADC). Due to an alarmingly growing population, the rice consumption is also elevating rapidly, resulting in creating a huge gap between demand and production. Furthermore, the demand of other cash crops such as cashew, sugar and tobacco is also increasing constantly, hence providing fruitful business opportunities in this sector.
Real Estate:Country’s tourism industry has been growing continuously. With the increasing number of tourists every year, combined with the local population boom, the prices of properties are constantly hiking up in central Maputo. According to a local native, “the average cost of a two bedroom apartment is $700- $800 per month. In an adjoining town, the cost could go up to $4500 per month. With more and more foreigners moving in the city, the cost of real estate property is elevating. More and more number of shopping malls, theatres, warehouses are being constructed. Potential investors and entrepreneurs couldn’t go wrong with this sure shot return filled opportunity.
Hotels:With the large number of tourists visit, a continuous increase in demand of hotel rooms has been witnessed. Not only tourists, but local neighbor also visit Mozambique for official purposes. Visitors demand for good facilities as well as services including wifi, luxurious rooms, comfortable beds, etc. has increased. More and more number of hotels are being constructed in Mozambique to provide accommodation to the tourists and people who require it.
Warehousing:Transportation is one of the biggest challenges in Mozambique. Moving goods from one place to another isn’t easy. Low transport capacity increases warehousing demand as products can be easily kept for few days in the warehouse. The demand for the storage is increasing day by day. Transportation facilities are unable to meet the demands, thus warehousing demand is genuine. This is one such sector which would definitely grow with the growing economy of the country. Further, more and more number of investors and corporate houses are also stepping in Mozambique for business including manufacturing, import export, etc.
Education:This is one of the most significant sectors of the country. Investing in education is an investment for a stable and secured future. At present, the education system has multiple flaws. There is a need of world class schools, colleges and education institutions to promote and spread the education as much as possible.
Construction:With increasing population, the gap between increasing demand of housing, hotel and shopping malls and lack of adequate infrastructure is also increasing. To cope with the increasing demands, construction industry is witnessing constant growth. This is indeed a lucrative opportunity which wouldn’t make one go wrong.
Consumer goods:Mozambique is experiencing a population boom, both in local natives as well as tourists and foreigners moving in the city. This has caused an increase in demand of consumer goods. Small scale industries are already present, but it is difficult for them to expand due to unavailability of sufficient capital. Setting up the consumer goods manufacturing industries in Mozambique would not only serve the demand of people, but would also provide an attractive business opportunity with guaranteed growth.
Mining:With substantial untapped coal reserves (20 billion tonnes), Mozambique has the potential to become Africa’s largest coal producer. Recent gas developments off the coast also nurture Mozambique’s hopes of becoming one of the largest liquefied natural gas exporters by 2020. The country’s geographic position and long coastline allow easy access to the rest of Africa and East Asia. Mozambique also has extensive sources of hydropower and vast arable land, mostly unused.
Today, Mozambique has numerous mega projects, which are not only driving the economy, but also making it one of the fastest growing economies in the world. Mozambique offers a vast variety of investment opportunities for savvy investors, ranging from mining projects and tourism all the way to property development, which would lead to outstanding rewards in the long term. From property developments to mining, infrastructure, business and tourism – all economic sectors in Mozambique are promising great things for the future, so the time to invest is now!
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