Business Forum Mozambique-Austria

Investment Opportunities in Mozambique

Vienna, May of 2019

Outline

About CTA

CTA´s role on reforms to enable business in Mozambique

Investiment opportunities

CONFEDERATION OF

ECONOMIC ASSOCIATIONS

OF MOZAMBIQUE Non Profit Confederation

Representing the

Private Sector in

Mozambique

Incorporated on April

1996

With own office in

Maputo - Mozambique

Represented in all countrythrough the Provincial andDistrital Business Councils

(DEPs/CED)

Members between sectoral

federations, Associations,

chambers of commerce and

business groupings

130 Entreprises in

National Business

Council

51

Agriculture

Transports

Tourism

2. CTA IN FIGURES

Federalized Sectors

Construction

Trade and Services

Industry

Companies involved,

mainly MSMEs - Micro,

Small e Medium

Entreprises.

14 000

3. CTA IN THE WORLD

CTA COOPERATES WITH DIFFERENT INTERNATIONAL ORGANIZATIONS TO FACILITATE BILATERAL BUSINESS

To Contribute to a favorable

business environment to the

development of the Private

Sector and for an strong

and participative

associative movement,

socially responsible,

capable to influence in the

economic reforms and

develop competitiveness

and entrepreneurial quality.

Mission

THE VISION OF THE CTA IS

TO HAVE A DYNAMIC AND

COMPETITIVE BUSINESS

SECTOR THAT

CONTRIBUTES TO THE

ECONOMIC AND SOCIAL

WELFARE OF THE

MOZAMBICANS

.

Vision• Influence economic and sectoral

policies that ensure a competitive and entrepreneurial quality,

• Promote the private proprety and investment that creats employment and contributes for wealth production;

• Strengthen the associative movement, widen it’s representativeness base and quality of their work;

• Collaborate, actively with all partners to improve the business environment to the development of the entrepreneurial activities;

Goals

4. CTA: MISSION, VISION AND GOALS

CTA´s contrbuition on reforms to enable business in Mozambique

5. CTA´s contrbuition on reforms to enable business

Agriculture and Agro-Industry

Infrastructure and Public Projects

Labor and International Trade

Transports and Tourism6%

Tax burden´s reduction in the sector (Corporate Tax, VAT and Diesel Tax)

Introduction of New Industrial Policy Established mechanism for joint management

(public and private sector) of river basins

Labor law ´s revision to enable investments. Approved new criteria for the fixing of

minimum wage by sector of activity New decree for foreign labor´s recruitment Introduced a Electronics Single Window

New decree of procurement by the Public Sector

Introduced a data base for constructors companies

Introduced new framework to get constructions licence

Introduced a border visas Open skies Reduced cost to enable maritime cabotage Introduced tourism levy Institucionalizados Balcões de Informação

turística nacionais e internacionais

6. REFORMS´s IMPACT IN ENABLING BUSINESS

6%

Time to Export: 23 daysCost to Export: 1 100 USDTime to Import: 30 diasCost to Import: 1 475 USD

Time to Export: 3 days

Cost to Export: 602 USD

Time to Import: 0,5 days

Cost to Import: 399USD

Before AfterElectronics Single Window

Fiscal Framework Reform

Time do Pay Tax: 230 days (per year) Time do Pay Tax: 200 days (per year)Before

After

Reform of Obtain Construction Licence Framework

Númber of Procedures: 17Time to Obtain Licence: 381 days

Before AfterNumber of Procedures:10Time to Obatin Licence: 111 days

Reform on Bankruptcy Insolvency and Recovery Framework

Time to Complete Bankruptcy Process: 5 yearsMass Recovery Rate: 15,2 Cents

Before AfterTime to Complete Bankruptcy Process: 1,5 years

Mass Recovery Rate: 34,1 Cents

Time to Obtain a Business Visa: 7 days

Before Time to Obtain a Business Visa: 30 minutes )

AfterBorder Visa

Indicador DB12 DB13 DB14 DB15 DB16 DB17 DB18 DB19

Starting a Business 70 70 95 107 124 134 137 174

Dealing with Construction Permits 126 126 77 84 31 30 56 64

Getting Electricity 172 172 171 164 164 168 150 100

Registering Property 156 156 152 101 105 107 104 133

Getting Credit 150 150 130 131 152 157 159 161

Protecting Minority Investors 46 46 52 94 99 132 138 140

Paying Taxes 107 107 129 123 120 112 117 125

Trading Across Borders 136 136 131 129 129 106 109 91

Enforcing Contracts 131 131 145 164 184 185 184 167

Resolving Insolvency 143 143 148 107 66 65 75 84

Total (Rank) 139 142 139 127 133 137 138 135

CTA promoveu uma reforma

que culminou com a

aprovação do Diploma

Ministerial 83/2002 que

facilita a aquisição de licença

para construção.

CTA promoveu reforma que

culminou com a introdução da

Janela Única Electrónica que

facilita o comércio

internacional.

CTA propôs a introdução da

lei sobre insolvência e

recuperação empresarial. 10

7. REFORM´S IMPACT IN DOING BUSINESS

Investment opportunities

Agriculture and Agrobusiness (1/4)

1. Agricultural Production Project (Rice and Common

Bean) and Agricultural Mechanization

2. Production and Marketing of SOYA and Sunflower oil

Private

USD 5.183.000

Quelimane, Zambezia

Private

USD 16.516.390

Lipompo Basin, Chókwe

The project will be implemented in an area of 10,000

hectares to produce 60,000 tons of rice and 7,500 tons of

beans, prioritizing land leveling and transfer of technologies

to increase production and productivity.

The aim of the project is to scale up production to meet

demand. The company currently processes 5000 tons of

seeds and produces 3 800 tons of oil a year (75 per cent of

which is sunflower and 25 per cent is soya) and 6000 tons of

cake (split 50:50 between sunflower and soya). It also has a

refinery and so can produce either crude or refined oil. The

main sources of inputs are from local producers.

Agriculture and Agrobusiness (2/4)

3. Production and commercialization of Macadamia

4. Production and commercialization of Banana

Private

USD 1.500.000

Moamba, Maputo Province

Private

USD 16.516.390

Lcihinga, Niassa

The Project consist of 3 Legs:

3000 Ha Commercial Long-term Macadamia Farm

including a 5 % Community development extension;

2000 Ha small out-growers long term farms

Processing Plant.

Production is projected to reach a total of the 3000 Ha

development by 2024

The project consists of the production and marketing of

Banana in the southern part of Maputo Province,

• production capacity of 15,000 banana boxes per week,

include all sizes from singles to XL.

• It is estimated the production for the next 4 years to

reach 65.000 ton.

Agriculture and Agribusiness (3/4)

5. Production and processing of chickens and eggs

6. Vertically integrated cashew business

The project aims to produce and distribute Chickens and Eggs, Process

Chicken in Slaughterhouse. The Project has 3 components, namely:

• Avian Bird Production: Chicken flock with 150,000 Chickens/month;

Hens aviary with a capacity of 3.850 million eggs/month

• Processing Chickens: Capacity: 546,000 chickens/month

• Retail Units: a) Fast Food Restaurant; b) fresh products to sell chicken,

eggs, and c) Fuel pumps, designed to capitalize and maximize the

assets of the Units.

Private

USD 13.300.142

Maputo province

The project consists of:

• Plantation and Sourcing of RCN – concession of 20’000ha,

• Processing plants –a new primary processing unit with 15’000t

capacity

• Tinkaju’s Foundation – It intend to develop a socially and

environmentally sustainable business.

Private

USD 45.000.000

Nampula

Agriculture and Agribusiness (4/4)

8. Production, Processing and Commercialization of Rice

7. Rehabilitation and maintenance of Chokwe irrigation and

Sugar Cane Production

The project intends to

• use the latest technology and machinery used for the cultivation of

rice, including large tractors, harvesters and airplanes

• build a rice mill complex that will reach a capacity of 32MT per

hour of rice by year 5. Potentially land available - 400.000 ha.

Private

USD 3.736.525

Mopeia and Luabo

Districts, Zambezia

PPP

USD 315.800.000

Chokwe, Gaza

The projects aims to:

• Improve the infrastructure for managing and maintaining the

Chokwe Irrigation System to increase production and productivity;

• Production of sugarcane in 5,000 hectares

• Production and processing of corn in 3,000 hectares.

Industry

9. Siderurgical Industry

The project consist of Plant Deployment, Refinery Facility,

Integrated Energy Generation Implementation Subproject

Private

USD 50.000.000

Maputo Province

10. Iron and Vanadium mining and transformation project

Private

USD 20.000.000

Moatize and Chiuta

districts, Tete province

The project will include:

• The mine,

• The processing plant,

• A power generation plant.

• The Construction of a road linking the project area to

Moatize district.

Mineral Resources

Energy

11. Nicoadala 60MWp Solar PV Plant

The project Include:

• Grid-Connection- 220kV Transmission Line (10km),

• 370Wp PV Modules,

• 1MWp Battery Storage.

The area allocated for the project is 120ha.

PPP

USD 103.391.387,6

Nicoadala District,

Zambezia Province

Private

To be evaluated

Chimbunila District, and

Lichinga, Niassa

Province

12. Biomass Energy Generation

The project consists of the installation of units for energy

production, with capacity for 12MW (Chimbunila) and 10MW

(Lichinga).

Infrastructures, Logístic and Communication

13. Construction of an Urban CondoPrivate (Design, Build

and Sell)

USD 19.850.954

Maputo City

• The project is a blend of residential and office space. Total

area of the land 14,901 sq.mtr.

• The site is considered prime location with sea view. And it is

new upcoming high end neighborhood.

• The architectural concept maintains a low density with high

quality of building standards.

www.cta.org.mz

20

Thank You