MOZAMBIQUE
JUNE
2012
INTERNATIONAL
SUPPORT
KIT OF
OPPORTUNITIES
The Country's Economic Context
Industry Structure
International Trade, Bilateral Trade with Portugal and Opportunities
BES Group’s Internationalisation Support: International Premium Unit
BES Group's International Offering
Contacts
ISKO Mozambique
International Premium Unit/ ES Research - Sectoral Research
Mozambique
Business environment and key factors
Business environment
Ease of doing business
Pemba
139/183
(Doing Business 2012 ranking)
Investor protection
Cross-border trade
Contract fulfilment
Economic Freedom
46/183
136/183
131/183
Nacala
Nampula
Tete
108/179
(Economic Freedom 2012 ranking)
Competitiveness
133/142
Beira
(Global Competitiveness Index 2011-2012 ranking)
Basic Requirements
Infrastructure
Institutions
123/142
105/142
Efficiency Enhancers
129/142
Innovation and Sophistication
115/142
Inhambane
Maputo
Cosec (Risk group)
6
Grade 1 (lowest risk) to 7 (highest risk)
Standard & Poor’s (Rating)
(AAA rating (lowest risk) to D (highest risk, default))
Long term debt in local currency
Long term debt in foreign currency
Outlook
B+
B+
Stable
Capital: Maputo
Population (Millions): 22.5 (2012)
Time Zone: GMT +2
Type of Government: Unitary Republic
Official Language: Portuguese
Surface Area: 744.9 thousand km2
Currency: Metical (MZN)
Religion: Christian majority (Catholics
24%), Muslims (18%).
Sources: IMF, World Bank, COSEC, World Economic Forum, Global Heritage, Commonwealth.
ISKO Mozambique
International Premium Unit/ ES Research - Sectoral Research
03
Mozambique
Macroeconomic Indicators
2011
2012E
2013E
2014E
9.2
10.9
11.8
13.3
7.1
6.8
7.1
6.7
7.2
7.8
12.7
10.4
7.2
5.6
5.6
40.4
35.5
35.5
35.5
-13.0
-12.7
-12.4
-11.9
-4.9
-6.3
-6.0
-5.6
2010
GDP
Current prices
EUR billion
GDP real growth rate
Percentage
Inflation Rate
Percentage
Exchange Rate
45.5
EUR/MZN
Current Account
Percentage of GDP
Fiscal Balance
Percentage of GDP
-11.7
-4.0
E
Estimates
Sources: IMF, Bloomberg.
ISKO Mozambique
International Premium Unit/ ES Research - Sectoral Research
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Mozambique
Economic summary (I)
The economic performance of Mozambique continues to be very favourable. Real GDP growth is expected to have accelerated to
7.1%, in 2011, in line with the forecast in the Economic and Social Plan (PES 2011) and well above growth in neighbouring
countries. Real GDP growth in the SADC is expected to be equal to 4.3%, in 2012, and 4.5%, in 2013.
Between 2011 and 2015, Mozambique is expected to be one of the five fastest growing economies in the world, with real GDP
growth expected to be close to 8%. Mozambique was 14th in Africa in terms of attraction of foreign direct investment since 2003.
South Africa is the country which has promoted the largest number of FDI projects in Mozambique, followed by Portugal, the United
Kingdom, India and Brazil. Over the next ten years, public and private investment in Mozambique will cover a vast range of
opportunities in construction, public works, energy, machinery and equipment, housing and tourism, logistics, services rendered to
companies, agriculture and consumer products. In energy, infrastructure and mining, investment is expected to exceed USD 90
billion.
Although an increase in imports related to the investment effort has resulted in an increase in the Current Account deficit (13% of
GDP, in 2011), a big increase in capital inflows, growth in exports and development of the financial sector have contributed to a
comfortable level of foreign reserves (equal to approximately 5 months of imports). The medium-term outlook continues to be
favourable and an increase in the pace of activity related to mega projects is foreseen, with the start-up of operations relating to
various projects expected over the next few years and seen sustaining an acceleration in economic growth and exports.
The authorities’ commitment to tighter fiscal and monetary policies, prudent budget execution, favourable developments in
international prices, good harvests and a strong Metical, have contributed to a sharp reduction in inflation, which is expected to
remain close to 7% in 2012. Banco de Moçambique forecasts point to a potentially more marked decline in inflation and a
deceleration in prices in 2013 and 2014.
In line with the final objectives for economic growth and inflation for 2012 and in the context of short and medium-term trends, the
Banco de Moçambique reduced the Permanent Facility for Granting Liquidity rate by 100 basis points to 12.5% and the Mandatory
Reserves Ratio by 25 basis points to 8%. The authorities affirm that “conditions exist to maintain a expansionary monetary policy,
in order to allow a greater increase in bank financing to the private sector.”
Sources: IMF, OECD, AICEP, BoM, Ernst & Young, ES Research - Sectoral Research.
ISKO Mozambique
International Premium Unit/ ES Research - Sectoral Research
05
Mozambique
Economic summary (II)
The forecast increase in investment in transport and energy infrastructure necessary for the country’s development should be
compatible with macroeconomic stability and debt sustainability, focusing on integrated projects with proven economic returns
within the terms of the recently presented Integrated Investment Plan. The temporary recourse to non-concessional loans is seen
being replaced, in the long-term, by the availability of revenue associated with the development of natural resources, which should
create the necessary fiscal base required to meet investment commitments and other social priorities. The widening of the fiscal
base – the number of tax payers is expected to be equal to17% of the active population (two million people), by the end of 2012 –
will also be an important contribution to meet future expected costs with internal resources.
The Poverty Reduction Plan (Plano de Acção para a Redução da Pobreza) (PARP 2011-2014) establishes a more inclusive
growth strategy for Mozambique, calling for the strengthening of social welfare, and is at the heart of the Economic and Social Plan
for 2012 (PES 2012). It foresees an improvement in the quality and quantity of public services related to education, health, water
and sanitation, in roads and energy; in the promotion of employment and in the increase of agricultural and fisheries production and
productivity. The unemployment rate is considered to be close to 20%, although up-to-date statistics are not available.
Mozambique enjoys a strategic geographic location within the SADC (Southern African Development Community). It is a gateway
to the region. The aggregate GDP of Southern Africa is currently equal to around USD 700 billion and comprises 300 million
consumers. Therefore, investments made in Mozambique are ideal to allow for easy penetration of the regional market.
Mozambique ranks 18th in terms of business environment amongst the 46 countries in Sub-Saharan Africa, according to the Doing
Business 2012 index (5th in terms of investor protection), ranking 139th out of 183 countries evaluated. In terms of the Index of
Economic Freedom 2012, Mozambique ranked 15th amongst Sub-Saharan African states.
Sources: IMF, OECD, AICEP, BoM , Ernst & Young, ES Research - Sectoral Research.
ISKO Mozambique
International Premium Unit/ ES Research - Sectoral Research
06
Mozambique
International Integration
Mozambique, enjoying a strategic location in Southern Africa, is a member of several
international organisations, of which the following are most notable:
SADC – Southern African Development Community
The SADC, a regional economic integration organisation comprising countries in Southern
Africa, has 250 million consumers in the South of the African continent. Mozambique is
considered to be a gateway to the region. www.sadc.int
CPLP – Community of Portuguese-Speaking Countries
Comprises the following countries: Angola, Brazil, Cape Verde, Guinea Bissau, Mozambique,
Portugal, São Tomé and Príncipe and East Timor. Senegal, Equatorial Guinea and Mauritius
have associated observer status. www.cplp.org
Commonwealth of Nations
Formed by a total of 55 countries, spanning all continents, almost all of which have historic ties
with the United Kingdom. www.thecommonwealth.org
The country’s relationship with the European Union, its second most important economic
partner, is guided by the interim Economic Partnership Agreement (EPA) signed in June 2009,
together with Botswana, Lesotho, Namibia and Swaziland. The interim EPA provides duty free
and quota free access to EU markets and foresees reduced import tariffs on the part of
Mozambique.
Mozambique participates in the African Growth and Opportunity Act (an initiative of the US
federal government) under the terms of which African countries can export products to the USA
exempt of tariffs.
Mozambique is a candidate to EITI – the Extractive Industries Transparency Initiative. In
August 2011, Mozambique’s progress was recognised and a set of additional procedures were
requested. The country has 18 months to complete the requirements identified (by February
2013).eiti.org
Sources: European Commission, CIA, EITI, CPLP, ES Research - Sectoral Research.
ISKO Mozambique
International Premium Unit/ ES Research - Sectoral Research
07
The Country's Economic Context
Industry Structure
International Trade, Bilateral Trade with Portugal and Opportunities
BES Group’s Support to Internationalisation: International Premium Unit
BES Group's International Offer
Contacts
ISKO Mozambique
International Premium Unit/ ES Research - Sectoral Research
Mozambique
Sectoral and regional structure of GDP
Agriculture still represents 27% of Mozambique’s GDP and the province of Maputo almost a third of the
national economy.
Breakdown of GDP by sector (2010)
Breakdown of GDP by province (2009)
3.3%
Niassa
1.2% Mining
4.9%
Cabo Delgado
1.8% Hotels and restaurants
3.8% Construction
5.3%
Gaza
5.2% Electricity and water
9.7% Public
administration, health
and education
26.9% Agriculture
and fisheries
30.6%
Maputo
6.1%
Tete
7.0%
Inhambane
11.7% Transport
and
telecommunications
12.2% Distribution and
repair services
14.5% Financial and
other services rendered
to companies
10.6%
Zambézia
13.1% Manufacturing
12.3%
Sofala
14.4%
Nampula
Source: Banco de Moçambique, INE Moçambique, ES Research - Sectoral Research
ISKO Mozambique
International Premium Unit/ ES Research - Sectoral Research
09
Mozambique
Development Corredores
Nacala, Beira and
Maputo
Development
Corridors
Rovuma
Basin
Tanzania
Mocimboa
da Praia
Zambia
Lichinga
Pemba
 Mozambique is a natural gateway to the northeast
of South Africa, Swaziland, Zimbabwe, Zambia and
Malawi;
Malawi
Cahora
Bassa/
Moatize
 The ports of Maputo, Beira and Nacala are key
elements in the promotion of the development of
their respective hinterlands, being true potential
development corridors;
 The challenge is to link the development of the
corridors to the development of the Mozambican
business community; in agriculture, industry;
mining, services, removing barriers to trade and in
transport.
Nampula
Nacala
Tete
To Harare
Quelimane
To Harare
ZIMBABWE
Chimoio
Beira
Mega energy projects
To Harare
 Cahora Bassa and Mphanda Nkuwa Hydroelectric energy
Vilankulo
 Moatize e Benga - Coal
 Rovuma Basin – Oil and Natural Gas (various
discoveries were announced by Anadarko, in
2011)
Ports
Inhambane
To Johannesburg
Xai Xai
South Africa
Sources: CPI – Investment Promotion Centre, ES Research - Sectoral Research
ISKO Mozambique
International Premium Unit/ ES Research - Sectoral Research
Indian
Ocean
Swaziland
Maputo
Airports
Moza Bank
agencies
Main Roads
Rail lines
10
Mozambique
The economy’s sectoral structure (I)
There are currently eighteen financial institutions in the Mozambican financial system. However, the four
largest banks account for over 80% of banking revenue. The Banco Internacional de Moçambique (BIM),
controlled by the Portuguese group, BCP, and by the Mozambican treasury, is the largest bank in the
country.
BIM has the highest market share (around 40%) in terms of banking revenue, leading also in terms of
total assets and loans granted. Second in the list of the largest Mozambican banks is Banco Comercial e
de Investimentos (BCI), owned by Caixa Geral de Depósitos (51%) and BPI (30%), followed by Standard
Bank (South African), both with a market share, in terms of banking revenue, in excess of 15%.
The largest banks operating in Mozambique, 2010
FINANCIAL
SYSTEM (I)
Bank
Banking Revenue, 2010
(Meticals millions)
Growth Rate 2009-2010
(Percent)
BIM – Banco Internacional de Moçambique
6 560.0
30
BCI – Banco Comercial de Investimentos
3 220.0
33
Standard Bank
2 857.3
17
Barclays Bank Mozambique
1 548.7
19
Banco Procredit, S.A.
546.0
2
African Banking Corporation (Mozambique)
431.4
11
FNB – First National Bank Moçambique
417.7
39
Moza Banco
294.5
46
Sources: Banco de Moçambique, KPMG.
ISKO Mozambique
International Premium Unit/ ES Research - Sectoral Research
011
Mozambique
The economy’s sectoral structure (II)
BIM and BCI are both amongst the 100 largest banks in Africa, ranked 77th and 99th, respectively, whilst
Standard Bank (Group) is the largest African banking group.
BES, through its affiliate, BES Africa, holds 25.1% of Moza Banco’s capital (Moçambique Capitais, held
by Mozambican investors, is the majority shareholder, with 50.4%). In 2011, Banco Unico was launched
by the Portuguese groups, Visabeira and Amorim (Gevisar S.G.P.S., 62%). In addition, the Portuguese
state holds 49.5% of the capital of Banco Nacional de Investimentos.
The expansion of banking operations in Mozambique continues to be a priority for the Banco de
Moçambique. The number of districts with bank branches increased from 27 to 58, between 2007 and
2012 (June). Currently, 488 branches are in operation and 504 are authorised.
Coverage of the financial institutions’ networks, by province, 2012 (June)
FINANCIAL
SYSTEMS (II)
Provinces
Branches in operation
Branches authorised
169
177
Maputo Província
48
53
Nampula
Sofala
47
45
57
46
Tete
Gaza
30
30
34
33
Ihnambane
29
29
Manica
23
27
Zambézia
21
23
Cabo Delgado
Niassa
14
10
15
11
Maputo cidade
Sources: Banco de Moçambique, KPMG.
ISKO Mozambique
International Premium Unit/ ES Research - Sectoral Research
012
Mozambique
The economy’s sectoral structure (III)
Approximately a mere 10% of Mozambique’s arable land (48 million hectares) is under cultivation. The
country has enormous potential in terms of irrigation. Vast hydrographic basins remain largely undeveloped
(Zambeze, Save, Limpopo). The reason for this underdevelopment is largely due to a lack of infrastructure:
roads, irrigation and storage, areas in which the investment effort is now increasing.
Within the context of the SADC, Mozambique is one of the best-endowed countries in terms of land, which,
given low levels of mechanization and usage of modern agricultural techniques, has led to a wide consensus
in terms of its enormous potential in the agricultural sector.
Uncultivated arable land, SADC, 2009
(Thousand km2)
848.8
AGRICULTURE (I)
542.9
442.5
379.0
20.0
19.7
10.5
0.1
Malawi
Swaziland
Mauritius
122.2
Lesotho
157.5
Zimbabwe
200.4
D.R. Congo
255.0
Zambia
Botswana
Madagascar
Namibia
Mozambique
Angola
South Africa
256.0
Tanzania
380.1
Sources: FAO, CPI Mozambique, PES 2011, ES Research - Sectoral Research.
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International Premium Unit/ ES Research - Sectoral Research
013
Mozambique
The economy’s sectoral structure (IV)
Agriculture was classified as a priority sector in the 2012 Budget, with 11.6% of total expenditure earmarked
for the sector. The priority given to the sector is a reflection of alignment with the objectives of the Programa
Estratégico para o Desenvolvimento Agrário (PEDSA 2010-2013) (Strategic Program for Agricultural
Development), which aims for average annual growth in the agricultural sector of at least 7%, a doubling of
production, the intensification of livestock replenishment, the increase in poultry production capacity and good
management of natural resources.
In order to increase the availability of foodstuffs, the government will continue to focus its attention on
increasing production on family farms (cereals, horticulture and root crops), on making available quality seeds
to farmers and on the construction and reconversion of irrigation systems (the Mozambican government aims
to invest around USD 540 million in irrigation, over the next ten years, in order to stimulate production and
productivity in the agricultural sector. The PES 2012 foresees the restoration of 5 thousand hectares of
irrigated land in Gaza Province and the construction of irrigation systems in the provinces of Sofala, Tete and
Zambézia).
AGRICULTURE (II)
In the Save Valley (Inhambane) public works are also planned relating to the construction of two irrigation
systems, one covering an area equal to 2 thousand hectares, for plantation of rice, corn, black-eyed peas and
horticultural products. The objective is to double the amount of irrigated land in Mozambique by the end of the
decade, to a total of 60 thousand hectares, aiming, in particular, to promote the production of rice, area in
which assistance from China has been very significant, and in horticulture The country has 15 large
hydrographic basins with potential to support an increase in agricultural productivity and production, of which
nine are shared with other countries,
The development of the agricultural and agro-business sectors continues to be a priority in the fight against
poverty and dependence on foreign foodstuffs. Over 80% of cultivated land is used to produce basic food
crops without irrigation. Corn, mandioca and black eyed peas occupy around 60% of total cultivated land.
Horticulture occupies a mere 5% and cash crops (sugar cane, tea, vegetable oils, tobacco) only 6%. Where
non-irrigated agriculture is conducted, the risk of loss of crops due to unfavourable weather conditions is very
high in some regions: it exceeds 50% in all of the area south of the Save River and can attain 75% in the
interior of Gaza province.
Sources: CPI Mozambique, PES 2012, INP, ES Research Sectoral Research.
ISKO Mozambique
International Premium Unit/ ES Research - Sectoral Research
014
Mozambique
The economy’s sectoral structure (V)
The 2011/2012 agricultural season represented an increase in production of around 8.5% in relation to
2010/2011, in line with forecasts in the PES 2012. Of particular note was the increase in the production of
mandioca and tomato which grew by around 13%. In terms of their size of production, cereals (corn,
sorghum and rice), leguminous plants (black eyed peas, peanuts) and potatoes stand out.
AGRICULTURE (III)
Tobacco, sugar, cashew nuts and cotton are some of the traditional exports of Mozambique:
i) Tobacco – This sector is dominated by the largest agricultural company in Mozambique (9th in terms
of turnover in the country and 2nd in terms of employment), the Mozambique Leaf Tobacco, Lda (Tete,
Zambézia), subsidiary of the North-American company, Universal Corporation. Mozambique was the
fourth largest tobacco producer in Africa, in 2010, after its neighbours (Malawi, Zimbabwe and
Zambia);
ii) Sugar – Mozambique has four sugar-cane distilleries: Marromeu and Mfambisse, both located in
Sofala Province, and Maragra and Xinavane, in Maputo Province. New projects are slated for the
provinces of Zambézia, Sofala and Gaza. The 2011/2012 season represented a significant increase in
the production of sugar-cane, of over 50% in relation to 2010, resulted not only from a significant rise
in the area under cultivation, but also from improvements in productivity;
iii) Cashew nuts – There has been a recovery in production of cashew nuts resulting from active policies
to support the replacement of old cashew trees with faster-growing varieties and the expansion of the
area under cultivation. Nampula Province is the main producing region, representing around 50% of
total production. Currently, production is around 100 thousand tons per annum, the government’s
objective being to double production by the end of the decade. A large part of the crop is exported in
bulk, in particular to India, the world’s leading importer of cashew nuts, due to lack of internal
processing capacity.
iv) Cotton – Cotton production has traditionally been concentrated north of the Zambeze River, where
agricultural and weather conditions are more favourable for its cultivation. Nampula and Cabo
Delgado provinces harbour around two thirds of total production. Some of the leading international
players in the sector are present in Mozambique: Plexus (United Kingdom), OLAM (Singapore); China
Africa Cotton (China). The Asian market absorbs three quarters of Mozambican cotton fibre exports.
Sources: CPI Mozambique, PES 2012, INP, ES Research - Sectoral Research.
ISKO Mozambique
International Premium Unit/ ES Research - Sectoral Research
015
Mozambique
The economy’s sectoral structure (VI)
The bio-fuels sector also remains a strategic priority so as to reduce the country’s dependence on oil.
Foreign companies have been investing in this area, including Portucel (which has the rights to use and
develop 356 thousand hectares in the provinces of Manica and Zambézia), which is testing various
varieties of eucaliptus, with a view to the future development of an integrated forestry management,
pulp and energy production operation, strategically located in relation to emerging Asian markets.
Petrobrás Biocombustível (Brazil), which already produces sugar in Mozambique, has also revealed its
intention to begin ethanol production from molasses. Additionally, GALP Buzi (a partnership between
GALP and Companhia do Buzi, in Sofala Province) has announced its intention to start producing and
exporting bio-diesel, made from jatropha, in 2014. Moçamgalp (a joint venture between Visabeira Group
and GALP) is also undertaking an agro-industrial bio-fuels project.
AGRICULTURE (IV)
According to CEPAGRI – Centre for the Promotion of Agriculture, there is enormous potential for
cultivation of cereals, fruits, flowers and horticultural produce for local and export markets. The country
already exports various products, namely, flowers, citrus fruits, pepper and paprika to European
markets. The Zambeze Valley represents an excellent opportunity for the agricultural sector, according
to preliminary feasibility studies.
In the Nacala Corridor, a partnership between Brazilian, Japanese, Mozambican institutions and FAO
aims to promote the development of agri-business, with recourse to the so-called Nacala Fund, entailing
USD 2 billion in investment in the initial phase. This project, based on an initiative carried out in Brazil in
the 1970s relating to the development of the Cerrado region, seeks to recreate this project in this African
savannah region, which has similar climate and soils. Support for private initiative in agriculture is a
central element of the project, with the Fund aiming to capture financing in Brazil and Japan for the
agricultural development of the Nacala Corridor.
Sources: CPI Mozambique, PES 2012, INP, ES Research - Sectoral Research.
ISKO Mozambique
International Premium Unit/ ES Research - Sectoral Research
016
Mozambique
The economy’s sectoral structure (VII)
Mozambique is a country with many opportunities in the fisheries sector, due to its coast which has
a length equal to 2 750 km and an Exclusive Economic Zone (ZEE) of 586 thousand km2 of ocean
with a wide diversity of fish stock.
Industrial and semi-industrial scale fishing are the commercial fishing segments which are
essentially geared towards the external market. However, it is important to note that the
development strategy for the Artisanal Fishing and Fish Farming segments aims to increase
production in these segments and create the means for them to add value so as to be able to
access international markets, as well as improve supply in the local market, contributing to food
and nutritional security of the population and improvement in living standards.
FISHERIES
The estimated potential of fishing resources is equal to around 300 thousand tons, of which
around 270 thousand tons are in the ocean and 30 thousand tons are in inland waters. The PES
2012 estimates that a total production volume of 178.2 thousand tons was reached in 2011 and
forecasts an increase of 18.4% in 2012. The mains species of commercial fishing, shrimp and
kapenta, have already reached maximum production capacity. There is scope to increase
production of deep water crustaceans (prawns, Norway lobster, lobster and crab) once appropriate
means are made available.
Mozambique enjoys favourable weather conditions and area available for fish farming. In terms of
resources and potential for the development of maritime fish farming, the Mozambican coast can
be divided as follows: Northern Region (suitable for the farming of bivalves molluscs, with
conditions also favourable for the farming of shrimp), Central Region – North (favourable for
farming of shrimp, mullet and mangrove crabs) and Southern Region (suitable for farming of
shrimp and crab). Specific areas, such as Inhambane Bay and some areas in Maputo Bay, are
suitable for bivalve mollusc farming). There is also potential for algae farming in the north of the
country (Cabo Delgado and Northern Nampula) and in the South, in Inhambane.
Sources: CPI Mozambique, PES 2012, INP, ES Research - Sectoral Research.
ISKO Mozambique
International Premium Unit/ ES Research - Sectoral Research
017
Mozambique
The economy’s sectoral structure (VIII)
MINERAL AND ENERGY
RESOURCES (I)
The energy sector and natural resources will continue to play a key role in the future of the Mozambican
economy. The implementation of big projects in the field of hydroelectric energy (Hidroeléctrica de
Cahora Bassa), natural gas and oil exploration, coal production (Tete), heavy sands – Moma (Nampula)
and Chibuto (Gaza) – and other metals, industrial minerals and precious and semi-precious stones, will
be key areas of development for the country in the next few decades. In 2011, three of the five largest
Mozambican companies hailed from these sectors.
The importance given to mining within the scope of the PES 2012 – the
Economic and Social Plan for 2012, reflects the economic development
objectives for the mineral resources sector set out in the government’s
Five Year Plan for 2010-2014. Mozambique has significant potential and
diverse resources, as evident in the enormous natural gas reserves of 80
to 110 trillion cubic feet.
Frequent, large-scale discoveries of natural gas in Mozambique’s offshore
fields marked 2011 and the first few months of 2012. Following the
announcement, in October 2011, by the North-American company,
Anadarko Petroleum, the operating company in Area 1, with a
shareholding equal to 36.5% (the remaining partners are Mitsui&Co of
Japan, with 20%; Bharat Petroleum and Videocon Industries, both from
India, with 10% each; the state-owned Mozambican company, Empresa
Nacional de Hidrocarbonetos, with 15%; and Cove Energy from Ireland, with 8.5%) of exploration
results pointing to natural gas reserves equal to 10 trillion cubic metres, estimates were revised upwards
repeatedly to between 30 and 60 trillion cubic feet. At the end of February 2012, the Shell Group (the
Netherlands) made a proposal to acquire Cove Energy’s share. This position has been hotly contested,
indicative of the level of interest that the oil and gas sector in Mozambique is attracting, resulting in a
higher offer by the state-owned Thai group, PTT Exploration and Production, equal to USD 1.9 billion.
An Indian consortium, comprising ONGC Videsh and GAIL, also expressed an interest in the position,
which it subsequently withdrew.
Sources: CPI Mozambique, KPMG, PES 2012, INP, ES Research - Sectoral Research.
ISKO Mozambique
International Premium Unit/ ES Research - Sectoral Research
018
Mozambique
The economy’s sectoral structure (IX)
The disposal of Cove Energy’s position re-opened the discussion about the taxation of capital gains
on the sale of shares in mining projects in order for Mozambique to gain a greater share in the profits
resulting from the various exploration projects underway. Cove Energy has confirmed that it has been
informed by the government of Mozambique that a capital gains tax equal to 12.8% will be applied on
the gain resulting from the sale of the asset.
Area 4, an offshore exploration block has also yield a set of very significant discoveries. In this block,
where the Italian company ENI is the operator (70%), in partnership with Galp Energia (10%), Kogas
of South Korea (10%) and Empresa Nacional de Hidrocarbonetos of Mozambique (10%), estimates of
natural gas reserves have been repeatedly increased, having been set at between 47 and 52 trillion
cubic feet, on 16 May 2012.
MINERAL AND ENERGY
RESOURCES (II)
The size and quality of the natural gas discoveries merits a study on the implementation, on a largescale, of a LNG project, perhaps in the Palma district, in the north of Cabo Delgado Province, geared
towards the national, regional and international markets. By 2018, Mozambique may become the
second largest natural gas exporter in Africa, only behind Nigeria.
In distribution, GALP Energia (Portugal) operates a network of 29 services stations (14 in Maputo
city), with stations in all of the provinces, with the exception of Niassa.
Presently, the only gas fields in production are located in Inhambane Province, at Temane, from
where gas is exported to South Africa, by the South African company, Sasol. In June 2012, a new
central natural gas processing unit was inaugurated which will allow for an increase in annual
production of around 50%, thereby guaranteeing greater supply in the external and domestic markets
and rendering feasible the construction of gas-fired thermoelectric power stations at Ressano Garcia
and Chokwé.
Sources: CPI Mozambique, PES 2011, INP, ES Research - Sectoral Research.
ISKO Mozambique
International Premium Unit/ ES Research - Sectoral Research
019
Mozambique
The economy’s sectoral structure (X)
Petronas of Malaysia is also undertaking projects and geological and seismic studies relating to oil and
gas exploration in Mozambique,in Areas 3 and 6. In Areas 2 and 5, the main operator is the Norwegian
company, Statoil, (90%), with the remaining 10% pertaining to Empresa Nacional de Hidrocarbonetos.
The Australian multinational Rio Tinto has also announced the discovery of natural gas amongst the
coal reserves that it is developing at Moatize, in Tete Province, and is planning to conduct prospection
to determine the volume of reserves and their respective economic value.
As regards coal, Mozambique is considered one of the countries with greatest global potential. There
is every indication that the country will soon be a leading producer and exporter of this mineral
resource, which has been extensively prospected in the country, due to the high demand in the
international market for coal, particularly in China, Brazil, India, Japan and South Korea.
MINERAL AND ENERGY
RESOURCES (III)
The majority of Mozambique’s coal reserves are located in Tete Province, but it is also to be found in
the provinces of Manica and Niassa. Coal resources can be found in three basins: Moatize, lower
Zambeze and Mucanha-Vusi. Coal deposits have also been confirmed in the districts of Changara,
Cahora Bassa, and in parts of Magoe, in Tete Province, as a result of recent exploration activity.
Large international companies such as the Brazilian company, Vale (Moatize), the Australian company,
Rio Tinto (Benga and Zambeze), the British companies, Ncondezi Coal Company (Ncondezi) and
Beacon Hill Resources – Minas de Moatize (Moatize), JPSL of India (Changara), Eta Star from Dubai
(Moatize), ENRC (Cahora Bassa), Minas de Revubué – Talbot/Nippon Steel (Revubué) are active in
Mozambique.
Sources: CPI Mozambique, PES 2011, INP, ES Research - Sectoral Research.
ISKO Mozambique
International Premium Unit/ ES Research - Sectoral Research
020
Mozambique
The economy’s sectoral structure (XI)
The Rio Tinto Group and Ncondezi Coal (United Kingdom) have announced their intention to build
thermoelectric power stations to supply electricity, not only to their mining operations, but also to
supplement the electricity network in Mozambique and South Africa.
The transport of coal output, which is expected to increase substantially over the next few years,
continues to be one of the main problems that the leading operators have been facing. Recent studies
indicate that Mozambique may have mineral coal reserves in excess of 23 million tons, the mining of
which should make the country the leading exporter of coal in Africa in the medium term. An
improvement in road, rail and port infrastructure to facilitate export of coal is a key factor in rendering
feasible these exploration projects, particularly in Tete Province. In August 2011, Vale transported the
first shipment of coal to the port of Beira, via the Sena Railway Line. The new coal terminal at Beira
Port, a partnership between Rio Tinto and Vale with Caminhos de Ferro de Moçambique, represents an
important step in the development of the necessary export infrastructure for the coal sector.
MINERAL AND ENERGY
RESOURCES (IV)
In relation to industrial minerals, limestone has been prospected in various regions where it is known to
exist, namely in the districts of Búzi and Muanza, in Sofala. As a result of limestone and plaster
prospecting, mineral reserves of raw materials needed to supply new cement factories have been
identified. These plants are to be located in the provinces of Maputo, Sofala and Tete.
Since exploration of the heavy sand reserves at Moma - one of the largest in the world - began, in
2007, the Irish company, Kenmare Resources, has invested in the mining of ilmenite (a titanium ore),
zircon and rutile. An increase in investment, of approximately EUR 150 million, has been announced to
raise production from 800 thousand tons to 1.2 million tons. In June 2012, Delta Zambeze Consortium
won the tender to develop the heavy sands at Chibuto (Gaza), which had been explored by the
Australian company, BHP-Billition, up until 2009.
Some companies have been conducting technical and economic feasibility studies relating to the
exploration and production of base metals such as iron, copper, nickel and zinc, and also graphite (Cabo
Delgado) and phosphates-fertilizer extraction. If these projects go ahead, they will imply the mining of
mineral resources that has never previously been conducted in the country.
Sources: CPI Mozambique, PES 2011, INP, ES Research - Sectoral Research.
ISKO Mozambique
International Premium Unit/ ES Research - Sectoral Research
021
Mozambique
The economy’s sectoral structure (XII)
Demand has increased in the construction sector in Mozambique, given the large projects planned in
the mining, energy and transport sectors.
The country’s economic expansion requires investments in infrastructure, particularly around the three
main logistics corridors (Maputo, Beira and Nacala) which serve, not only the coal exporting activity,
but also to promote the development of other sectors of the national economy and the link to
neighbouring inland countries. Mozambique, by means of its road and rail infrastructure, grants access
to the sea to neighbouring countries without a coastline (Zambia, Malawi, Zimbabwe, Swaziland, D.R.
Congo, Botswana). These facilities are also indispensable for promoting development in the interior of
the country. The Strategy for the Development of
Transport System (Estratégia para o
Desenvolvimento do Sistema de Transportes), currently being implemented, aims to conduct a
profound transformation in terms of logistics infrastructure in the country.
CONSTRUCTION AND
INFRASTRUCTURE (I)
The capacity of the Sena Railway Line is to be doubled to 6 millions tons per annum by 2013, although
this will still be insufficient to meet expected demand. Once this first phase is complete, the stateowned company Portos e Caminhos de Ferros de Moçambique (CFM) plans to continue work with a
view to increasing capacity on the Sena Line to 20 millions tons per annum by 2016. In the meantime,
the modernisation of the coal terminal at Beira Port, inaugurated in June 2012, to allow the processing
of 6 million tons per annum at a cost of USD 200 million, has equipped the port with a modern facility
for reception and unloading of railcars, warehousing and loading of ships. Equally important will be the
planned repair works on the Machipanda Line, connecting Beira with Zimbabwe.
Additional railway lines are planned for Tete Province. A memorandum was signed with the
government of Malawi, which calls for the construction of a railway line between Moatize and Nacala,
crossing the south of Malawi. Nacala Port, a unique, deep-water port on the East African coast, offers
excellent conditions for the transhipment of cargos from wide-berth ships to smaller vessels, which will
deal with distribution of goods at smaller ports in East Africa. The projects underway at Nacala Port
include a coal terminal, belonging to Vale.
Sources: CPI Mozambique, PES 2011, INP, ES Research - Sectoral Research.
ISKO Mozambique
International Premium Unit/ ES Research - Sectoral Research
022
Mozambique
The economy’s sectoral structure (XIII)
The government of Mozambique is also in negotiations with the Development Bank of China in
relation to the development of the Nacala-a-Velha Port and the construction of a rail link to Moatize,
to facilitate the installation of steel factories in the region.
The use of the Zambeze River, due to the limitations of the Sena Railway Line, is of particular
importance to the mining companies, but raises problems in terms of environmental concerns.
Technical studies are proceeding to clarify the feasibility of this solution.
Amongst other investments in airports, the modernisation and expansion of Maputo International
Airport is planned and construction of Nacala International Airport (Odebrecht, the Brazilian company
in charge of the project, expects to complete work in 2013) and new airports in Pemba and Tete
proceeds.
CONSTRUCTION AND
INFRASTRUCTURE (II)
In general, road, rail, port and airport transport infrastructure will need to be upgraded to meet the
expansion of the country’s economy. Investment will be particularly necessary where there are
mineral and agricultural resources, in order to maximize the return on investment and the impact on
the business community.
In Mozambique, their is also great scope for investment in housing, given an estimated deficit of 2.5
millions homes, and in water, sanitation, energy and access roads.
In energy, a tender has been launched for the construction of an electricity transmission line between
Tete, in the centre of the country, and the south of Mozambique. This project is budgeted at EUR 2.7
billion and is expected to be completed by 2016.
REN (which holds 7.5% of HCB) and China Grid are seen as potential partners in this project.
Currently, the electricity supplied by HCB – Hidroeléctrica de Cahora Bassa is via South Africa,
increasing operating costs. The planned line will exceed 1 500 km in length and should be complete
Sources: CPI Mozambique, PES 2011, INP, ES Research - Sectoral Research.
ISKO Mozambique
International Premium Unit/ ES Research - Sectoral Research
023
Mozambique
The economy’s sectoral structure (XIV)
in three years time. In addition to connecting the provinces of Tete and Maputo, it will include substations along its length to allow for electricity supply in Gaza, Inhambane, Manica and Sofala
Provinces. In the future, the Mphanda Nkuwa dam will allow for a significant increase in generation
capacity, of approximately 1 500 MW.
It is estimated that Mozambique has 12 500 MW of potential energy capacity, which corresponds to an
average annual generation of 60 000 GWh. Most of the potential is located in the Zambeze River. In
terms of locations already analyzed, the hydro-electric potential of Cahora Bassa, Mphanda Nkuwa,
Boroma and Lupata stand out. Up to the present time, the only potential being exploited is the hydroelectric power station of Cahora Bassa (2 075 MW), up river from Mphanda Nkuwa.
The Mozambican government also plans to involve private investors in the renewable energies sector,
in order to increase the supply of electricity to the population. In May 2011, the government approved
a development strategy for renewable energies for the next fifteen years.
CONSTRUCTION AND
INFRASTRUCTURE (III)
The SADC Infrastructure Development Plan, the Regional Master Plan for Infrastructure, with an
overall budget of approximately USD 500 billion, is expected to be approved in 2012, aiming to
improve transport, telecommunications, electricity generation and distribution, water supply and tourist
facilities in the entire region. The plan is expected to be implemented in three five-year periods,
between 2012 and 2027. This plans aims to respond to the challenge, in terms of infrastructure,
resulting from the recent formation of the Tri-partite Free Trade Area (T-FTA) – including the SADC,
COMESA (Common Market of Eastern and Southern Africa) and EAC (East African Community).
Mphanda Nkuwa
Sources: CPI Mozambique, PES 2011, INP, ES Research - Sectoral Research.
ISKO Mozambique
International Premium Unit/ ES Research - Sectoral Research
024
Mozambique
The economy’s sectoral structure (XV)
Industrial production has increased at an average annual rate in excess of 3% in the last two years
and is expected to grow by 3.6%, in 2012. The sectors with the greatest growth potential are cement,
clothing and also food and beverages, which are expected to grow by around 10%.
Massive investment in the cement sector will treble production capacity by 2013, currently equal to
around 1.3 million tons per annum. Chinese, Indian and South African companies are entering the
market, carrying out investments that may treble cement production in Mozambique, where Cimentos
de Moçambique (Cimpor) has had a dominant position. The coming online of Cimentos da Matola’s
(Cimpor) new mill during the second half of 2011 has already led to an increase in production capacity
in the sector.
INDUSTRY (I)
The food and beverages industry continues to grow sharply, in particular in the production of
vegetable oils, cereals, pastry production, animal food and beverages. Sumol+Compal has
announced the investment of EUR 8 million in a factory in Mozambique, which has already been
approved by the Mozambican authorities. This is the first investment by this group outside of Portugal
and may have multiplying effects on local agriculture.
The Swiss multinational, Nestlé, announced the construction of a food factory in Sofala Province, in
the municipality of Dondo (30 Km from the city of Beira). This is a EUR 21 million investment which
will supply, not just the local market but also, other SADC countries and should come into operation
before the end of 2012.
The base metals industry is an important export sector in Mozambique – currently, the weight of large
projects is around 75%. The outlook is for stable production levels. This sector includes the largest
company operating in Mozambique, Mozal (aluminium smelting) and a new company, Capital Star
Steel, in the iron and steel sub-sector, which has been set up in the Beluluane (Maputo) Free
Enterpise Zone.
Sources: CPI Mozambique, PES 2011, INP, ES Research - Sectoral Research.
ISKO Mozambique
International Premium Unit/ ES Research - Sectoral Research
25
Mozambique
The economy’s sectoral structure (XVI)
The Nacala Special Economic Zone and the Beluluane (Maputo) Free Enterprise Zone are free trade
zones where companies benefit from special tax exemptions (income, VAT, import tariffs). In May 2012,
the formation of a third Special Economic Zone, at Manga-Mungassa, in Sofala Province, was
announced.
These zones enjoy preferential tax regimes and non-tax incentives approved by law with a view to
promoting and stimulating the development of the country, including exemption from import tariffs, Value
Added Tax (VAT) on the import of equipment and materials destined for the activity licensed in the
zones.
Nacala Special Economic Zone
In the Maputo Corridor, only 75 km
from Ressano Grarcia, on the border
between Mozambique and the
Republic of South Africa. The N4,
which connects Maputo with the
economic heart of South Africa,
Witbank, Johannesburg and Pretoria,
serves Beluluane.
INDUSTRY (II)
Located at the terminus of the transport
axis, known as the Nacala
Development Corridor, comprising the
road which links the provincial capital
(Nampula) with the countries in the
interior, in particular Malawi and
Zambia, an economic and social
developent axis.
Within the scope of its responsibilities and competencies, GAZEDA – Gabinete das Zonas Económicas
de Desenvolvimento Acelerado, can guarantee access to these incentives. GAZEDA is a Mozambique
state entity, with administrative autonomy, under the auspices of the ministry which supervises Planning
and Development. GAZEDA is responsible for promoting and coordinating all initiatives relating to the
creation, development and management of the Special Economic Zones, including Free Enterprise
Zones.
Sources: GAZEDA, PES 2011, INP, ES Research - Sectoral Research.
ISKO Mozambique
International Premium Unit/ ES Research - Sectoral Research
26
Mozambique
The economy’s sectoral structure (XVII)
Although it still has a tiny weight in the country’s GDP, equal to about 2% (5% if we include indirect
impacts), the tourism sector continues to recover ground, both in terms of attracting investments to
increase accommodation capacity and the quality of the service offering and in terms of improvement in
telecommunications and transport infrastructure. According to WTTC – World Travel and Tourism Council
forecasts, the sector should grow at an average annual rate of 6% over the next ten years. The majority of
tourists who travel to Mozambique are from South Africa. In 2010, 51% of tourists were from the
neighbouring country. Malawi, Zimbabwe, Swaziland, Portugal, Germany, the United Kingdom and the
United States are other key markets for Mozambique’s tourism sector. According to the Direcção Nacional
de Turismo, the number of foreign tourists visiting Mozambique in 2011 increased by 11%, from 1.8
million, in 2010, to around 2 million, in 2011.
TOURISM (I)
In July 2011, the government designated four Tourism Interest Zones, areas which have natural and
cultural features appropriate for tourism development: Pemba and Pemba Bay (Cabo Delgado Province),
parts of the districts of Lago and Lichinga (Niassa Province), the municipality of the Island of Mozambique
and parts of the district of Mossuril – Matibane and Cruss and Jamali Islands (Nampula Province) and Inhassoro (Inhambane Province).
Through the implementation of projects in specific
Pemba and East
localities, Mozambique plans to transform these provinces
Lago
Coast to Murrébué
into important centres for development of high quality
Pemba Bay
Lichinga
tourism.
The Arco-Norte project, funded by the North-American
Mossuril
development agency, USAID, has been providing technical
assistance to tourism sector entities in the northern
provinces of Nampula, Niassa and Cabo Delgado.
Island of
Likewise, the so-called Âncora projects, underway in these
Mozambique
areas, are stimulating growth and investment in the tourism
sector in Mozambique, by implementing projects in
Inhassoro
Sources: Inatur, PES 2012, WTTC, ES Research - Sectoral Research.
ISKO Mozambique
International Premium Unit/ ES Research - Sectoral Research
27
Mozambique
TOURISM (II)
The economy’s sectoral structure (XVIII)
specific locations, with the objective of turning these provinces into important centres for the
development of high quality tourism. The implementation of plans for these priority zones, for
investment in tourism and the promotion of construction of basic infrastructure in these areas are
included in the PES 2012. Investment in professional training and in the construction of new hotels is
planned within the scope of the Kapulana project promoted by Inatur – Instituto Nacional do Turismo,
which is responsible for promoting tourism development, classifying tourist establishments, developing
tourism interest zones, studies and development programs and promoting tourism activities. The project
consists of the phased construction of medium and high standard hotels, at reasonable costs, to be
managed by the local business community, in at least 56 districts in Mozambique, in accordance with
regional distribution criteria and the funding available to the institution.
Among the key objectives defined in the PES 2012 for the tourism sector are the continuation of the
rehabilitation of Conservation Areas and the protection of biodiversity, carrying out promotion initiatives
to position Mozambique as a world-class tourism destination and development of a tourism
management information system.
The niche markets of strategic interest for Mozambique, according to the Strategic Plan for the
Development of Tourism in Mozambique (2004-2013) are as follows: i) Deep sea fishing and diving: ii)
Hunting, bird watching and ecotourism; iii) Cruise ships; iv) Luxury (tropical islands); v) Culture. The
nature of tourism in the South emphasises regional and domestic tourism, coastal tourism and nautical
sports; the Central region is better geared as a ecotourism and adventure tourism destination, mainly
for niche international markets; the North will tend to be developed exclusively as a beach and
international ecotourism destination with a signficant cultural component.
The Portuguese groups Visabeira (which controls Turvisa, the largest company in the tourism sector in
Mozambique with five hotels in operation and three planned) and Pestana already operate several hotel
units in Mozambique.
The main airline serving Mozambique’s airports are, in addition to Linhas Aéreas Moçambicanas, South
African Airways, TAP – Air Portugal, Kenya Airways, Ethiopian Airlines and Airlink.
Sources: Inatur, PES 2012, KPMG, ES Research - Sectoral Research.
ISKO Mozambique
International Premium Unit/ ES Research - Sectoral Research
28
The Country's Economic Context
Industry Structure
International Trade, Bilateral Trade with Portugal and Opportunities
BES Group’s Internationalisation Support: International Premium Unit
BES Group's International Offering
Contacts
ISKO Mozambique
International Premium Unit/ ES Research - Sectoral Research
Mozambique
International Trade – Partners
Mozambique’s imports by country, 2011
Rank
Country
Imports
Share
(EUR millions)
(%)
Mozambique’s exports by country, 2011
Rank
Country
Imports
Share
(EUR millions)
(%)
1
South Africa
1 532.6
33.6
1
The Netherlands
1007.0
38.9
2
The Netherlands
485.6
10.7
2
South Africa
419.4
16.2
3
UAE
288.1
6.4
3
United Kingdom
142.7
5.5
4
China
268.5
5.9
4
China
120.4
4.7
5
India
215.8
4.8
5
Iran
109.0
4.2
6
USA
210.0
4.6
6
Malaysia
100.4
3.9
7
Portugal
162.0
3.6
7
Zimbabwe
91.4
3.5
8
United Kingdom
160.0
3.5
8
Switzerland
71.7
2.8
9
Japan
133.2
2.9
9
India
62.6
2.4
10
Kuwait
121.5
2.7
10
Spain
59.9
2.3
…
…
…
…
15
Portugal
30.7
1.2
Source: UNComtrade.
ISKO Mozambique
International Premium Unit/ ES Research - Sectoral Research
30
Mozambique
International Trade – Goods Imports and Exports
(World)
Mozambique’s top 10 exports, 2011
Mozambique’s top 10 imports, 2011
2011
(EUR Million)
Share
(%)
CAGR06-11
(%)
7604 - Bars, Rods And Profiles, Of Aluminium, N.E.S.
968.7
37.4
1 900.4
2716 -Electrical Energy
213.5
8.2
10.8
30.3
7601 - Unwrought Aluminium
198.3
7.7
-27.7
4.3
17.0
2711 - Petroleum Gas And Other Gaseous Hydrocarbons
134.1
5.2
11.2
147.4
3.3
69.8
2401 - Unmanufactured Tobacco; Tobacco Refuse
128.1
5.0
10.1
8431 - Parts Suitable For Use Solely Or Principally With
The Machinery Of Heading 8425 To 8430, N.E.S.
112.7
2.5
75.6
803 - Bananas, Incl. Plantains, Fresh Or Dried
121.2
4.7
151.7
1001 - Wheat And Meslin
100.6
2.2
16.1
4407 - Wood Sawn Or Chipped Lengthwise, Sliced Or
Peeled, Whether Or Not Planed, Sanded Or End-Jointed
89.9
3.5
72.2
1006 - Rice
97.2
2.1
8.1
2614 - Titanium Ores And Concentrates
87.6
3.4
n.a.
7308 - Structures And Parts Of Structures "E.G., Bridges
And Bridge-Sections, Lock-Gates, Towers, Lattice Masts,
Roofs, Roofing Frameworks, Doors And Windows
93.2
2.1
36.5
1701 - Cane Or Beet Sugar And Chemically Pure
Sucrose, In Solid Form
62.9
2.4
20.4
8703 - Motor Cars And Other Motor Vehicles Principally
Designed For The Transport Of Persons
89.6
2.0
17.3
801 - Coconuts, Brazil Nuts And Cashew Nuts, Fresh Or
Dried, Whether Or Not Shelled Or Peeled
59.9
2.3
17.7
2011
(EUR Million)
Share
(%)
CAGR06-11
(%)
2710 - Petroleum Oils And Oils Obtained From
Bituminous Minerals (Excl. Crude)
788.2
17.4
23.8
7601 - Unwrought Aluminium
432.0
9.5
1 254.7
2716 -Electrical Energy
225.6
5.0
8704 - Motor Vehicles For The Transport Of Goods, Incl.
Chassis With Engine And Cab
195.6
8429 - Self-Propelled Bulldozers, Angledozers, Graders,
Levellers, Scrapers, Mechanical Shovels, Excavators,
Shovel Loaders, Tamping Machines And Roadrollers
Products (H.S. 4)
Products (H.S. 4)
Source: UNComtrade.
ISKO Mozambique
International Premium Unit/ ES Research - Sectoral Research
31
Mozambique
International Trade – Bilateral relations with
Portugal (I)
Portugal’s trade balance with Mozambique, 2006, 2010 and 2011
(EUR millions)
Compound Annual Growth Rate (CAGR)
CAGR06-11 of exports = 22.8%
CAGR06-11 of imports = 7.8%
Surplus balance
EUR 223 million
Exports
305
86
213
109
2006
82
61
56
2010
Exports of goods and services
In 2011,
2 036 companies exported
goods to Mozambique
2011
218
Services
(28%)
Imports
Goods
(72%)
874 Services
(45%)
37
45
Goods
(55%)
2011
+34%
In 2010,
1 518 companies exported
goods to Mozambique
Imports of goods and services
Sources: INE, Banco de Portugal.
ISKO Mozambique
International Premium Unit/ ES Research - Sectoral Research
32
Mozambique
International Trade – Bilateral relations with
Portugal (goods) (II)
Top 10 Portuguese imports from Mozambique, 2011
Top 10 Portuguese exports to Mozambique, 2011
2011
(EUR Million)
Share
(%)
CAGR06-11
(%)
2011
(EUR Million)
Share
(%)
CAGR06-11
(%)
20.7
49.3
41.6
8429 - Self-Propelled Bulldozers, Angledozers, Graders,
Levellers, Scrapers, Mechanical Shovels, Excavators,
Shovel Loaders, Tamping Machines And Roadrollers
10.3
4.7
67.0
0306 - Crustaceans, Whether In Shell Or Not, Live, Fresh,
Chilled, Frozen, Dried, Salted Or In Brine, Even Smoked,
Incl. Crustaceans In Shell Cooked By Steaming Or By
9.2
21.8
-12.4
8504 - Electrical Transformers, Static Converters, E.G.
Rectifiers, And Inductors; Parts Thereof
9.2
4.2
36.8
2401 - Unmanufactured Tobacco; Tobacco Refuse
8.9
21.3
46.3
8544 - Insulated "Incl. Enamelled Or Anodised" Wire,
Cable "Incl. Coaxial Cable" And Other Insulated Electric
Conductors; Optical Fibre Cables
9.2
4.2
23.0
5201 - Cotton, Neither Carded Nor Combed
2.2
5.3
-12.2
8901 - Cruise Ships, Excursion Boats, Ferry-Boats, Cargo
Ships, Barges And Similar Vessels For The Transport Of
Persons Or Goods
8.4
3.8
---
0302 - Fish, Fresh Or Chilled (Excl. Fish Fillets And Other
Fish Meat Of Heading 0304)
0.2
0.4
-23.6
4901 - Printed Books, Brochures And Similar Printed
Matter, Whether Or Not In Single Sheets
8.1
3.7
0.6
8544 - Insulated "Incl. Enamelled Or Anodised" Wire,
Cable "Incl. Coaxial Cable" And Other Insulated Electric
Conductors; Optical Fibre Cables
0.2
0.4
353.7
7308 - Structures And Parts Of Structures "E.G., Bridges
And Bridge-Sections, Lock-Gates, Towers, Lattice Masts,
Roofs, Roofing Frameworks, Doors And Windows
7.7
3.5
25.8
1202 - Groundnuts, Whether Or Not Shelled Or Broken
(Excl. Roasted Or Otherwise Cooked)
0.1
0.2
---
9403 - Furniture And Parts Thereof, N.E.S. (Excl. Seats
And Medical, Surgical, Dental Or Veterinary Furniture)
5.7
2.6
40.4
0713 - Dried Leguminous Vegetables, Shelled, Whether
Or Not Skinned Or Split
0.1
0.2
---
8517 - Telephone Sets, Incl. Telephones For Cellular
Networks Or For Other Wireless Networks; Other
Apparatus For The Transmission Or Reception Of Voice,
5.1
2.4
27.5
7108 - Gold, Incl. Gold Plated With Platinum, Unwrought
Or Not Further Worked Than Semi-Manufactured Or In
Powder Form
0.1
0.2
13.0
2204 - Wine Of Fresh Grapes, Incl. Fortified Wines; Grape
Must
5.1
2.3
7.2
5308 - Yarn Of Vegetable Textile Fibres; Paper Yarn
0.0
0.1
---
8537 - Boards, Panels, Consoles, Desks, Cabinets And
Other Bases
4.9
2.2
23.1
Products (H.S. 4)
1701 - Cane Or Beet Sugar And Chemically Pure
Sucrose, In Solid Form
Products (H.S. 4)
Sources: INE, Banco de Portugal.
ISKO Mozambique
International Premium Unit/ ES Research - Sectoral Research
33
Mozambique
Goods export opportunities (I)
Set of products (goods) identified as needs (imports) of Mozambique for which Portugal has
production and export capacity, thus representing opportunities to increase the volume of
Portuguese exports to Mozambique.
Top 10 export opportunities to Mozambique, 2010
8507 - Electric accumulators, incl. separators therefor, whether or not square or rectangular; parts
thereof (excl. spent and those of unhardened rubber or textiles)
2204 - Wine of fresh grapes, incl. fortified wines; grape must
excluding those included in heading 2009
8207 - Tools, interchangeable, for hand tools, whether or not
3102 - Mineral or chemical nitrogenous fertilisers
(excl. those in pellet or similar forms, or in packages
with a gross weight of <= 10 kg)
power-operated, or for machine tools
4014 - Hygienic or pharmaceutical articles, incl. teats, of
vulcanised rubber (excl. hard rubber), with or without
fittings of hard rubber
7310 - Tanks, casks, drums, cans, boxes and similar containers, of
iron or steel, for any material "other than compressed or liquefied
gas", of a capacity of <= 300 l, not fitted with mechanical or
thermal equipment
8428 - Lifting, handling, loading or unloading
machinery, e.g. lifts, escalators, conveyors,
teleferics
7010 - Carboys, bottles, flasks, jars, pots, phials, ampoules and other
containers, of glass, of a kind used for the conveyance or packing of goods,
preserving jars, stoppers, lids and other closures, of glass
6309 - Worn clothing and clothing accessories, blankets
and travelling rugs, household linen and articles for interior
furnishing, of all types of textile materials, incl. all types of
footwear and headgear
8708 - Parts and accessories for tractors,
motor vehicles for the transport of
persons, motor cars, motor vehicles for the
transport of goods
Sources: UNComtrade, OECD, ES Research - Sectoral Research.
ISKO Mozambique
International Premium Unit/ ES Research - Sectoral Research
34
Mozambique
Goods export opportunities (II)
Top 10 export opportunities to Mozambique
(Amount and rank of Mozambique’s world imports)
2006
2010
(EUR Millions)
(EUR Millions)
CAGR06-10
(%)
Rank 2010
Share
(%)
3102 - Mineral or Chemical Nitrogenous Fertilisers
10.2
28.1
28.9
12
1.0
8428 - Lifting, Handling, Loading Or Unloading Machinery, E.G. Lifts, Escalators, Conveyors, Teleferics
2.9
21.4
64.7
17
0.8
8708 - Parts And Accessories For Tractors, Motor Vehicles For The Transport Of Ten Or More Persons,
Motor Cars And Other Motor Vehicles Principally Designed For The Transport Of Persons
10.5
15.3
9.8
23
0.6
6309 - Worn Clothing And Clothing Accessories, Blankets And Travelling Rugs, Household Linen And
Articles For Interior Furnishing, Of All Types Of Textile Materials
10.6
15.0
9.0
25
0.6
7010 - Carboys, Bottles, Flasks, Jars, Pots, Phials, Ampoules And Other Containers, Of Glass,
4.2
9.1
21.5
41
0.3
7310 - Tanks, Casks, Drums, Cans, Boxes And Similar Containers, Of Iron Or Steel
6.2
8.9
9.4
44
0.3
4014 - Hygienic Or Pharmaceutical Articles, Incl. Teats, Of Vulcanised Rubber (Excl. Hard Rubber)
1.5
8.9
55.7
45
0.3
8207 - Tools, Interchangeable, For Hand Tools, Whether Or Not Power-Operated, Or For Machine Tools
0.6
8.2
92.8
49
0.3
2204 - Wine Of Fresh Grapes, Incl. Fortified Wines; Grape Must
2.5
7.2
30.0
57
0.3
8507 - Electric Accumulators, Incl. Separators Therefor, Whether Or Not Square Or Rectangular; Parts
Thereof
4.2
6.1
9.8
66
0.2
Products (H.S. 4)
Sources: UNComtrade, OECD, ES Research - Sectoral Research.
ISKO Mozambique
International Premium Unit/ ES Research - Sectoral Research
35
Mozambique
Goods export opportunities (III)
Cloud of Export Opportunities to Mozambique
Base and processed metals
Agricultural produce and foodstuffs
Machines and apparatus
7324 - Sanitary ware, and parts thereof, of iron or
steel
1209 - Seeds, fruits and spores, for sowing
8463 - Machine tools for working metal, sintered metal
carbides or cermets
8205 - Hand tools, incl. glaziers' diamonds, of base
metal, N.E.S.; blowlamps and the like; vices, clamps
and the like
8301 - Padlocks and locks "key, combination or
electrically operated", of base metal; clasps and
frames with clasps, incorporating locks, of base metal;
keys for any of the foregoing articles, of base metal
8303 - Armoured or reinforced safes, strong-boxes
and doors and safe deposit lockers for strong-rooms,
cash or deed boxes and the like, of base metal
Plastics
1905 - Bread, pastry, cakes, biscuits and other bakers'
wares, whether or not containing cocoa; communion
wafers, empty cachets of a kind suitable for
pharmaceutical use, sealing wafers, rice paper
2009 - Fruit juices, incl. grape must, and vegetable
juices, unfermented, not containing added spirit
2104 - Soups and broths and preparations therefor;
food preparations consisting of finely homogenised
mixtures of two or more basic ingredients
8470 - Calculating machines and pocket-size data
recording, reproducing and displaying machines;
accounting machines, postage-franking machines,
ticket-issuing machines; cash registers
8530 - Electrical signalling, safety or traffic control
equipment for railways, tramways, roads, inland
waterways, parking facilities, port installations or
airfields
8547 - Insulating fittings
Other sectors
3917 - Tubes, pipes and hoses, and fittings therefor,
e.g. joints, elbows, flanges, of plastics
3923 - Articles for the conveyance or packaging of
goods, of plastics; stoppers, lids, caps and other
closures, of plastics
3924 - Tableware, kitchenware, other household
articles and toilet articles, of plastics
3209 - Paints and varnishes, incl. enamels and
lacquers, based on synthetic polymers or chemically
modified natural polymers, dispersed or dissolved in
an aqueous medium
4819 - Cartons, boxes, cases, bags and other packing
containers, of paper, paperboard, cellulose wadding or
webs of cellulose fibres, N.E.S.; box files, letter trays,
and similar articles, of paperboard of a kind used in
offices, shops or the like
4821 - Paper or paperboard labels of all kinds,
whether or not printed
ISKO Mozambique
International Premium Unit/ ES Research - Sectoral Research
6910 - Ceramic sinks, washbasins, washbasin
pedestals, baths, bidets, water closet pans, flushing
cisterns, urinals and similar sanitary fixtures
6908 - Glazed ceramic flags and paving, hearth or wall
tiles; glazed ceramic mosaic cubes and the like
6401 - Waterproof footwear with outer soles and
uppers of rubber or of plastics
9402 - Medical, surgical, dental or veterinary furniture;
barbers' chairs and similar chairs
36
The Country's Economic Context
Industry Structure
International Trade, Bilateral Trade with Portugal and Opportunities
BES Group’s Internationalisation Support: International Premium Unit
BES Group's International Offering
Contacts
ISKO Mozambique
International Premium Unit/ ES Research - Sectoral Research
Mozambique
BES Group's Internationalisation Support (I)
BES is the Portuguese bank with the largest international presence and the best international offering: for the 5th
consecutive year it won the award for “The Best Trade Finance Bank”.
Subsidiaries and Associates: BES
Angola, BES Oriente (Macao), BES Cape
Verde, ESIB (Brazil, Mexico, Poland, USA,
United Kingdom, Angola, Spain), Moza
Banco (Mozambique), BES Vénétie
(France), ES Bank (USA), ES Plc (Ireland),
Aman Bank (Libya), IJAR Leasing (Algeria),
Dublin
London
New York
Madrid
Lisbon
Toronto
Newark
Miami
Mexico City
Nassau
Cape Verde
Cayman
Islands
Algiers
Warsaw
Paris
Cologne
Zurich
Lausanne
Geneva
Execution Noble (China and India), Banque
Extérieur d’Algérie (Algeria), Banque
Marocaine du Commerce Extérieur
Shanghai
Tripoli
Macao
Caracas
Mumbai
Hong Kong
(Morocco), Banco delle Tre Venezie (Italy).
International Branches: Madrid, New York,
London, Luxembourg, Nassau, Cayman
Islands, Caracas.
Luanda
Off-shore branch: Madeira.
Maputo
Representative and Remittances Offices:
Rio de Janeiro
São Paulo
Johannesburg
Toronto, Mexico City, Caracas, Rio de
Janeiro, São Paulo, Lausanne, Geneva,
Zurich, London, Cologne, Johannesburg,
Shanghai, Newark.
ISKO Mozambique
International Premium Unit/ ES Research - Sectoral Research
38
Mozambique
BES Group’s Internationalisation Support (II)
Moza Banco is commited to being the Bank of choice for Portuguese companies doing business with and in Mozambique
▪
▪
▪
▪
Bank in operation since June 2008.
# (#)
N. of Business Units Dec 2012 (36)
(N. of Bank Branches) Dec 2012 (23)
Activity focused on the corporate, private
and affluent segments.
Current branch network equal to 10 (20
Business Units). Retail network expansion
to all provinces under way, expected to rise
to a total of 23 Branches comprising 36
Business Units (22 Branches, 10 Corporate
Centres and 4 Private Banking Centres).
2(1)
0(0)
Niassa
Nampula
4(2)
Tete
Zambézia
Wide range of Corporate Banking products,
including:
Sofala
Manica
Letters of Credit, Import/export
collection, Bank Guarantees
treasury management
▪ Transactional banking services in the
1(1)
3(1)
Inhambane
1(1)
Gaza
1(1)
Current network
Coal mines
Water dam
domestic and international markets
17(13)
ISKO Mozambique
International Premium Unit/ ES Research - Sectoral Research
5(2)
2(1)
▪ Trade Finance: Import and Export
▪ Funding for investment projects and
Cabo
Delgado
Maputo
Oil and gas
Ports and
railways
39
Mozambique
BES Group's Support to Internationalisation (III)
Banco Espírito Santo, through the team of international bankers of its International Premium Unit,
actively supports the Portuguese business community:
Bankers with deep market expertise in charge of the various geographical
areas:
INTERNATIONAL BANKERS
Eastern Europe and Asia
Mature markets + China
Maghreb and Turkey
Middle East
Africa
Latin America
Search for credit solutions for the clients from the vast network of
Correspondent Banks;
CORRESPONDENT BANKERS
Search for business opportunities from the corporate banking
areas of the Correspondent Banks.
ISKO Mozambique
International Premium Unit/ ES Research - Sectoral Research
40
The Country's Economic Context
Industry Structure
International Trade, Bilateral Trade with Portugal and Opportunities
BES Group’s Internationalisation Support: International Premium Unit
BES Group's International Offering
Contacts
ISKO Mozambique
International Premium Unit/ ES Research - Sectoral Research
Mozambique
BES Group's International Offering
A Global and Innovative Offering to Support the Internationalisation of the Portuguese Companies
ES Research:
Market Data
Investment Banking
Multipessoal Group
Macroeconomic surveys
Project Finance
Recruitment of specialists (M Search)
Sectoral surveys
M&A
Market research
Corporate Finance
Outsourcing, temporary work, training and
consulting services with presence in Angola
and Spain
Commercial Banking
Business Development
Support to Account Opening / KYC
Support to treasury monitoring /
centralisation
Venture Capital
Support as partner in internationalisation
projects
Tranquilidade
International Transport Insurance
ES Ventures
FX Risk Hedging
Support to Exports/Imports; Trade Finance;
Import Financing
Bank Guarantees / Stand By Letters of
Credit
International Factoring – agreement to use
Eurofactor’s European network
Support to business partners’ search
ISKO Mozambique
International Premium Unit/ ES Research - Sectoral Research
ES Capital
2bCapital
Espírito Santo Rockefeller Global Energy
Fund
42
Contexto Económico do País
Estrutura Sectorial
Comércio Internacional, Bilateral com Portugal e Oportunidades
Apoios à Internacionalização: Unidade Internacional Premium
Oferta Internacional do GBES
Contactos
ISKO Mozambique
International Premium Unit/ ES Research - Sectoral Research
Disclaimer
This document was prepared by Banco Espírito Santo and/or any of its subsidiaries (“BES”) and is intended solely for release by BES to qualified investors. Its use is restricted to qualified investors, and their
representatives.
All information contained in this document was compiled in good faith by BES, using sources of public information considered reliable, although its accuracy cannot be guaranteed. Accordingly, with the exception of
information about BES makes no representation as to the accuracy or completeness of such information.
The opinions expressed in this document reflect BES’s point of view as of the date of its release and may be subject to change without prior notice. BES does not assure the update of this document.
This document is not a research report, neither represents any kind of advisory, nor is an offer to buy or sell or intends to solicit an order to buy or sell. The prices of any instruments described in this document are
indicative prices only and do not constitute firm bids or offers. BES may choose to make a market for any instruments referred in this document, but are not obliged to do so. Any such market-making activities may
be discontinued at any time without notice. The prices of any financial instruments described in this document are indicative prices only and do not constitute firm bids or offers.
BES may trade for their own account or of their clients any instruments that may be referred to in this document, as well as they may have any business relationship with the entities referred on it. BES may act as
market-makers of any instruments referred to in this document, although they are not obliged to do so and, if they do it, they may terminate that activity at any moment. BES may act as placement agent, advisor,
lender or in other capacities in with respect to financial instruments or issuers referenced in this document.
BES may trade for its own account and may also engage in securities transactions in a manner inconsistent with this document and with respect to financial instruments covered by this document.
BES has no obligation to update, modify or amend this document or to otherwise notify a reader thereof in the event that any matter stated herein, or any opinion, projection, forecast or estimate set forth herein,
changes or subsequently becomes inaccurate. Prices and availability of financial instruments are also subject to change without notice. This document is provided for informational purposes only. BES will not
accept any responsibility for any loss resulting from the use of the information or opinions referred in this document.
The financial instruments discussed in this document may not be suitable for all investors and investors must make their own investment decisions using their own independent advisors as they believe necessary
and based upon their specific financial situations and investment objectives. If a financial instrument is denominated in a currency other than an investor’s currency, a change in exchange rates may adversely affect
the price or value of, or the income derived from the financial instrument, and such investor effectively assumes currency risk. In addition, income from an investment may fluctuate and the price or value of financial
instruments described in this document, either directly or indirectly, may rise or fall. Furthermore, past performance is not necessarily indicative of future results.
The financial instruments discussed herein may be subject to restrictions with regard to certain persons or in certain countries under national regulations applicable to said persons or in said countries. It is each
investor’s responsibility to ensure that it is authorized to invest in those financial instruments.
This document is confidential and addressed to a restricted number of entities. If you are not an addressee of this document, you should immediately destroy it. The dissemination or copy, in total or in part, of this
document is not allowed.
Additional information is available upon request.
Additional disclosures for US persons
The enclosed document does not constitute any kind of research report or any kind of offer to sell any of the financial instruments discussed herein, nor is it soliciting an offer to buy such financial instruments. The
financial instruments issued by Companies that may be discussed herein may be subject to restrictions with regard to certain persons or in certain countries under national regulations applicable to said persons or in
said countries. It is each investor’s responsibility to ensure that it is authorized to invest in those securities.
The financial instruments discussed in this material may not be suitable for all investors. Investors should make their own assessment of the risks from a legal, tax and accounting perspective prior to investing in
such products. Past performance is no guarantee to future performance.
This document is being distributed to, and is intended solely for the use of, institutional investors. Notwithstanding the generality of the preceding sentence, this document is intended solely for the use of the
institutional investor to which it has been sent by BES and such recipient’s agents, employees, advisors and representatives. If you have received this document in error, you are urged to destroy it or return it
immediately to BES.
The prices of any financial instruments described in this document are indicative prices only and do not constitute firm bids or offers. BES or its affiliates may choose to make a market for any such financial
instruments, but neither BES nor any of its affiliates has an obligation to do so. Any such market-making activities may be discontinued at any time without notice. Certain information contained in this document has
been derived from public sources that BES deems to be reliable. Neither BES nor any of its affiliates, however, have independently verified such publicly available information nor do they take responsibility for its
accuracy or completeness.
Any U.S. person receiving this document and wishing to effect transactions in any financial instruments discussed herein should do so, if applicable, through BES and not through any non-U.S. affiliate of BES.
44
International Premium Unit
Head
Ricardo Bastos Salgado
[email protected]
International Business
Manager
Marta Mariz
[email protected]
Managers
Miguel Frasquilho
[email protected]
Francisco Mendes Palma
[email protected]
Head Sectoral Strategist
International Premium Unit – Africa
International Business
Head
Bruno Pereira
[email protected]
Joana Reis
[email protected]
Financial Institutions Manager Bernardo Sotto Mayor [email protected]
Sectoral Research
Susana Barros
[email protected]
Luís Ribeiro Rosa
[email protected]
Paulo Talhão Paulino
[email protected]
Conceição Leitão
[email protected]
João Pereira Miguel
[email protected]
Patrícia Agostinho
[email protected]
Salvador Salazar Leite
[email protected]
Miguel Bidarra
[email protected]
José Manuel Botelho
[email protected]
45