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RA Frank Aletter, LL.M.
Juni 2013
Maputo Mozambique
Durban, 27.9.2016
OVERVIEW: MOZAMBIQUE
BOLETIM MOÇAMBIQUE
Quarta, 31 de Agosto
25 notícias • 13041 caracteres
MOÇAMBIQUE
Crise é o momento certo
para empresas portuguesas
apostarem em Moçambique
– AICEP
President of AICEP, Miguel Frasquilho:
High risk – high return ???
Overview
Capital: Maputo
Official Language: Portuguese
10 Provinces, Area: 744.9 mil km2
Currency: Metical (MZN)
Governance: Unitary Republique
Religion: Mostly Christian
(Catholics 24%), (Muslims18%)
Ruling Party: FRELIMO,
President Filipe Nyussi
International Relations
-SADC – South African Development Community
-CPLP – Community of Portuguese Language
Countries
-Commonwealth of Nations
-EPA – Economic Partnership Agreements with EU
-AGOA – African Growth and Opportunity Act. with
USA
Item in Item in Item in
Population Mill. 27
HDI rank of
189
rank 180
GDP p.c.
(PPP)
US$
Ca.
700
Population
growth
%
p.a.
2.5
Gross
school
enrolment
%
54.8 Gini Index 0-1 0.45
Life
expectancy
year
s
50
Aid per
capita
US
D
Ca. 75
Credit
Ratings
category CCC
Urban
population
% 31
Poverty
(less than 2
USD a day)
% 81.8
Corruption
perception
Index of 173
countries
rank 119
HDI 0-1 0.393
Doing
Business
rank of 189
rank 134
Socio-Economic Indicators
Macro Data
Growth in % Current growth in % p.a.
2015 ca. 5,5%
2016 ca. 4%
2017 picking up again…….???
Trade balance
negative (2-4 Bio. USD)
Inflation
2-5%, now more then 18% p.a.
Exchange Rate
Stable for long period
2016 strong devaluation (40%)
1Rand - 5 MZN
FOREX reserves
down (1,5 Month Imports)
FDI
Down after boom
Approved 1,2 Mrd. USD in 2015,
Recovery expected 2017
Government debt more then 90% BNP.
Quellen: EIU 2016
Economy
Current:
Services: 44% of GDP
Agriculture: 32% of GDP
Industry: 24% of GDP
Few Megaprojects
Fragmented economy
Growing informal sector
Few advanced national SMEs
Future:
Strategy (SDI) based in clusters in 3 main regions:
Beira, Maputo and Nacala Development
Corridors, Network effects
Strategies:
Many, lack of implementation
Scenario: GDP p.C 4,000 USD by 2030
Approved Investments by sectors
2010-2015
Relation to Germany
Important Exports to
Germany:
Aluminium, Sugar,
Cashew, Tabacco
Important Exports to
Mozambique:
Machines, cars, Chemicals,
Wheat
Parts of Exports to MOZ via
South Africa
Nr. 4 within SADC, after South Africa, Angola and Namibia
Bilateral Volume 2015:
Ca. 270 Mio. EUR. 2015 plus 25%
Imports ca. 150 Mio. EUR
Exports ca. 120 Mio. EUR
German Aid: 50 Mil. Euro p/a.
Close links to GDR during 1970er and 80er :
22.000 Mozambicans in Germany, today ca. 9.000
Quelle: Destatis
2016
German presence in Mozambique
 Bilateral Investment Guarantee (2007)
 No DTT
 FDI in Mosambik: 16 Mio. Euro (2013) GTAI
 Hermes-Euler
Main Projects
 AMG Mining (Graphit
Kropfmühl):
 Helm AG ( ProMann
and Koch
Engineering):
MoPetCo-Project –
Methanol and fertilizer
gas -based
 Slaughterhouse
(Renner)
• Oekohouse
other Projects
 Gauff Engineering: Maputo
und Katembe Bridge with
China
 Siemens
 Logistics
 Modell Lodge Oeko
 Integrated Farm Project
Manhica
Relation to South Africa
Important Exports to MOZ:
Services, Machinery,
Vehicles, Mineral fuels,
electronic equipment, iron,
steel, Plastics, beverages,
paper, dairy products,
furniture, food,……
Important Exports to South
Africa:
Mineral fuels, beverages,
fruit, nuts, residues,
aluminium,…..
Nr. 1 within SADC , worldwide Nr. 2 for Export, Nr. 1 for Import
Bilateral Volume 2015:
Ca. 3 Bio. USD
Imports ca. 0,6 Bio. USD
Exports ca. 2,4 Bio. USD
Double Tax T. yes, Bilateral trade agreement, SADC rules
Comtrade 2016
SWOT Analysis
Strengths
- High GDP growth
- Abundant natural beauty
- Good road connection with Gauteng
- High FDI
- Growing middle class
- Logistical hub for the region
Weaknesses
- Lack of skilled labour
- Portuguese as business language
- Weak protection & enforcement of
contractual rights
- Low level of social & economic
development
- Infrastructure deficits
Opportunities
- Significant coal reserves (20. Bil.
Tonnes)
- Vast natural gas deposit
- Biofuel potential
- Ideal for renewable energies
(climate, land, water, labour)
- Growing tourism industry
- Huge agriculture potential
- Growing middle class
Threats
- Potential political instabilities
- Nationalistic-populistic tendencies
- Chronical trade deficit
- Still aid dependent
- External debt levels are rising
- Challenging business environment
- corruption alarming
source: gtai/Dr Kaufmann
Potentials
Natural Ressources
gas, coal und ca.
600, Tantal, Titan,
Zirkon, Graphite,
Gold, Diamonds,
Rubies.
Agriculture and Fishery
36 Millionen Hectar Land: 40%
used by small holders and 3%
by comercial farming, cash crops
like Tabacco, Sugar, Cotton,
Tea, Cashew, Banana, Seafood
etc.
Tourism
More 2.800 km coast
line, Quirimba,
Bazaruto Islands, Lake
Niassa, Nationalparks
...
Energy Ressources
Hydro, Wind, Solar, Gas, coal, Bio
……………..oil.
Priorities
Strategic value chains
Energy
Oil and Gas
Conclusion:
-- yes, many opportunities
-- yes, it is high risk - high return country
-- you need time and reserves
-- you should work with an active, reliable
national partner, knowing the environment as
business culture is still very different from RSA
-- Portuguese is an advantage
Thank you very much!
Contact
Office Maputo
Address:
Rua António Simbine, (ex- Antonio Bocarro) nº 211
Sommerschield, Maputo
Moçambique
Tel: +258(0)21- 493260
Fax: +258(0)21-493258
Email:
maputo@germanchamber.co.za
Web:
www.germanchamber.co.za

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Mozambique Durban 27 Sept 2016

  • 1. RA Frank Aletter, LL.M. Juni 2013 Maputo Mozambique Durban, 27.9.2016
  • 3. BOLETIM MOÇAMBIQUE Quarta, 31 de Agosto 25 notícias • 13041 caracteres MOÇAMBIQUE Crise é o momento certo para empresas portuguesas apostarem em Moçambique – AICEP President of AICEP, Miguel Frasquilho: High risk – high return ???
  • 4. Overview Capital: Maputo Official Language: Portuguese 10 Provinces, Area: 744.9 mil km2 Currency: Metical (MZN) Governance: Unitary Republique Religion: Mostly Christian (Catholics 24%), (Muslims18%) Ruling Party: FRELIMO, President Filipe Nyussi International Relations -SADC – South African Development Community -CPLP – Community of Portuguese Language Countries -Commonwealth of Nations -EPA – Economic Partnership Agreements with EU -AGOA – African Growth and Opportunity Act. with USA
  • 5.
  • 6. Item in Item in Item in Population Mill. 27 HDI rank of 189 rank 180 GDP p.c. (PPP) US$ Ca. 700 Population growth % p.a. 2.5 Gross school enrolment % 54.8 Gini Index 0-1 0.45 Life expectancy year s 50 Aid per capita US D Ca. 75 Credit Ratings category CCC Urban population % 31 Poverty (less than 2 USD a day) % 81.8 Corruption perception Index of 173 countries rank 119 HDI 0-1 0.393 Doing Business rank of 189 rank 134 Socio-Economic Indicators
  • 7. Macro Data Growth in % Current growth in % p.a. 2015 ca. 5,5% 2016 ca. 4% 2017 picking up again…….??? Trade balance negative (2-4 Bio. USD) Inflation 2-5%, now more then 18% p.a. Exchange Rate Stable for long period 2016 strong devaluation (40%) 1Rand - 5 MZN FOREX reserves down (1,5 Month Imports) FDI Down after boom Approved 1,2 Mrd. USD in 2015, Recovery expected 2017 Government debt more then 90% BNP. Quellen: EIU 2016
  • 8. Economy Current: Services: 44% of GDP Agriculture: 32% of GDP Industry: 24% of GDP Few Megaprojects Fragmented economy Growing informal sector Few advanced national SMEs Future: Strategy (SDI) based in clusters in 3 main regions: Beira, Maputo and Nacala Development Corridors, Network effects Strategies: Many, lack of implementation Scenario: GDP p.C 4,000 USD by 2030
  • 9.
  • 10. Approved Investments by sectors 2010-2015
  • 11.
  • 12.
  • 13. Relation to Germany Important Exports to Germany: Aluminium, Sugar, Cashew, Tabacco Important Exports to Mozambique: Machines, cars, Chemicals, Wheat Parts of Exports to MOZ via South Africa Nr. 4 within SADC, after South Africa, Angola and Namibia Bilateral Volume 2015: Ca. 270 Mio. EUR. 2015 plus 25% Imports ca. 150 Mio. EUR Exports ca. 120 Mio. EUR German Aid: 50 Mil. Euro p/a. Close links to GDR during 1970er and 80er : 22.000 Mozambicans in Germany, today ca. 9.000 Quelle: Destatis 2016
  • 14. German presence in Mozambique  Bilateral Investment Guarantee (2007)  No DTT  FDI in Mosambik: 16 Mio. Euro (2013) GTAI  Hermes-Euler Main Projects  AMG Mining (Graphit Kropfmühl):  Helm AG ( ProMann and Koch Engineering): MoPetCo-Project – Methanol and fertilizer gas -based  Slaughterhouse (Renner) • Oekohouse other Projects  Gauff Engineering: Maputo und Katembe Bridge with China  Siemens  Logistics  Modell Lodge Oeko  Integrated Farm Project Manhica
  • 15. Relation to South Africa Important Exports to MOZ: Services, Machinery, Vehicles, Mineral fuels, electronic equipment, iron, steel, Plastics, beverages, paper, dairy products, furniture, food,…… Important Exports to South Africa: Mineral fuels, beverages, fruit, nuts, residues, aluminium,….. Nr. 1 within SADC , worldwide Nr. 2 for Export, Nr. 1 for Import Bilateral Volume 2015: Ca. 3 Bio. USD Imports ca. 0,6 Bio. USD Exports ca. 2,4 Bio. USD Double Tax T. yes, Bilateral trade agreement, SADC rules Comtrade 2016
  • 16. SWOT Analysis Strengths - High GDP growth - Abundant natural beauty - Good road connection with Gauteng - High FDI - Growing middle class - Logistical hub for the region Weaknesses - Lack of skilled labour - Portuguese as business language - Weak protection & enforcement of contractual rights - Low level of social & economic development - Infrastructure deficits Opportunities - Significant coal reserves (20. Bil. Tonnes) - Vast natural gas deposit - Biofuel potential - Ideal for renewable energies (climate, land, water, labour) - Growing tourism industry - Huge agriculture potential - Growing middle class Threats - Potential political instabilities - Nationalistic-populistic tendencies - Chronical trade deficit - Still aid dependent - External debt levels are rising - Challenging business environment - corruption alarming source: gtai/Dr Kaufmann
  • 17. Potentials Natural Ressources gas, coal und ca. 600, Tantal, Titan, Zirkon, Graphite, Gold, Diamonds, Rubies. Agriculture and Fishery 36 Millionen Hectar Land: 40% used by small holders and 3% by comercial farming, cash crops like Tabacco, Sugar, Cotton, Tea, Cashew, Banana, Seafood etc. Tourism More 2.800 km coast line, Quirimba, Bazaruto Islands, Lake Niassa, Nationalparks ... Energy Ressources Hydro, Wind, Solar, Gas, coal, Bio ……………..oil.
  • 22. Conclusion: -- yes, many opportunities -- yes, it is high risk - high return country -- you need time and reserves -- you should work with an active, reliable national partner, knowing the environment as business culture is still very different from RSA -- Portuguese is an advantage
  • 23. Thank you very much! Contact Office Maputo Address: Rua António Simbine, (ex- Antonio Bocarro) nº 211 Sommerschield, Maputo Moçambique Tel: +258(0)21- 493260 Fax: +258(0)21-493258 Email: maputo@germanchamber.co.za Web: www.germanchamber.co.za