The objective of the trade mission (organised by the AHK Südliches Afrika and VDMA) was to promote bilateral trade and investment between Germany and Mozambique, with a specific focus on the mining industry. The mission created an ideal platform for German companies who would like to export value-added products and services and for companies who are looking for investment opportunities in Mozambique.
The mining industry arguably represents one of Mozambique’s most important industry sectors. A number of high-profile mining projects are currently underway, which are not only boosting the industry itself but also the wider economy through infrastructure development to facilitate exporting the mining output to the rest of the world. The mineral industry of Mozambique plays a significant role in the world's production of aluminium, beryllium, and tantalum. The country is also rich in copper, iron, lead, as well as high-grade bauxite.
Mozambique economy set to bounce back in 2020
Mozambique’s economy is on track for a “strong rebound” in 2020. The real GDP growth for the country is projected to reach 5.5 percent in the year 2020, up from the 2.1 percent that was predicted for 2019. The boost is mainly supported by “post-cyclones reconstruction efforts”, agricultural recovery and the easing of monetary conditions, said IMF Mozambique mission chief, Ricardo Velloso.
In addition to the positive GDP predictions for 2020, Mozambique has sought to become the world’s third-largest exporter of liquefied natural gas (LNG) since vast offshore reserves were found in 2010, resulting in a further boost for the country’s economy. For the following two years, the EIU foresees a strengthening of economic expansion, with average growth for 2021 and 2022 of 6.5% and the gas industry being one of the major drivers of economic growth, notably through investments by oil companies involved in natural gas development in the center and north of the country.
Mozambique: New logistics corridor in the north to ‘revolutionise’ trade and travel
A new logistics railway corridor to be built in central Mozambique plans to revolutionise traveling in the region thanks to the creation of a passenger train. The overland journey between Quelimane, on the Indian coast, to Tete, in the interior, takes more than two days and, if the schedule for implementing the new corridor (railroad and deep-water port) is met, by 2024 the journey time should be reduced to ten hours.
EU approves € 12bln for Mozambique’s private sector
The European Union (EU) has approved an investment package amounting to €12 billion to the private sector in Mozambique to be applied in several areas. The EU’s agreement with Mozambique consist of two main parts, of which one part will focus on the economic issues, while “permitting free access to all types of customs duties on all Mozambican products for the European market, including a liberalisation that is symmetrical in the sense that there are sectors that are protected and supported,” said António Sánchez-Benedito Gaspar, EU ambassador,.
DBSA provides $81.30m for Mozambique’s power network upgrades
Mozambique’s national energy utility, Electricidade De Mocambique (EDM) has received a senior debt loan facility of $81.30 million from the Development Bank of Southern Africa (DBSA) for the rehabilitation and upgrading of energy supply network. EDM has launched several projects aimed at strengthening the transmission grid and improving distribution capacity in Mozambique. “We believe the energy sector offers significant opportunities to provide both social and economic development in Mozambique with an anticipated 284,000 households receiving connectivity and stable power connection”, said Davies Pwele, Head of SADC Coverage division at the DBSA.
Mozambique Liquefied Natural Gas (LNG) Market
Mozambique is officially positioning itself as the world’s next big global energy player with mega gas deals being signed in Mozambique hand over fist. There is a growing expectation that Mozambique will, in the coming decades, compete with Russia to become the world’s fourth-largest LNG producer after the US, Qatar and Australia.
To date, a total of 150-trillion cubic feet (Tcf) of gas, the equivalent to 24 billion barrels of oil, has been discovered, which has led to investment projects valued at $54-billion either being implemented or are awaiting final sanction. Amongst the multiple projects, TOTAL has committed to a final investment decision on a $3.15 billion LNG project. Exxon Mobil also announced plans to invest over $500 million in its initial LNG construction project. The Exxon project, along with TOTAL and Eni’s $8 billion 3.4 million tons per annum (mtpa) floating plant, mean Mozambique will have the ability to export 31 mtpa of natural gas, about 10% of today’s global market.
Aerial rendering of LNG Facility
(source: www.mzlng.com/content/documents/MzLNG_CompanyHighlights-Final.pdf)
Mozambique has been one of the ‘fastest-growing economies’ on the African continent for the last two-and-a-half decades. It has outperformed both regional and global growth averages, with rich oil and gas reserves that are attracting substantial investment from across the globe.
Our motto at InterGest South Africa is “If you want to be successful in any African country, you need to have a local presence”. We would like to announce that we will establish a local presence in Maputo during the first quarter of 2020. Together with our partners, we will provide unparalleled support to all foreign companies interested in expanding into the Mozambican market. Offering the full range of services that are designed to assist exporting companies in the establishment and administration of a foreign branch, subsidiary or a direct selling organisation. We can also assist with market research, recruitment, establishing a sales force team, logistics, and warehousing solutions.
Key industry sectors in Mozambique:
- Mining
- Textiles
- Medtech
- Oil and Gas
- Construction
- Agriculture and Fishery
- Infrastructure and Energy
- Water / Waste Treatment
Ask us about our Go2Africa service offering. We offer the most up to date, cost-effective, and efficient method currently available for developing foreign markets.
Contact: info
intergest.co.za – Charné Potgieter
