Mozambique investment guide factsheet
Country Overview
General Information
Mozambique is a southeastern African nation with a population of approximately 33 million people, characterized by a predominantly young and rapidly growing workforce. This demographic structure provides a foundation for long-term economic growth and labor-intensive industrial development. Since gaining independence from Portugal in 1975, Mozambique has undergone periods of both turbulence and progress. The devastating civil war that followed independence left deep scars but was followed by a steady recovery marked by democratization and economic liberalization. The country is governed by the FRELIMO party, which has remained in power since independence. Following the 2024 elections, Daniel Chapo assumed the presidency, signaling continuity but also raising expectations for renewed reforms and inclusive development.
Strategic Location
Geographically, Mozambique enjoys a privileged position on the Indian Ocean coastline, stretching over 2,400 kilometers. Its three major ports—Maputo, Beira, and Nacala—provide strategic gateways for landlocked neighbors such as Malawi, Zambia, and Zimbabwe. This gives Mozambique a pivotal role in regional trade and logistics. The country is also a member of the Southern African Development Community (SADC) and participates in the African Continental Free Trade Area (AfCFTA), granting investors preferential access to a combined market of more than 1.3 billion consumers. This strategic location, coupled with regional integration frameworks, positions Mozambique as both a national market of growing significance and a platform for regional expansion.
Government Priorities
The Mozambican government has articulated a clear set of priorities aimed at fostering inclusive and sustainable growth. The PREDIN program focuses on recovery and development in the northern provinces, where conflict has disrupted communities and economic activities. At the national level, the Economic Acceleration Package (PAE) seeks to stimulate growth through fiscal reforms, improved governance, and infrastructure investment. Sectorally, the government emphasizes agriculture, energy, and tourism as strategic pillars, reflecting the country's comparative advantages and the potential to generate jobs and foreign exchange. These priorities signal to investors that Mozambique is actively aligning its policies with both immediate needs and long-term structural transformation.
Why Invest in Mozambique?
Mozambique offers a compelling investment case. The country is endowed with vast natural resources, including some of the world's largest natural gas reserves, fertile agricultural land, and valuable mineral deposits. Investors benefit from an improving incentive regime, including tax holidays, customs exemptions, and preferential trade access through AGOA, the EU's EPA, and SADC protocols.
A SWOT analysis captures the overall investment climate:
Strengths: Abundant natural resources, a young and trainable workforce, and strategic geographic location.
Weaknesses: Infrastructure deficits, bureaucratic inefficiencies, and limited domestic capital markets.
Opportunities: The LNG boom, expanding regional trade under AfCFTA, and growth potential in agro-processing and tourism.
Threats: Security concerns in Cabo Delgado, vulnerability to climate shocks such as cyclones and droughts, and high debt burdens that constrain fiscal space.
For investors, Mozambique presents both challenges and substantial rewards. Success depends on understanding the country's dynamics, aligning with government priorities, and adopting robust risk mitigation strategies.
Economic Environment
Macroeconomic Conditions
Mozambique's macroeconomic profile is defined by both opportunities and vulnerabilities. In 2024, the country's gross domestic product (GDP) stands at approximately USD 20 billion, with a modest growth rate of around 1.8%. Inflation is relatively contained at about 3.2%, reflecting some degree of monetary stability despite structural challenges. Public debt remains a critical concern, hovering near 100% of GDP, which constrains fiscal flexibility and raises the importance of prudent financial management. The local currency, the Metical, has shown relative stability, providing some reassurance to investors wary of exchange rate volatility. However, macroeconomic fragility underscores the need for reforms and careful policy coordination to ensure a more sustainable trajectory.
Economic Outlook
The medium-term outlook for Mozambique is considerably brighter than its short-term performance suggests. A key driver is the expected relaunch of liquefied natural gas (LNG) production in mid-2025, positioning the country as the world's third-largest exporter of LNG. This single development is set to reshape Mozambique's growth prospects, with projections of 6–8% annual GDP growth beyond 2025. Alongside LNG, traditional commodity exports such as coal and cashews continue to provide a steady flow of foreign exchange. Fiscal reforms, backed by a USD 456 million facility from the International Monetary Fund (IMF), aim to improve transparency, strengthen public financial management, and rebuild investor confidence. If implemented successfully, these reforms could create a more predictable business environment and foster long-term economic resilience.
Trade and Investment
Mozambique is firmly embedded in regional and global trade networks. Its main trading partners include South Africa, , China and India, reflecting both geographic ties and commodity demand patterns. Foreign direct investment (FDI) reached USD 2.5 billion in 2024, with the majority concentrated in the energy sector, particularly LNG and power projects. Beyond energy, Mozambique benefits from preferential market access through several frameworks, including the U.S. African Growth and Opportunity Act (AGOA), the European Union's Economic Partnership Agreement (EPA), the Southern African Development Community (SADC) Trade Protocol, and the EU's "Everything But Arms" initiative. These arrangements provide Mozambican exports with reduced tariffs and wider market opportunities, creating potential for diversification into agro-processing, light manufacturing, and value-added commodity exports.
Infrastructure and Utilities
Infrastructure development is central to Mozambique's investment potential. The country boasts several strategic ports—such as Maputo, Beira, and Nacala—that connect inland African economies to global markets. The Nacala Corridor, in particular, is a critical rail and road network supporting regional trade. In the energy sector, Mozambique is endowed with abundant hydroelectric and natural gas resources, which underpin its capacity to expand both domestic access and regional exports. Nevertheless, gaps remain acute in rural areas, where limited electricity access and weak transport infrastructure hinder inclusive growth. Public–private partnerships (PPPs) are increasingly promoted as a means to close these gaps, while international support—such as the Millennium Challenge Corporation's USD 537 million compact for Zambezia Province—offers targeted opportunities for infrastructure expansion and improved service delivery.
Financial Sector
The financial sector in Mozambique is relatively small but evolving. The banking industry is dominated by a handful of commercial banks that provide core lending and deposit services, while the Bolsa de Valores de Moçambique (BVM), the country's stock exchange, remains at an early stage of development but presents opportunities for long-term capital raising. Investors have access to a range of financing options, including international development finance institutions such as the U.S. International Development Finance Corporation (DFC), as well as local banks offering credit lines for businesses. Human capital is both a challenge and an opportunity: around 70% of the population is employed in agriculture, often at subsistence levels, and the economy faces widespread skills shortages. However, Mozambique has a young and trainable workforce, creating potential for targeted vocational training and capacity-building programs to meet the demands of a modernizing economy.
Key Investment Sectors and Opportunities
Main Areas
The Mozambican government has identified a set of priority sectors that are central to its economic transformation strategy. These include agriculture, industry, energy, tourism, infrastructure, and mineral resources. Together, they represent the backbone of the country's investment agenda and the areas where policy reforms, incentives, and development programs are most concentrated. Investors who align with these national priorities are more likely to find institutional support and favorable regulatory conditions.
Agriculture and Agribusiness
Agriculture is the foundation of Mozambique's economy, employing the majority of its workforce and holding vast untapped potential. Of the country's 36 million hectares of arable land, only a fraction is currently under cultivation, leaving ample room for expansion. Traditional cash crops such as cashews, cotton, and sugar remain central, while fisheries offer additional opportunities for export earnings. Beyond raw production, there is significant potential in processing and value chain integration—for example, cashew shelling, cotton spinning, and sugar refining. International programs, such as the Millennium Challenge Corporation's (MCC) initiatives, are actively supporting commercialization and market access, particularly in provinces with high agricultural productivity. This creates fertile ground for agribusiness investors interested in both domestic and export-oriented ventures.
Energy
Mozambique is emerging as a global energy powerhouse. The Rovuma Basin contains some of the largest natural gas reserves in the world, with multibillion-dollar projects led by TotalEnergies and ExxonMobil set to transform the country's fiscal and trade balances. Coal remains another significant resource, already contributing to exports, while renewable energy—particularly solar and hydro—presents an expanding field for sustainable investment. Public–private partnerships (PPPs) are being encouraged to finance, build, and operate power generation and transmission infrastructure, not only to meet domestic demand but also to support exports to regional markets in Southern Africa. The scale of Mozambique's energy potential makes it one of the most attractive destinations for long-term capital inflows on the continent.
Mineral Resources
The mining sector is another cornerstone of Mozambique's economic future. The country holds substantial reserves of gold, rubies, graphite, and heavy sands, placing it among Africa's leading resource-rich nations. Global demand for graphite, in particular, is surging due to its role in electric vehicle batteries, positioning Mozambique as a strategic supplier in the global energy transition. While extraction is currently the dominant activity, there are growing opportunities in processing and value addition, such as cutting and polishing gemstones or refining heavy sands for industrial use. These downstream activities not only create higher returns but also align with government objectives to diversify and industrialize the economy.
Manufacturing and Export Processing
Mozambique is taking steps to strengthen its manufacturing base, with an emphasis on light industry and value-added exports. Aluminum production already represents a significant share of industrial output, and there is room to expand into related sectors. Special Economic Zones (SEZs), such as those around Nacala, offer incentives for investors in manufacturing and export processing, including tax reductions and streamlined regulatory regimes. Opportunities exist in import substitution, particularly in consumer goods and agro-processing, where local production could reduce dependence on imports while fostering job creation.
Tourism
Tourism represents a high-growth sector with considerable diversity. Mozambique's pristine beaches, rich cultural heritage, and unique ecosystems—including reserves and national parks—offer a strong basis for eco-tourism, cultural tourism, and high-end leisure investments. The sector has faced setbacks due to cyclones and security challenges in certain regions, but recovery efforts are creating fresh openings. Investment in quality accommodation, tour operations, and conservation-linked projects is especially promising, as the government looks to position Mozambique as a regional tourism hub.
Infrastructure and Transport
The development of transport and logistics infrastructure is critical for enabling other sectors to thrive. Mozambique's strategic geography—with deep-water ports such as Maputo, Beira, and Nacala—gives it a competitive edge as a transit country for landlocked neighbors. Major opportunities exist in roads, bridges, and railways, many of which are being developed through concessions and PPPs. Investors can participate in both construction and long-term operation, particularly in projects linked to trade corridors that facilitate regional integration.
Special Economic Zones
Mozambique's SEZs are designed to attract investors by offering preferential conditions. These zones typically provide tax reductions, customs exemptions, and simplified administrative procedures. They also allow for greater flexibility in hiring expatriates and structuring investments. The government is actively expanding the SEZ framework, with sites such as Nacala and Beira serving as testbeds for export-oriented industrialization. For investors, SEZs present an attractive entry point with lower barriers and predictable regulatory conditions.
Other Sectors
Beyond the main areas, several emerging industries offer niche opportunities. Fisheries and aquaculture are underdeveloped, despite Mozambique's long coastline and rich marine resources. Logistics services, particularly in warehousing and cold storage, are also in high demand to support growing trade volumes. These sectors require careful navigation of sector-specific regulations and licensing regimes, but the long-term potential is significant for investors with sectoral expertise.
Legal and Regulatory Framework
Institutional Framework
Mozambique has put in place institutions aimed at streamlining and facilitating investment. The Investment and Export Promotion Agency (APIEX) functions as the central "one-stop shop" for investors, offering guidance, approvals, and coordination with relevant authorities. APIEX plays a crucial role in reducing bureaucratic hurdles and providing a first point of contact for foreign businesses. Other important bodies include the Ministry of Economy and Finance, which oversees macroeconomic and fiscal policies, and the Commercial Registry and Legal Entities (CREL), which manages company registration and formal incorporation processes. Together, these institutions provide the backbone of the country's investment environment, although coordination and efficiency still present challenges for newcomers.
Investment Law
The cornerstone of Mozambique's investment regime is the Investment Law (No. 3/93), which underwent a major revision in 2023 to align with modern practices and investor needs. The law provides key guarantees, including the protection of property rights, the right to repatriate profits, and access to international arbitration mechanisms such as ICSID (International Centre for Settlement of Investment Disputes) and protection under MIGA (Multilateral Investment Guarantee Agency). Incentives are a central feature, particularly for larger projects: investments above USD 500,000 may qualify for tax holidays, customs exemptions, and other benefits designed to encourage long-term capital inflows. These provisions position Mozambique as an open and legally secure destination for foreign direct investment.
Fiscal System and Incentives
Mozambique's fiscal framework combines standard taxation with targeted incentives. The Corporate Income Tax (CIT) is set at 32%, but reduced rates apply in certain cases, such as 10% for companies operating in agriculture or Special Economic Zones (SEZs). Value-Added Tax (VAT) was recently adjusted to 16% following the government's Economic Acceleration Package (PAE), while Stamp Duty and the SISA property transfer tax (ranging between 2–10%) remain relevant for corporate transactions. Investors also benefit from customs exemptions linked to priority projects and from Mozambique's network of Double Taxation Agreements (DTAs), which include treaties with countries such as the United States, China, and Portugal. These agreements reduce the risk of tax duplication and encourage cross-border investment.
Company Incorporation and Registration
Establishing a company in Mozambique involves several formal steps. The process begins with the approval of a company name and the drafting of articles of incorporation. This is followed by a capital deposit, which varies depending on the chosen legal structure. Registration with CREL formalizes the company's legal existence, and subsequent publication in the Boletim da República serves as official confirmation. After incorporation, businesses must obtain a taxpayer identification number (NUIT) from the tax authority, as well as complete labor and social security registration. While the procedures are relatively clear, delays may occur, and many investors choose to work with local legal or consultancy firms to ensure compliance and expedite the process.
Access to Land (DUAT)
Land in Mozambique is owned by the state, but investors can acquire usage rights under the DUAT (Direito de Uso e Aproveitamento da Terra) system. Foreign individuals or companies may obtain a DUAT either by maintaining residency for at least five years or by presenting an approved investment project. Regulations differ between urban and rural land, with rural leases typically involving longer approval processes and community consultations. Special licenses are required for land located in environmentally protected or strategic areas. While DUATs provide secure long-term usage rights, they cannot be sold, though improvements and infrastructure on the land may be transferred. For investors, navigating land acquisition requires both legal expertise and local stakeholder engagement.
Labor Law and Hiring Foreign Technicians
Mozambique's labor law balances the need for local employment with the demand for specialized skills. Quotas regulate the number of foreign employees companies can hire: small companies (up to 10 workers) may hire one foreign employee, while medium and large enterprises can employ between 5–10% of their workforce from abroad. Exceptions exist for investment projects, companies in SEZs, and those in strategic sectors such as oil, gas, and mining, where greater flexibility is permitted. Foreign workers must obtain appropriate contracts and documentation, and employers are responsible for compliance with visa and residency requirements. Although the system can appear restrictive, it provides avenues for investors to secure expatriate expertise where local capacity is limited.
Foreign Exchange and Remitting Funds
Mozambique provides guarantees for the transfer of capital, dividends, and royalties, ensuring that investors can repatriate earnings abroad. However, all such transactions must pass through local bank accounts, which are subject to oversight by the central bank. While this adds an administrative layer, it also creates transparency and stability in the financial system. Investors are advised to establish strong banking relationships early to facilitate smooth cross-border transfers and compliance with exchange control regulations.
Other Aspects
Mozambique's regulatory environment extends into several additional areas that investors should consider. Intellectual property rights are formally recognized and protected under national law, though enforcement remains developing. Competition and price policies aim to safeguard fair markets, while certain industries remain excluded from privatization or are subject to state control. Entry and exit conditions, including ownership and control structures, are guided by both domestic law and bilateral treaties such as the U.S.–Mozambique Memorandum of Understanding on investment. Environmental considerations are increasingly significant: projects of a certain scale require environmental impact assessments and licenses, and sustainability compliance is an emerging priority. Finally, the legal framework for Public–Private Partnerships (PPPs) provides opportunities for infrastructure and service delivery projects, though success depends heavily on contractual clarity and government capacity.
How to Invest: Step-by-Step Guide
Step 1: Analyzing Opportunities
The first step for any investor in Mozambique is to understand the market landscape. APIEX offers dedicated resources such as market reports, sector studies, and investor FAQs that provide insight into the most promising sectors. Conducting due diligence at this stage is essential, as it allows investors to assess both the opportunities and risks. Key "dos" include engaging with local advisors, considering partnerships with Mozambican firms, and aligning projects with government priority areas. Conversely, "don'ts" include underestimating bureaucratic requirements or neglecting local community engagement, both of which can derail even well-funded projects.
Step 2: Starting a Business
Once an opportunity has been identified, the next step is establishing a legal presence. The process begins with reserving a business name, followed by choosing the appropriate legal form. Most foreign investors opt for either a Private Limited Company (Lda) or a Public Limited Company (SA), depending on the scale and structure of the investment. Each option carries different capital requirements and governance obligations, and legal advice is recommended to ensure the most suitable choice.
Step 3: Legal Obligations
Before operations can begin, companies must fulfill certain legal obligations. Core documentation includes articles of incorporation, proof of capital deposit, and shareholder identification. Foreign investors are also required to register for a Mozambican taxpayer number (NUIT), which is necessary for any fiscal activity. Registration with the labor and social security authorities must also be completed at this stage, ensuring that the company is fully compliant with Mozambican law.
Step 4: Obtaining an Investment Certificate
An investment certificate provides official recognition of a project under Mozambique's Investment Law. This certificate unlocks access to fiscal incentives such as tax exemptions or customs benefits, particularly for projects exceeding USD 500,000. The application is submitted through APIEX and requires a detailed business plan, proof of financing, and supporting documentation. Timely approval of the certificate is a crucial milestone in securing legal guarantees and investor protections, including the right to profit repatriation.
Step 5: Banking and Financing
All investors must open a mandatory local bank account to conduct transactions in Mozambique. This account is also the gateway for capital inflows, loan disbursements, and profit transfers. Financing options extend beyond local commercial banks to international institutions such as the U.S. International Development Finance Corporation (DFC), as well as regional banks that support infrastructure and industrial projects. Developing relationships with local financial institutions can also help in navigating foreign exchange regulations and facilitating day-to-day operations.
Step 6: Import/Export Requirements
For businesses engaged in trade, registration as an importer or exporter is essential. This process includes compliance with customs procedures, payment of applicable taxes, and use of Mozambique's Single Electronic Window platform, which streamlines documentation and clearance. Exporters targeting preferential markets such as the EU or the U.S. under AGOA must also ensure compliance with rules of origin requirements to qualify for reduced tariffs. A strong grasp of these procedures can help investors avoid delays and optimize trade flows.
Step 7: Land and Buildings
Accessing land or real estate requires navigating Mozambique's DUAT system, which grants long-term usage rights rather than outright ownership. Investors must present either residency credentials or an approved investment project to secure a DUAT, and additional permits are required for construction activities. Once completed, buildings and improvements must be registered with the property registry, which ensures legal recognition and transferability of rights. Careful planning at this stage is essential to avoid disputes and ensure compliance with local regulations.
Step 8: Environmental Compliance
Environmental licensing is mandatory for most medium- and large-scale projects. The process typically begins with an Environmental Impact Assessment (EIA), followed by the issuance of licenses from the Ministry of Land and Environment. Depending on the project type, additional permits may be required for emissions, waste management, or resource use. These procedures can be time-consuming, but they are increasingly important as Mozambique strengthens its environmental governance. Investors who integrate sustainability considerations early in project design often face smoother approval processes.
Step 9: Hiring and Expatriates
Employment practices in Mozambique are regulated under national labor law. All employees must have formal contracts, and companies must contribute to social security on behalf of their staff. Hiring foreign workers requires compliance with quota systems, though exceptions are available in SEZs and priority industries such as oil and gas. Employers must also manage work permits, residency visas, and contract documentation for expatriates. Establishing transparent human resource policies helps companies comply with regulations and build trust with both local authorities and employees.
Step 10: Operations and Sectoral Permissions
Once the company is established, certain industries require additional sector-specific licenses. For example, industrial projects may need production permits, while companies in SEZs must comply with zone-specific investment regulations. Investors in oil, gas, or mining are subject to specialized frameworks and oversight by dedicated ministries. Ensuring compliance with these requirements from the outset prevents costly delays and fosters smoother operations.
Exit Strategies
Investors should also plan for eventual exit scenarios. Mozambique's legal framework allows for asset sales, mergers, and share transfers, all subject to approval and registration processes. Disputes may be settled through local courts or via international arbitration mechanisms such as ICSID, which provide a neutral venue for resolution. Having a clear exit plan provides flexibility and reduces uncertainty in the long run.
Timeline and Tips for Expediting
On average, setting up a business and securing all necessary authorizations in Mozambique takes between three and six months, depending on the sector and project size. Investors can expedite the process by engaging experienced local legal counsel, maintaining close communication with APIEX, and preparing thorough documentation in advance. Partnering with local stakeholders and aligning with government priorities can also accelerate approvals and open doors to additional incentives.
Risks and Challenges
Political and Security Risks
Political and security dynamics remain central concerns for investors in Mozambique. The insurgency in Cabo Delgado Province, linked to ISIS-affiliated groups, has caused significant instability, with an estimated 5,947 fatalities to date. While regional military support has helped contain the conflict, the situation remains fluid, particularly around LNG project areas in the north. Beyond insurgency risks, the political climate carries its own uncertainties. Post-election periods have occasionally been marked by unrest and contested outcomes, including after the 2024 general elections. Although Mozambique has a long-standing tradition of relative stability compared to other fragile states, investors are advised to closely monitor the evolving political and security environment, especially in project-sensitive regions.
Economic and Financial Risks
Macroeconomic vulnerabilities also pose challenges. Mozambique's public debt levels remain elevated at close to 100% of GDP, constraining fiscal flexibility and raising repayment concerns. Interest rates in the range of 12–15% make domestic borrowing costly, while reliance on external financing creates exposure to global financial conditions. The country's heavy dependence on commodities leaves it susceptible to international price shocks, particularly in coal, gas, and agricultural exports. Inflation, while relatively stable in recent years, has shown volatility in the past and could resurface if fiscal discipline falters or external shocks hit. These factors highlight the importance of careful financial planning and hedging strategies for investors.
Operational Challenges
Investors in Mozambique often face operational hurdles that impact business performance. Bureaucracy remains a persistent issue, with lengthy approval processes and inconsistent application of regulations. Corruption adds further complexity: Mozambique ranked 145 out of 180 countries in Transparency International's 2024 Corruption Perceptions Index, reflecting widespread governance concerns. Infrastructure gaps, especially in rural transport and electricity access, raise costs and limit market reach. In addition, the shortage of skilled labor presents a barrier to industrial expansion. While Mozambique's workforce is young and trainable, companies must often invest heavily in vocational training and on-the-job capacity building to meet operational needs.
Environmental and Social Risks
Mozambique is one of the most climate-vulnerable countries in Africa. Regular cyclones, floods, and droughts not only disrupt communities but also threaten infrastructure and agricultural production. These natural disasters can lead to significant project delays and increased operational costs. Social risks are equally significant: poverty affects approximately 62.8% of the population, while inequality remains stark between urban and rural regions. The country's Human Capital Index score of 0.36 indicates severe deficits in health, education, and workforce readiness. For investors, these structural challenges translate into both risks and responsibilities, as projects are increasingly expected to integrate social and environmental resilience.
Risk Mitigation
Despite these challenges, mitigation mechanisms exist to help investors manage risk. Mozambique's engagement with the International Monetary Fund (IMF), including a USD 456 million facility, is designed to strengthen fiscal discipline, improve governance, and restore investor confidence. Political risk insurance through MIGA (Multilateral Investment Guarantee Agency) and partnerships with development finance institutions such as the U.S. International Development Finance Corporation (DFC) provide additional safeguards against instability and expropriation. On the operational side, surveys and testimonials from private investors suggest that aligning projects with government priorities, maintaining transparent practices, and engaging local communities significantly improve outcomes. By leveraging these mitigation tools, investors can balance Mozambique's risks with its considerable growth potential.
Executive Summary
Investment Guide for Mozambique
Mozambique presents a high-potential but complex investment destination, balancing significant natural resource wealth and regional advantages with structural challenges and risks.
Country Context
Population & Workforce: ~33 million, with a young and expanding labor pool.
Politics & Governance: Stable one-party dominance (FRELIMO), with Daniel Chapo as president since 2024. Reform momentum is focused on inclusivity, northern recovery, and economic acceleration.
Strategic Location: Over 2,400 km of coastline with three major ports (Maputo, Beira, Nacala), serving landlocked neighbors and providing access to 1.3B consumers via SADC and AfCFTA.
Economic Environment
GDP: ~USD 20B (2024), with near-term growth subdued (~1.8%) but medium-term prospects strong, driven by LNG projects.
Outlook: LNG production resuming in 2025 could propel 6–8% growth, transforming Mozambique into the world's 3rd-largest exporter.
Debt & Finance: Debt near 100% of GDP; interest rates 12–15%. IMF-backed reforms aim to restore fiscal discipline.
Trade & Access: Preferential entry to U.S. (AGOA), EU (EPA/EBA), and regional SADC markets.
Key Investment Sectors
Agriculture & Agribusiness: Vast arable land, export crops (cashews, cotton, sugar), fisheries, and agro-processing potential.
Energy: World-class LNG reserves, coal, hydro, and renewables; strong PPP potential.
Minerals: Graphite, rubies, gold, heavy sands; demand growth linked to EV supply chains.
Manufacturing/SEZs: Aluminum, light industry, export processing zones with incentives.
Tourism: Coastal and eco-tourism opportunities, albeit sensitive to climate and security.
Infrastructure/Logistics: Transport corridors (Nacala, Beira) and PPP-led transport/utility upgrades.
Investment Law (2023 update): Guarantees profit repatriation, property rights, and access to ICSID/MIGA arbitration.
Institutions: APIEX serves as the one-stop shop; CREL manages registration.
Taxation & Incentives: CIT 32% (reduced in SEZs, agriculture); VAT 16%; exemptions available for large projects.
Land: DUAT system grants long-term usage rights; community consultation required for rural leases.
Labor: Quotas on foreign workers (5–10%), with flexibility for SEZs and strategic sectors.
Investment Process (Step-by-Step)
Market Research (APIEX resources, due diligence).
Business Incorporation (Private/Public Ltd; CREL registration; NUIT).
Investment Certificate (unlocks tax/customs incentives).
Banking & Finance (mandatory local account; access to DFC, PPPs, DFIs).
Import/Export Setup (Single Electronic Window; rules of origin for preferential markets).
Land & Property (DUAT lease, permits, registry).
Environmental Licensing (EIA + ministry permits).
Hiring & HR (contracts, quotas, permits for expatriates).
Sectoral Licensing (industrial/mining/oil & gas).
Exit Options (sales, mergers, arbitration).
Typical Timeline: 3–6 months, expedited by strong documentation and local advisory support.
Risks and Challenges
Political/Security: Cabo Delgado insurgency (~5,947 fatalities); periodic post-election unrest.
Economic/Financial: High debt, costly borrowing, commodity dependence.
Operational: Bureaucracy, corruption (TI rank 145/180), weak infrastructure, skill shortages.
Environmental/Social: High climate vulnerability (cyclones, droughts), poverty rate ~63%, HCI 0.36.
Risk Mitigation
Macro/Policy: IMF reforms, improved fiscal transparency.
Insurance/Guarantees: MIGA political risk insurance, DFC partnerships.