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Special Economic Zones in Mozambique

Special Economic Zones in Mozambique: A Gateway for Investors

Mozambique, a resource-rich nation in Southeast Africa, has strategically positioned itself as an attractive destination for foreign investment through the establishment of Special Economic Zones (SEZs). These zones are designed to foster economic growth, enhance regional development, and integrate the country into global value chains. By offering a conducive environment for businesses, SEZs aim to boost productive capacity, expand the tax base, create employment opportunities, and generate foreign exchange. As of 2025, Mozambique's SEZs continue to evolve, leveraging the country's abundant natural resources, strategic location along the Indian Ocean, and improving infrastructure to attract investments in sectors such as agriculture, industry, logistics, tourism, and agro-processing.

The concept of SEZs in Mozambique is rooted in national legislation, including the Investment Law and subsequent decrees, which provide a framework for these zones. They operate under a special customs regime that exempts goods from duties and taxes, while also offering fiscal, labor, and immigration incentives. This article explores the definition, incentives, and key SEZs in Mozambique, drawing on official data and recent developments to guide potential investors.

Definition and Objectives of Special Economic Zones

A Special Economic Zone in Mozambique is defined as a geographically delimited area of general economic activity subject to a special customs regime. Under this regime, all goods entering, circulating, manufactured, transformed, or exported from the zone are exempt from customs duties, fiscal or para-fiscal charges. Additionally, SEZs enjoy a free exchange regime, including for offshore operations, along with tailored fiscal, labor, and immigration arrangements. These measures facilitate the rapid entry and efficient operation of enterprises and investors, enabling them to meet commercial and financial obligations abroad.

The primary objectives of SEZs align with Mozambique's broader economic strategy:

  • Promotion of Regional Development: By concentrating investments in underdeveloped areas, SEZs help balance economic growth across provinces.
  • Economic Benefits: They expand productive capacity, broaden the tax base, and generate foreign exchange through exports.
  • Job Creation: SEZs prioritize employment for nationals, contributing to poverty reduction and skill development.
  • Sectoral Diversification: Zones target high-potential sectors like agriculture, manufacturing, tourism, and logistics, reducing reliance on extractive industries such as natural gas and coal.
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These zones are managed either publicly by entities like the Agency for Promotion of Investment and Exports (APIEX, IP) or privately, ensuring flexibility in operations. Investors must obtain certificates to operate within SEZs, which grant access to incentives and streamlined approvals.

Fiscal and Non-Fiscal Incentives

One of the most compelling aspects of Mozambique's SEZs is the array of incentives designed to reduce operational costs and enhance profitability. These benefits are available to companies, service providers, and operators certified under the SEZ regime.

Key Fiscal Incentives for Companies:

  • Customs and Import Exemptions: Full exemption from import taxes, including Value Added Tax (VAT), on building materials, equipment, accessories, parts, and other commodities essential for approved activities.
  • Domestic Purchases: Exemption from VAT on purchases made within Mozambique.
  • Juristic Persons Income Tax (IRPC) Relief:
    • Exemption from IRPC for the first three fiscal years.
    • 50% reduction in IRPC from the 4th to the 10th fiscal year.
    • 25% reduction in IRPC from the 11th to the 15th fiscal year.
  • Service Providers: 50% reduction in IRPC for the first five fiscal years.
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Incentives for Operators:

Operators, responsible for infrastructure development and management, receive enhanced benefits:

  • Exemption from IRPC for the first five fiscal years.
  • 50% reduction from the 6th to the 10th fiscal year.
  • 25% reduction for the lifetime of the project.
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Non-Fiscal Benefits:

Beyond taxes, SEZs offer simplified labor and immigration processes, such as expedited visas for foreign workers and flexible employment regulations. Investors also benefit from a free exchange regime, allowing unrestricted repatriation of profits and dividends. These incentives are conditional on compliance with national laws and contributions to local development, such as job creation for Mozambican nationals.

It's worth noting that while these incentives are generous, they are subject to periodic reviews by the government to ensure alignment with sustainable development goals. Investors should consult APIEX for the latest eligibility criteria and application processes.

Overview of Key Special Economic Zones

Mozambique has established several SEZs across provinces, each tailored to regional strengths. Below is a detailed look at prominent zones, highlighting their locations, management, focus areas, investments, and job creation potential.

Nacala Special Economic Zone (ZEEN)

Established by Decree No. 76/2007 on December 18, the Nacala SEZ is the oldest and largest in Mozambique, spanning 1,539 km² across the districts of Nacala and Nacala-à-Velha in Nampula Province. Managed publicly by APIEX, IP, it benefits from its geostrategic location near the deep-water Port of Nacala, serving as a key gateway for trade with landlocked neighbors like Malawi and Zambia via the Nacala Corridor.

Focus Sectors: Logistics, industry, agro-processing, and chemical industry. Investment and Impact: As of recent data, 194 projects have been authorized, with approved investments totaling approximately US$2.445 billion. These are projected to create over 25,000 jobs for nationals. The zone's connectivity to rail and road networks makes it ideal for export-oriented manufacturing.

Mocuba Special Economic Zone

Created by Decree No. 28/2014 on June 6, this zone covers 10,727 km² in Zambézia Province, encompassing the entire Mocuba District and the Munhamade Administrative Post in Lugela District. It is publicly managed by APIEX.

Focus Sectors: Agricultural production, livestock, forestry, and processing, capitalizing on the region's fertile soils and agricultural potential. Investment and Impact: Eight projects have been authorized, with investments of about US$37.4 million, expected to generate 481 jobs. The zone promotes value addition in agribusiness, supporting Mozambique's efforts to enhance food security and exports.

Manga-Mungassa Special Economic Zone

Instituted by Decree No. 22/2012 on June 6, this 217-hectare zone is located in Beira City, Sofala Province. It is privately managed by Dingsheng Internacional Investimento, Lda., which handles infrastructure development.

Focus Sectors: Industry, logistics, transport, hospitality, services, and tourism, enhanced by proximity to Gorongosa National Park. Investment and Impact: Eight operational projects with US$509.15 million in approved investments, creating 2,396 jobs. Its strategic port access in Beira positions it as a hub for central Mozambique's trade.

UTE Special Economic Zone

Formed by Decree No. 11/2019 on February 27, the UTE SEZ occupies 681 hectares in Niassa Province's Chimbunila District, with 529 hectares for an industrial park and 152 for a dry port.

Focus Sectors: Industrial activities and logistics, leveraging northern Mozambique's resources. Investment and Impact: While specific project data is emerging, the zone aims to support mining and agricultural linkages in the region.

Limpopo Agro-Business Special Economic Zone

Established by Decree No. 4/2021 on February 12, this expansive zone covers 7,297 km² across six districts in Gaza Province: Chokwé, Xai-Xai, Guijá, Chibuto, Limpopo, and Chongoene. It ranks second in area after Mocuba and is publicly managed by APIEX.

Focus Sectors: Agro-business, including irrigation-based farming and processing. Investment and Impact: The zone taps into the Limpopo River Basin's potential for large-scale agriculture, promoting exports and rural development.

Macaneta Integrated Tourism Resort Zone

Created by Decree No. 44/2021 on June 30, this zone is in Maputo Province's Marracuene District and is privately managed by Macaneta Bay Resort, SA.

Focus Sectors: Tourism, with plans for an integrated resort including golf courses, residential areas, four- and five-star hotels, a marina, and shopping centers. Investment and Impact: Budgeted at US$774 million, it is expected to create 1,768 jobs. Its coastal location near Maputo makes it appealing for leisure and real estate investments.

Challenges and Opportunities for Investors

While Mozambique's SEZs offer significant advantages, investors should be aware of challenges such as infrastructure gaps, bureaucratic hurdles, and environmental considerations, particularly in zones near protected areas like Gorongosa. Recent government initiatives, including partnerships with international organizations, aim to address these through improved governance and sustainability standards.

For investors, SEZs represent untapped potential in a growing economy. With Mozambique's GDP projected to rise due to natural gas projects and agricultural reforms, these zones provide a low-risk entry point. Opportunities abound in renewable energy integration, digital logistics, and eco-tourism, aligning with global trends.

To get started, contact APIEX for certification and explore partnerships with local firms. Mozambique's SEZs are not just economic enclaves—they are catalysts for transformative growth, offering investors a stake in Africa's rising star.