A growing economy, a stable political system, excellent government incentives and plenty of opportunities for entrepreneurs makes Mozambique an attractive option for anyone looking to expand their operations.
Mozambique is a land of mystery and contrasts. There are still swathes of undiscovered resources in this fast developing nation that continues to exhibit year on year of economic growth. Foreign investment is gaining momentum and large international organisations are building a strong presence in the nation.
Despite this there are many areas, especially in the north of the country, that remain poor and undeveloped. As a result, there is a thirst for services and supplies. Of course, where there is demand, entrepreneurs quickly find a way to supply it.
“Life in Mozambique, and the way you do business, may be different to European norms,” Igino Bilotta, the recently appointed honorary consul of Malta in Maputo, explains. “However, investors who are willing to explore Africa’s potential will find an excellent base in Mozambique.”
A former Portuguese colony, Mozambique has only recently emerged from a vicious civil war that raged for 15 years, only ending in 1992. Despite this, the country has grown rapidly and has attracted a variety of European and Asian investors. Others within the international business scene are keeping a sharp eye on developments in the country.
“Tourism is experiencing rapid growth,” Mr Bilotta explains. “With over 3,000 kilometres of shoreline and idyllic islands, we are seeing luxury resorts going up to cater for five star travellers who want to enjoy the picturesque scenery of Mozambique. The country is no longer just for back-packers,” he adds with a smile.
The Mozambican government has already issued over 80 concessions allowing hotel developments to spring up on remote islands. However, these developments need ancillary services that include everything from cleaning crews to transport providers. It is this rush of economic activity that is creating a wealth of niche opportunities in the country.
“Foreign companies can also take advantage of strong financial incentives,” Mr Bilotta states. “Not only can you operate your company with highly advantageous tax benefits for the first year, but you can also enjoy the waiving of import duties on specific goods.”
With the discovery of many new mineral deposits, mining companies are entering the fray. These require skilled support services, medical facilities, accommodation, recruitment and so forth.
“Regular tenders are issued,” Mr Bilotta says, “and some very large contracts go to businesses that can meet the requirements. In addition, local businesses can certainly benefit from the import and export opportunities that exist. There are a number of Maltese products that are needed in Mozambique, as well as many products in Mozambique that have good international demand.”
But surely there is a language barrier? While most Maltese businesspeople are multi-lingual, surely they will find it difficult because they do not speak the native language?
“Portuguese is the official language, although English is spoken by a small minority.
This will entail some learning, but it should not prove to be insurmountable,” Mr Bilotta replies. “Going through the consulate is an investor’s best option as we can help you meet with the right people to help you get your venture off the ground.”
As Mozambique continues to develop, more and more business opportunities will arise within its borders, and there are going to be an increasing number of foreign companies who seek to establish themselves there. And, as any canny investor will tell you, the best time to get involved is at the beginning.
Interested Maltese investors can contact Mr Bilotta directly on maltaconsul.maputo@gov.mt or on telephone number +258 84398 8524