THE ECONOMIC CASE FOR BUSINESS IN MOZAMBIQUE

If the recent discoveries of natural gas are confirmed, Mozambique will rank fourth in the world for natural gas reserves - behind Russia, Iran and Qatar. The government is planning to spend $50bn over the next decade to tap those reserves, and to create thousands of new jobs. As it is, the GDP of Mozambique is growing at an average rate of 7,2% pa. Nacala is home to the third largest deep water port on the east coast of Africa. It is in the early stages of a US$200 million upgrade, which may include the building of a coal terminal. The Nacala Special Economic Zone (ZEEN) comprises an extensive transport corridor that links the provincial capital (Nampula) with landlocked hinterland countries such as Malawi, Zambia and the Congo. Collectively, this transport network is known the Nacala Development Corridor (CDN). Business opportunities in the ZEEN include basic Infrastructure development, such as roads, power, telecommunication. Maputo, the capital and largest city in Mozambique, comprises a lively manufacturing industry. The city manufactures cement, pottery, furniture, shoes, and rubber. The US$ 105 million second phase of the PROMAPUTO initiative, in which plans to improve urban planning, institutional development, financial sustainability, urban infrastructure investment and maintenance, metropolitan development, is currently underway. Investments are also being made for the establishment of specific terminals, including but not limited to bulk liquids, granite, coal and automobiles at the main port of Maputo. By 2020, the port is expected to generate US $ 160 million per annum. With its pristine beaches, beautiful coral reefs, legions of game fish and the Quirimbas national park, Pemba is holidaymakers paradise. As such, there is great potential to generate high levels of income from tourism and hospitality. Pemba Airport, one of the busiest in Mozambique, handles on average 1200 people per day. As of 2011, a US$ 300 million public tender for the construction of a new airport, with the capacity to receive 500 000 people per year, was launched. This is expected to be built under concession and work should take between four and five years to complete. This project, lends itself to several business opportunities for South African companies.