A) ECONOMY OF MOZAMBIQUE
 Mozambique is a rising economic power. Political stability and the economists’ prospects suggest that the country's Gross Domestic Product (GDP) will grow an annual rate of 7.7% until 2015, placing the country among the four most accelerating world growths.  The economic growth is being powered in particular by the structure of the industry sector and the discovery of important energy resources, including coal, salt, graphite, gold, precious stones, marble, and especially coal, oil and natural gas.  Particularly in relation to natural gas, Mozambique may become the third largest exporter, since the discovered gas reserves are quite significant, which approximate to those of Algeria, which is the largest African producer, and happen to be among of the five largest natural gas reserves holders in the world.  Having said that, considering that the big companies are developing these sectors industry and energy resources - and since Mozambique does not have sufficient structures, for instance, in transport, such as railways and roads and bridges, other companies will have to come in order to develop the necessary infrastructures.  This will inevitably lead to more growth in many other areas and not only those related to energy resources, thus enabling the country to achieve that expected growth of GDP, boosted by the returns of foreign direct investment.

Last 5 years annual GDP growth rate

http://www.tradingeconomics.com/charts/mozambique-gdp-growth-annual

0 FREEDOM FROM CORRUPTION FISCAL FREEDOM 76.7 LABOUR FREEDOM MONETARY FREEDOM TRADE FREEDOM 75.4 INVESTMENT FREEDOM 50.0 37.0 27.INDEX YEAR 2013 OVERALL SCORE 55.0 PROPERTY RIGHTS 30.2 BUSINESS FREEDOM 63.9 74.9 .0 FINANCIAL FREEDOM 50.

) Rank: 119 (2012 est. petroleum products.) 7.9%) services (46.) agriculture (29.5%) industry (23.wikipedia.) $1. IMF.org/wiki/Mozambique .) 52% (2009 est.69 billion (PPP) (2012 est.1% (2012 est.200 (PPP) (2012 est.5%) (2012 est. coal.) 139th http://en.) aluminum. food processing. tobacco. SADC . Group of 77 $26.) $2. beverages 2. African Development Bank.) Rank: 212 (2012 est. asbestos. chemicals (fertilizer. glass.cement. WTO.World Bank.77 billion (31 December 2012 est. te xtiles. soap.5% (2012 est. paints).Currency Fiscal year Trade organizations GDP GDP growth GDP per capita GDP by sector Population below poverty line Main industries Inflation (CPI) Foreign reserves Ease of Doing Business Rank Mozambican metical (MZN) Calendar Year AU.

....5 Goods market efficiency...............................pdf ....3.................................2 Higher education and training.......3 Innovation...................8 Labour market efficiency..........3......3....... 120..... 115...4 Infrastructure.......................................org/docs/GCR2011-12/CountryProfiles/Mozambique...... 132...3.......107...................3....................................9 Market size .................................................129.......8 Financial market development.............................................................. 116..0 Business sophistication .........105.............................3 GCI 2010–2011 (out of 139).......6 Macroeconomic environment.......0%)........................... 117.3...........3..................3................. 122...B) GLOBAL COMPETITIVENESS INDEX • • • • • • • • • • • • • • • • • • GCI 2011–2012 ....weforum. 129..8 Innovation and sophistication factors (5..................3.............................2........... 118.....................................0%)...........................9 Health and primary education........ 136........3................. 133......108..............................2..... 133..........131.....................................2..........................2............................2.......8 http://www3........................123............8 Efficiency enhancers (35.................3.4 Institutions........2 Technological readiness.......................................................... 128.......................3 GCI 2009–2010 (out of 133).......................................3...................................0%)..................3.............................2 Basic requirements (60................

doingbusiness.TOPIC RANKINGS DB 2013 Rank DB 2012 Rank Change in Rank Starting a Business Dealing with Construction Permits Getting Electricity Registering Property Getting Credit Protecting Investors Paying Taxes Trading Across Borders Enforcing Contracts Resolving Insolvency 96 135 174 155 129 49 105 82 135 174 160 127 46 103 -14 No change No change 5 -2 -3 -2 134 132 147 135 132 146 1 No change -1 http://www.org/data/exploreeconomies/mozambique .

Poor physical infrastructure. SWOT analysis .A variety of unexploited mineral deposits.Tensions between the two main political parties.Access to a potentially significant regional market WEAKNESSES . deriving from their history of civil war.Weak and non-transparent administration. THREATS . rail and air transport.Infrastructure development. especially as regards land rights. . and telecommunication.Mozambique’s Competitive Advantages and Challenges STRENGTHS . A lack of skilled and technically trained labour.Government commitment to a businessfriendly economic environment. . and . . OPPORTUNITIES . and .Political stability. . including power generation.HIV/AIDS epidemic and its impact on Based on: UNCTAD 2010.Processing of commodities.One of the fastest growing economies in sub-Saharan Africa with a high average growth over the last 5 years. . water development management.

C) EMERGING SECTOR .

AGRICULTURE .

lays stress on large scale farming and market incentives. Development of commercial agriculture in suitable areas with existing water resources and irrigation facilities is another priority.12 percent is under cultivation. There are around 60 rivers in Mozambique to which are useful in irrigating the fields.AGRICULTURE • Mozambique has an estimated 36 Million Hectares of arable land of which only around 10 . • Some of the large export crops have been revived by foreign investments and joint ventures. There is immense agricultural potential in Mozambique. poor road network and marketing.ht ml) . diverse soil types and climatic conditions are suitable for a large variety of crops. The rehabilitation of such facilities is one of the priorities of the government.in/Investment_Opportunities_in_Mozambique. (http://focusafrica. but many crops domestically produced still face a lot of constraints in infrastructure. The post – independence policy on agriculture.gov.

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in/Investment_Opportunities_in_Mozambique. mining and quarrying contributed to only 1. Still in 2007.gov. fluorite. emeralds. The regulatory responsibility for mining rests with the Ministry of Mineral Resources and Energy. With an increase in the geological studies there has been a vast increase in the investment by the leading international and regional mining companies. granite.MINING • Mozambique has a significant amount of mineral deposits in coal.6 % of the GDP. (http://focusafrica. oil. gold bauxite. diamonds and titanium. bentonite. • The mining sector has been growing due to the presence of international mining companies. tourmaline. The constraints in this sector are poor infrastructure and the late civil war. The other known deposits are of graphite. gold.html) . apatite and limestone. coal. natural gas. marble. diatomite.

which allowed the private investors in the sector. the Mozambican government liberalized the electricity market. natural gas. The country has enormous resources for production of energy. large hydro resources.ENERGY • In July 1997. • The demand for electricity is expected to grow around 11% each year till 2015. coal. The solar power and hydro electric power can create power for domestic use as the electrical power grid only reaches to 14% of the population. (http://focusafrica. biomass and high levels of solar radiations. With the new reforms both the national and international players have equal opportunities.in/Investment_Opportunities_in_Mozambiq ue.gov.html) .

(http://focusafrica.in/Investment_Opportunities_in_Mozambique. The food processing sector is one of the largest segments of this industry. Light manufactures.gov. such as beverages. The sector has benefited immensely by the macro economic situation and the increase in the demand resulting to massive foreign investment and high economic growth. Mozambique’s industrial base was well developed by Sub-Saharan standards due to the boom in investments in this sector in the period of 1960 -70.MANUFACTURING • At the time of independence.htm l) . textiles and wood processing are also important.

INFRASTRUCTURE .

7 139.7 427.2 255.FORGIEN DIRECT INVESTMENT (IN FLOW) Values in USD Million FDI Inflow 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 381.4 587 .7 244.4 347.3 336.7 107.9 153.

org/BESnapshots/Mozambique/default.aspx) .FDI POLICES IN DIFFERENT SECTOR (http://rru.worldbank.

org) . (http://www.D) Earlier Indian companies and their business • • • • • • • • • • • • • • • Coal India Limited Coal Venture International Tata Mozambique Tata Steel JSW Steel Essar Group JSPL Adani Group Patel Engineering Videocon BPCL Varun Beverages Angelique International Limited Overseas Infrastructure Mohan Energy Corporation Jaguar Overseas etc.hicomind-maputo.

Under the terms of agreement. 3) Essar Group The Essar Group wants greater mobility for the products from its mining and steel operations in Africa. The Company has earlier said that it is also planning to set up a coal washery in Mozambique by the fiscal-end. Tata Steel will pay AUD100 million (approximately 88.Business of Indian companies in Mozambique 1) Tata steel Location : Key coal exploration tenements (the Benga and Tete licences) held by Riversdale in Mozambique Project Highlights Tata Steel and Riversdale Mining Ltd. is also looking to set up a 2. to reduce the high ash content from the mine there. The port will initially boast facilities that can handle 30-40 million tonne of . so Essar Ports has finalised a plan to develop a port in Mozambique.000 crore investment in Mozambique.2 million USD) to acquire 35% of Riversdale's Benga and Tete licences. 2007. Africa for its first overseas port project. Australia signed a joint venture agreement on November 30. which has plans to produce 10 million tonnes per annum (MTPA) coal from the mine at peak level. Essar Ports is readying for Rs 3. 2) JSW Steel The Company.640 MW thermal power plant in the African nation.

2013. . is in discussions with the Mozambique-based NCondezi Coal to acquire a minority stake in its coal assets. 5) Coal India limited Taking its plans to develop coal blocks in the African nation forward.000 metre was completed in May. 2013." Coal India informed an inter-ministerial panel in a meeting.Business of Indian companies in Mozambique 4) Adani Enterprises The Gujarat-based Adani group’s flagship firm.200 crore). Coal India has started further exploration of its twin mines in Mozambique.000-2. The selection of agency for further drilling of 30. The deal with the AIM-listed NCondezi is expected to be in the range of $350-400 million (Rs 2. "The drilling (of blocks in Mozambique) has started in the first week of June.

F)PEST ANALYSIS .

In the meantime. • Looking ahead. In parallel. • (http://www. there have been calls for direct talks between President Guebuza with RENAMO leader. among other things. the next two years will be marked by several political milestones. The transition to peace.worldbank. It considers this issue a precondition for the realization of municipal elections that they've threatened to disrupt if agreement is not reached.Political overview • Following independence from Portugal in June 1975. following years of successive poll defeats. The well anticipated designation of the party’s candidate to succeed President Guebuza who is due to step down at the end of his term in 2014 and the 2013 municipal elections. the country is undergoing political turmoil since the leader of the largest opposition group (RENAMO) decided to boycott this year’s municipal elections and the subsequent general elections of next year. Delegations of both sides have been holding talks since the crisis first erupted some three months ago. the revision of the electoral law and regulations governing the composition of the electoral body. the country underwent a 16-year armed conflict that ended in 1992. and democracy culminated in the country’s first democratic elections in 1994 and the emergence of the Front for the Liberation of Mozambique (FRELIMO) as the dominant political force in the country. political stability.org/en/country/mozambique/overview) . • RENAMO is demanding. a fact that still holds true today.

The country’s recent achievement of Extractive Industry Transparency Initiative (EITI) compliant status (October 2012) is an important milestone in the country’s economic development. • However.2% in 2011 and 7.5% in 2012. .3% in 2009 but rising to 7. at 1.2 billion in 2012. • Recent figures indicate that foreign direct investment (FDI) doubled to US$5. and structural reforms – has been bolstered by a boom in large foreign investments in the burgeoning energy and natural resources sectors. Vast untapped coal reserves have attracted multinationals such as Brazil's Vale and Australian Rio Tinto. with economic growth dipping to 6. • The country has weathered the global economic and financial crises. this impressive trajectory of growth has not been matched by a concomitant reduction in poverty and creation of jobs and livelihoods. • The country has become a world-class destination for mining and natural gas development. Mozambique's economy is forecast to grow at 7% this year (2013). Economic growth – spurred on by political stability. Infrastructure spending as well as foreign investments in new mega-projects are expected to drive economic growth to 8% over the medium-term. reconstruction.Economical environnent • Mozambique’s transition from a post-conflict country to one of Africa’s “frontier economies” has been nothing short of impressive. Mozambique’s long coastline positions it as a natural gateway to global markets for neighbouring land-locked countries. • Alongside its natural resources.2% in the 12-months ending in September 2012. steady macroeconomic management. • Inflation has reached record low levels. prompting questions about the current development model and the need for greater inclusiveness and economic diversification.

SOCIAL FACTOR AGE DISTRIBUTION POPULATION GROWTH (ANNUAL %) .

Mozambique is on the list of countries for Treatment scale-up under the WHO 3 by 5 Initiative.  Tuberculosis case notification rate was 138 per 100. . The majority of new Infections occur among those under 29 years of age. Chloroquine is the first line drug for uncomplicated Malaria.  With 41% of children under five stunted and 24% underweight. Life expectancy.000 in 2002.HEATH ISSUES IN MOZAMBIQUE  Maternal mortality is estimated at 1. Mozambique ranks 11th on WHO’s list of high-burden TB countries. estimated at 45 years in 2003. causing 15 to 30% of all under-five Deaths. is expected to drop to around 38 years in 2010. With 40% of all deliveries attended by skilled personnel. The main parasite is P. The total fertility rate is 5.  The HIV/AIDS epidemic is expanding with an estimated prevalence of 13%. malnutrition remains a problem.  Malaria is the primary cause of mortality among children.000 live births per year. falciparum.000 per 10.5.

RESEARCH AND DEVELOPMENT EXPENDITURE (% OF GDP) IN MOZAMBIQUE Internet users 1.311 Rank 114 Penetration 4.8% Rank 188 .140.

G) FTA AND MOZAMBIQUE .

H) Role of world Trade organization .

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