REPUBLIC OF MOZAMBIQUE - invest.apiex.gov.mz
Transcript of REPUBLIC OF MOZAMBIQUE - invest.apiex.gov.mz
REPUBLIC OF MOZAMBIQUEInvestment & Export Promotion Agency (APIEX)
MOZAMBIQUE: BUSINESS ENVIRONMENT
Afica Investment ForumSandton, November 2018
MOZAMBIQUE AT A GLANCE
Location: East Coast of Africa
Total Area: 799,380Km2
Coastline: 2,700km (Indian Ocean)
Population: 29 Million
Capital: Maputo
Languages: Portuguese (Official); African Languages; English widely spoken
Religion: Catholic (28%); Muslim (18%), Other beliefs
MOZAMBIQUE AT A GLANCE
Macro-economic Indicators (2017):
• GDP: US$ 13.4 Billion
• GDP Per capita: USD 465
• GDP Growth Rate: 3,7%
• Inflation (2017): 5,7%
• Exports (2016): 4.7 Billion
• Imports (2016): 9.1 Billion
Mozambique has an advantageous strategic geographic position, providing an idealgateway to both regional and international markets
Europa /
Mediterranean
Asia
Middle East
Neighbouring SADC
countries
Privileged access to High Opportunity Markets (Regional & International)
WHY MOZAMBIQUE?
GEOPOLITICAL ADVANTAGE• Boardering Tanzania, Malawi, Zambia,
Zimbabwe, South Africa and Eswatine
• I mport/export hub for landlocked countries:
Malawi, Zambia, Zimbabwe, Botswana and
Swaziland.
• 3 International and 8 domestic airports.
• 3 Main seaports.
• Nacala is the deepest natural seaport in west
coast of Africa, with a railway system reaching
Zimbabwe through Malawi and serves as as
the gateway to the “copper belt” of Africa’s
resourceful region.
• Member of SADC or Southern African
Development Community, 14 members
include: Angola, Botswana, Democratic
Republic of the Congo, Lesotho, Malawi,
Mauritius, Mozambique, Namibia, Seychelles,
South Africa, Swaziland, Tanzania, Zambia and
Zimbabwe.
• SADC total population: 270 million
WHY MOZAMBIQUE (CONT.)
Rich and Diverse Natural Resources Base
Young and educated work force
Access to preferential markets: SADC, USA, EU, China, India
Openness to Investment (welcoming, predictable and transparent investment climate)
WHY MOZAMBIQUE (CONT.)
Provision of tax & non-tax incentives
Protection against property expropriation
Non-discriminatory treatment between foreign and domestic investors
No restriction to loans and payment of interests abroad
Sincerity, Hospitability, Friendliness
TOTAL INVESTMENT INFLOW IN MOZAMBIQUE (2014-2018)
8
Agriculture and Agro-industry
7% Aquaculture and Fisheries
5%
Construction and Public Works
6%
Energy…
Industry20%
Services19%
Transportation and Communications
8%
Tourism and Hospitality
9%
MOZ Total Investment flow (2014-2018)
• Energy has the
largest % of
investment inflow
(2014-2018) : 26%
• It is followed by
Industry (20%) and
Services (19%)
• Agriculture and
Agro-industry
received merely 7% of
the total investment
inflows during the
period
Source:APIEX 2019
TAXATION SYSTEM
IMPORT CUSTOMS
DUTIES
Equipment 5.0%
Raw Material 2.5%
Semi-finished products
7.5%
Finished products
20.0%
VAT
17.0%
IRPC
(Residents & non Residents)
32.0%
IRPS
Minimum 10.0%
Maximum 32.0%
WITHHOLDING TAX
(Dividends)
20.0%
Social Security: 4% (employer) 3% (employee)
TAX INCENTIVESGENERAL BENEFITS
In Respect of Import of Goods:
Exemption from customs duties and VAT on theimport of capital equipment, spare andaccessory parts.
In Respect of Income Tax:
Investment Tax Credit;Accelerated Depreciation ;Tax Deductions (Professional Training; Use of
new Technology)
TAX INCENTIVESSPECIFIC BENEFITS
Creation of Basic Infrastructures;
Trade and Industry in Rural Areas;
Manufacturing & Assembly Industry;
Agriculture and Fisheries;
Hotels and Tourism
Science and Technology Parks
Large Scale Projects
Rapid Development Zones
Industrial Free Zones
Special Economic Zones
Mining Activities
Oil & Gas operations
SPECIAL ECONOMIC ZONES & INDUSTRIAL FREE ZONES
SPECIAL ECONOMIC ZONES (SEZ)– Involves investment in
all sectors
– For both export and local markets
– Business must be located in the zone
INDUSTRIAL FREE ZONES (IFZ)– Manufacturing for
exports;
– Should export at least 70% of the products;
– Can be single factory unit (Stand alone).
o ZFI Revúboe
GEOGRAPHIC LOCALIZATION OF SEZ (ZEE) & IFZ
(ZFI) IN MOZAMBIQUE
Special EconomicZone Developers
IRPC exemption in thefirst 5 tax years
50% reduction in therate of IRPC from the
6th to the 10th taxyear
25% reduction in therate of IRPC for the
remaining life of theproject
Special EconomicZone Enterprises
IRPC exemption inthe first 3 tax years
50% reduction in therate of IRPC from
the 4th to the 10th tax year
25% reduction in therate of IRPC from
the 11th to the 15th tax year
Special EconomicZone ServiceEnterprises
50% reduction inthe rate of IRPC for
a period of 5 taxyears
14
FISCAL BENEFITS FOR SEZ
(IRPC-Corporate Income Tax)
Industrial FreeZone Developers
& Enterprises
IRPC exemption in thefirst 10 tax years
50% reduction in therate of IRPC tax fromthe 11th to the 15th
tax year
25% reduction in therate of IRPC for the
remaining life of theproject
Isolated FreeZone Enterprises
IRPC exemption inthe first 5 tax years
50% reduction inthe rate of IRPC taxfrom the 6th to the
10th tax year
25% reduction inthe rate of IRPC for
the remaining life ofthe project
15
FISCAL BENEFITS FOR IFZ(IRPC-Corporate Income Tax)
ROLE OF APIEX
NATURE
• Public institution
• Endowed with
administrative and
financial autonomy
MANDATE
• Promotion and
facilitation of
investment and
exports
SUBORDINATION • Minister of Industry
and Trade
APIEX
HOW MAY APIEX ASSIST YOU?
OFFERS A PACKAGE OF SERVICES TO ASSIST NATIONAL AND FOREIGN
INVESTORS FACILITATING ACCESS TO INCENTIVES OFFERED BY THE
GOVERNMENT AND THE ESTABLISHMENT OF THEIR BUSINESSES.
Facilitation of
National
&Foreign
Investment