Research and consulting in Mozambique

Country overview:

IOA has developed considerable expertise on Mozambique by conducting various research and consulting services focusing on the country. Our analysts have decades of experience tracing the country’s reconstruction after its lengthy civil war. Today’s country is largely impoverished and underdeveloped, but growing consistently stronger as citizens and businesses benefit from ever-improving infrastructure. As of late 2024, the country stands at a crossroads, with the ongoing development of significant offshore gas reserves in the Rovuma basin set to have a transformative effect on the economy. This is contrasted by a challenging security environment that has seen the development of Southern Africa’s only Islamist insurgency derail gas projects in the countries north as well as violent civil unrest in the countries urban areas following a disputed election in late 2024. Other challenges include extreme sensitivity to climate change, which has exacerbated the damage caused by the country’s annual cyclone season.

Mozambique has a well-developed agriculture sector benefitting from fertile land. IOA analysts forecast greater investment in agriculture, as well as manufacturing and energy production. Tourism is another sector showing great promise. However, cyclones made regular and violent by climate change expose the country’s vulnerability to global warming.

Tips on doing business in Mozambique:

Starting a business:

• Mozambique allows for fairly liberalised foreign ownership of businesses, though land usage rights are somewhat opaquer. Foreigners may incorporate local LLCs with full ownership and no minimum starting capital. Property ownership is altogether more complicated
• All land is technically owned by the state, though locals may obtain “land use rights” either through inheritance or purchases. Foreigners may apply for similar, subject to minimum investment and maximum square metre guidelines
• The business registration process can be initiated by applying for a name reservation at the Balcão de Atendimento Único (BAÚ) and Legal Entities Registrar
  (Read more at: https://apiex.gov.mz/invest/)

Doing business:

• The code of fiscal benefits grants tax and customs benefits depending on the amount, location, and sector of investment activity. These include exemptions from payment of customs duties and VAT on import of capital goods and their accompanying parts and accessories
• There are specific regimes in place for Agriculture, Tourism, Manufacturing, enterprises and large-scale projects
• Challenges include limited infrastructure, persistent issues with supply chains, a complex regulatory environment and limited access to local credit. Ongoing militant activity in the northern region of Cabo Delgado additionally adds to the overall security risk

Culture and society:

• Portuguese is the main language of administration and commerce, and it would be advisable to work through an interpreter if one isn’t fluent
• The negotiation process can often seem quite drawn out compared to some other countries, punctuated by initial socialisation and extensive back-and-forth bargaining. Trying to expedite the process is generally considered rude and would likely jeopardise the deal
• Safety wise, violent crime is a persistent problem and it is generally advisable not to travel alone after dark. Areas without clearly demarcated roads should be avoided as many rural areas still host landmines left from the country’s civil war. A recent resurgence in militant activity in the Cabo Delgado region means that this area is best avoided

A sample IOA research report on Mozambique:

Download the Mozambique Profile
(2MB – PDF)