REPUBLIC OF MOZAMBIQUE

__________________

MINISTRY OF INDUSTRY AND TRADE

NATIONAL DIRECTORATE OF INDUSTRY

Business and Investment Opportunities

in the Industrial Sector

Mozambique Business Luncheon

JHB 28th June 2012

By:Dr. Nicolau Sululo

Presentation Layout

The Industrial Strategy

Factors for Promoting Industrialization

Main Investment Opportunities in the Industrial Sector

Other opportunities

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Industrial Policy & Strategy(2007)

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The Industrial Policy & Strategy provides recommendations and guidelines on how to achive an increase in production, productivity and quality within the industrial sector.

It also defines the industrial priorities based on the availability of resources within the country.

Industrial Priorities:

Food processing

Furniture

Construction materials & Equipment

Packaging

Textiles and Apparel

Metals

Printing

Recycling

Factors for Promoting Industrialization

Political, Social and Macroeconomic Environment

Young Population

Investiment Law (Code of Fiscal Benefits)

Geografical Structure(Land, Sea, Air)

Availability of Resources

Water & Energy

Minerals (coal and e gas)

Others

Main Investment Opportunities

in the Industrial Sector

Manufacturing

Industry

Mining Infrastructure

Energy

Others

Manufacturing

Industry

The Textiles & Apparel Sector

Due to the importance of this sector, the

Government has developed the Strategy for

the Development of the textile and apparel

sector

Strategic Objectives:

Increase cotton production;

Establish a spinning and fabric forming industry;

Attract export orientated investment in the apparel sector;

Promote the production of traditional textiles and apparel.

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All the Value Chain of Cotton:

Ginning of Cotton; Spinning Weaving Clothing

The Textiles & Apparel Sector

Season Cotton Seed

(Tons) Cotton Fibre

(Tons)

2007/2008 69.505 25.342

2008/2009 60.303 21.450

2009/2010 41.287 15.849

2010/2011 70.189 26.672

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The Packaging Sector

Variety of agro-food products available with export potential; specifically cashew, dried fruit and fruit juices; Export potential to SADC market; The ‘plastics’ production sector is relatively advanced technically with a good product range; Plastics recycling companies in place; Some good quality printing of paper-based products;

There is no local production of paperboard cartons,

paper sacks or bags, metal closures and glass.

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Packaging Industry

Packaging:

Cans; Glass Bottle; Plástic Bottle; Card Box; Plastic Box; Paper Bags; Raffia Bags; Sisal Bags.

Indústrias de loiça sanitária Raw Materials

Common Clay in all country Kaolinite – Ribaué, Muiane, Gilé, Ilé Kaolin – Nuaparra, Marrapino, Gilé, Ilé Feldspar– Nacala, Manica, Alto Ligonha,

Ribaué

Sanitary Ware Industry

Wood Industry

All value chain, but mainly on produts with high value added:

Building Materials; Furniture.

Leather Industry and downstream

Herds of Cattle and Goats –

Livestock Census, 2009/2010

Cattle Goats Maputo 155.740 204.996 Gaza 312.981 345.036 Inhambane 185.923 406.004 Manica 157.437 505.042 Tete 318.911 651.308

Energy

Hydro power

Project Location (District/City and Province)

Amount (US$) Promoter

MOZAMBIQUE

REGIONAL

TRANSMISSION

BACKBONE (CESUL)

Capacity: 2650 MW

Transfer Capacity

The Transmission Line

will link Matambo

Substation (Tete

Province, District of

Changara) up to

Marracuene

Substation (Maputo

Province)

1.660.000.000

Ministério da Energia

Direcção de Estudos e

Planificação

Maputo

Av. 25 de Setembro,

1281, 3o andar

Tel : +258 2130 32 65

Fax : +258 2131 39

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Web: www.me.gov.mz

REINFORCEMET OF

POWER

TRANSMISSION LINE

FOR CENTRE-NORTH

(2ª LINE)

Capacity: 220 kV

The Transmission Line

will link Chimuara

(Sofala Province,

District of Caia) and

Nacala (Nampula

Province)

150.000.000

Cahora Bassa Norte

Hydropower Plant (CHB

NORTH)

Capacity: 1245 MW

Província de Tete

(Distrito de Cahora

Bassa)

1.300.000

Lúrio Hydropower Plant

Capacity: 120 MW

Cabo Delgado

Province (Chiúre

District)

400.000.000

Downstream Industries for the Transmission Backbone

Cables

Cement

Transformers

Transport

Mining

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Mining Projects and Ventures

Graphite, Ancuabe

Marble, Montepuez

Rovuma (Cu, Ni, Zn)

Moma, Heavy Sands Moebase, Heavy Sands,

Coal: Moatize, Benga e

Ncondezi

Heavy Sands: Rio Tinto

Heavy Sands of Chibuto

Phosphate, Monapo

Magnetite/Ilmenite.

Infrastructure

Infrastructures for Transport

• Nacala Corridor: Railway

Network linking Nacala to

Niassa province and to Malawi

and then to Zambia.

•Nacala Port: Deep Water

Natural Port in East Africa

Coast.

•Nacala Airport: Acess to

Malawi, Zambia, Tanzania ,

Asia, Middle East, Central

Africa.

INFRASTRUCTURE in Nacala Special

Economic Zone

Other

Downstream Industries to the mega-projects

Food Industry

Iron and Steel Industry – (coal)

Cement Companies - Public Infrastructures

Textil Industry – SADC, AGOA

Cement Industry

oCurrently there are 6 factories in opration with the total

capacity of 2.537.500 Ton/year;

oThere are 9 factories on project implementation phase

with about of 5.600.000 Ton/year;

oThere is in pipeline a project of a cement factory with

production estimates of 500.000 ton/year;

oIt is expected more investments due to market demand

(growing construction industry) and the availability of

local raw materials (limestone).

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Industrial Parks

Dondo, Sofala

Moatize in Tete

Beluluane, Maputo

Heavy Industry

Metal-mechanics industry

Heavy metals industry

Metal fabrication

Steel Industry

CONTACT DETAILS

Dr. Nicolau Sululo

Counselor (Economic and Trade)

High Commission of the Republic of Mozambique in South Africa

Tel. +27 12 401 0300

Fax: +27 12 326 6388

Email: sululo@embamoc.co.za

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Ministry of Trade and Industry

National Directorate of Industry

Tel.: + 258 21 352691 Fax : + 258 21 352692

Business Centre Information: +258 827862495

Website: www.mic.gov.mz