Mozambique is expecting to benefit from the increased number of visitors to South Africa for the 2010 FIFA World Cup, according to recent remarks by the Mozambican Minister of Tourism, Mr. Fernando Sumbana, speaking at the U.S.-Mozambique Trade & Investment Conference held in Maputo. The Minister outlined a number of new tourist developments in Mozambique, many of which are targeted toward the luxury segment of the market. Until recently, U.S. businesses have not been involved in a significant way in tourism development in Mozambique. However, Mozambique is strongly encouraging U.S. businesses to explore this rapidly expanding market.
Airport
Construction Underway
The Airports of Mozambique, a parastatal company, has initiated major airport infrastructure expansion projects in Maputo, Pemba, and Vilanculos with the assistance of USTDA financing. These projects will increase access outisde Maputo for flights from major international destinations.
Tourism is not the only growth sector in Mozambique and opportunities for U.S. businesses exist in a number of rapidly expanding sectors. Opportunities include, but are not limited to,
Agriculture
- Mozambique has the potential to become a leading producer of biofuels, due to its significant tracts of undeveloped land and climate conducive to growing biofuel crops.
- U.S. investors, including Chiquita Banana, Dunavant Cotton and the Universal Company, are ramping up operations in Mozambique to reap the awards of Mozambique’s largely undeveloped and fertile arable land. It is estimated that only ten percent of Mozambique’s arable land is utilized, causing the market to be wide-open to foreign investment. Chiquita selected Mozambique as the headquarters for its Africa operations last year.
Energy & Mining
- Opportunities exist in energy generation and transmission, petroleum, natural gas, coal, heavy sands and uranium.
- Several U.S. companies are considering multi-billion dollar projects in Mozambique. Anadarko, a Texas-based oil company, already has begun exploring for oil in the Northern region of Mozambique, leading the way for increased U.S. investment in the energy sector.
- Companhia Vale do Rio Doce (CVRD), the world's largest iron ore producer, is awarding contracts for a $2 billion project in Mozambique that may develop the southern hemisphere's biggest mine for so-called black coal. Opportunities exist for U.S. subcontractors.
Millenium Challenge Corporation (MCC)
- The MCC signed a $507 million Compact designed to reduce poverty in Mozambique by promoting sustainable economic growth. The MCC’s investment in Mozambique will foster investment and increase economic opportunities in the Northern region of the country. Specific projects include:
- Water and Sanitation Project. This $203 million grant will increase access to a safe, reliable water supply and sanitation services in in eight cities and rural water in two provinces of Mozambique.
- Transportation Project. This $176 million grant for rehabilitation of 491km of key roads of the transportation network will improve access to markets, resources, and services; reduce transport costs for the private sector to facilitate investment and commercial traffic; expand connectivity across the northern region and the southern half of the country; and increase public transport access for individuals to take advantage of jobs and other economic opportunities.
- Land Tenure Service Project. This $39.1 million grant will establish more efficient and secure access to land by improving the policy framework, upgrading land information systems and services, and helping beneficiaries to register land rights and access land for investment.
- Farmer Income Support Project. This $17.4 million grant will reduce the spread of the Coconut Lethal Yellowing Disease and increase farmer income by improving productivity and diversification of cash crop production.
Newsletter Sources:
- U.S Embassy, Mozambique
- Millenium Challenge Corporation, http://www.mcc.gov
For more information on business opportunities in Mozambique, please contact: Luisa.d.Santos@mail.doc.gov
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